August 24, 2023 | Environmental Information Center, Taiwan |
Taiwan's newly established Climate Change Administration, Ministry of Environment, has unveiled its schedule for implementing carbon fees. By early 2024, the carbon fee rates will be determined, followed by a review of carbon emissions in 2024, and the actual collection of carbon fees beginning in 2025. Approximately 500 regulated entities across Taiwan, responsible for emissions exceeding 25,000 tons annually, will be required to pay their first carbon fees in 2025. The fee amounts will be calculated based on the emissions reviewed in 2024. Taiwan aims to align with the EU's Carbon Border Adjustment Mechanism (CBAM), enabling Taiwanese companies to offset EU carbon tariffs by paying carbon fees in Taiwan.
Environmental groups have criticized the delay in implementing carbon fees, highlighting the potential loss of nearly NT$60 billion in revenue if collection is delayed by just one year. To be effective in advancing the net-zero goal, the Climate Action Network in Taiwan suggests the importance of proceeding with the carbon fee collection without further delay. The carbon fees will be adjusted individually for different industries to encourage emissions reduction aligned with sector-specific targets. The goal is to have the carbon fees system fully operational by year-end.
The creation of the Taiwan Carbon Solution Exchange, set to announce its "Voluntary Emission Reduction Measures" next month, and the "measures for the management of transfer, transaction or auction of carbon credits" in November, is expected to further enhance the country's carbon emissions control framework. Additionally, the rules governing the proportion of "carbon credits offsetting carbon fees" will be revealed by year-end, but how this impacts international carbon rights is yet to be determined.
