Taiwan’s Carbon Border Adjustment Mechanism (CBAM) is scheduled to launch next year. The Legislature’s Economics Committee invited Environment Ministry and Economic Ministry heads to report on the impact of Taiwan’s carbon fee collection mechanism this Wednesday to get an understanding of how the government can better assist enterprises.
The Environment Ministry pointed out that the CBAM allows carbon over-producers to invest in or buy offset units of carbon from under-producing businesses to reduce their carbon footprint. There are currently 75 countries and regions in the world that have implemented carbon pricing. Some Asian countries that have not yet indicated plans to implement carbon pricing include China, South Korea, and Singapore. The EU’s CBAM is in a transitional phase, with plans to officially launch in 2027.
Deputy Environment Minister Shih Wen-chen (施文真) emphasized the importance of ensuring trade counterparties have no concerns about trading obstacles and stated that Taiwan is making relevant adjustments to ascertain credibility.
Shih also stated that Taiwan will declare carbon emissions beginning with industries that have high carbon leakage risks, such as steel and cement manufacturers. Shih says industries will be offered preferential rates as part of a transitional adjustment period.