The 12-metre tree - which was made by a team of six students from Transworld University in Taichung - will be recycled at the end of the festive season and the city's mayor Jason Hu is hoping the tree will encourage people to enjoy the traditions of Christmas in an environmentally-friendly way.
He said: "Christmas must be celebrated in an eco-friendly way, and it is the same when we choose clothing or when we take a shower.
"An eco-friendly Christmas tree is a sign of an improved society, and a symbol of creativity."
