Taiwan has drafted a Greenhouse Gas (GHG) Reduction Bill in 2006, which is currently undergoing the legislative process in the Congress. The purpose of this study is to reexamine the legal framework and contents of this Bill, evaluate potential problems and propose recommendations. This study advocates that setting the GHG reduction targets should be settled in this Bill. In addition, based on the analysis of international experiences, it is recommenced that emissions trading scheme in the Bill should be focused on large emission sources and the share of allowance auction should be increased to reduce gratis allocation. Furthermore, from the calculation results based on the long-range energy alternative planning (LEAP) model, a conflict is observed for the existing energy policy and GHG reduction efforts in Taiwan. That is, coal-burning power plants will be the most important source of energy for Taiwan in the future. In order to reduce this conflict, the authors have recommended that the Bill should also be integrated with other relevant existing legislation to achieve a complementary effect. (C) 2009 Elsevier Ltd. All rights reserved.