Scooter riders travel past an oil refinery in Kaohsiung. CNA file photo
The Climate Change Administration (CCA) outlined Taiwan's future carbon pricing structure, proposing a 5 percent cap on large polluters' use of carbon credits to reduce fees, inviting stakeholder review before the official draft's publication.
The official draft's release will initiate a 60-day public consultation period before the regulations become effective, enforcing carbon fees for companies with direct and indirect annual emissions exceeding 25,000 metric tons, affecting around 512 firms by 2025.
Industries like electricity, iron and steel, oil refinery, cement, semiconductors, TFT-LCD, and those with direct fossil fuel emissions over 25,000 tons will face fees. International carbon credits' use to reduce fees will be capped at 5 percent of a company's prior year emissions.
Taiwan Carbon Solution Exchange (TCX) introduced international carbon credits, but those previously purchased won't affect 2025 fees; discussions with TCX aim to exempt certain credits from carbon fees.
The CCA suggested that major emitters could cut fees by acquiring ministry-approved domestic carbon credits from emission reduction projects, yet it's unclear if restrictions on their use align with international credits.
The release of a predraft aimed for wider societal engagement and consensus among stakeholders affected by the fees before the official draft's announcement, anticipated in the first quarter of next year. The exact carbon fee rate remains undetermined but is expected to be finalized in the first quarter next year.
Source: Alison Hsiao (2023). ‘Government releases tentative outline of carbon pricing plans’, Focus Taiwan, 29 December. Available at: https://focustaiwan.tw/business/202312290016