A new carbon fee program will be implemented this Wednesday, the first day of the new year, according to Environment Minister Peng Chi-ming (彭啓明). The program primarily targets Taiwan’s 500 main carbon-emitters, which account for over half of the nation’s total emissions.
The general rate is NT$300 (USD$9) per metric ton of carbon emissions, and at this time will only apply to companies producing more than 25,000 metric tons of emissions annually. If a company meets certain emissions reduction targets, it can enjoy preferential rates of NT$50 (USD$1.50) or NT$100 (USD$3) per metric ton. The Environment Ministry indicated that 2025 will be considered a trial year and that emitters will be able to report 2024 emissions without paying carbon fees until 2026, when fee collection will begin based on 2025 emissions.
Peng explained that the next step will be to move towards an emissions trading system within three to four years. The ministry is also discussing the possibility of issuing green bonds, which are designed to finance the development of clean energy resources and other sustainability projects, based on Japan’s model for green growth.
Peng said the ministry has planned three major funds to promote green growth, including cooperating with the Financial Regulatory Commission and the Economic Ministry to encourage investment from the insurance and finance sectors. He said that he hopes to further expand Taiwan’s carbon funds through the collected fees, amplify the effects of carbon reduction, and leverage the public sector to grow green financial innovation in the country.
The Cabinet had originally planned to pass legislation on the carbon fee program in 2023, but were delayed by the Environmental Protection Administration (EPA) at the time. Delays persisted after the EPA was changed to the Environment Ministry in August 2023.