TAIPEI (TVBS News) — Taiwan's Minister of Environment Peng Chi-ming (彭啓明) announced on Tuesday (Feb. 25) that a potential one-year delay in the European Union's (EU) Carbon Border Adjustment Mechanism (CBAM) could offer a brief respite for domestic industries. He emphasized, however, that industries should prepare early, as the delay is short. The EU may release the official CBAM version in July or August, impacting Taiwan's CBAM schedule.
Peng noted last week that various sources suggested the EU might delay CBAM due to the United States' new tariff system. Originally set for 2026-2027, the implementation could shift to 2027-2028. However, the EU has not confirmed this, and a domestic task force is closely monitoring CBAM developments.
Peng explained that a delay would provide Taiwan's steel, aluminum, and fertilizer industries with more breathing room, allowing the government to help them adapt. He warned, though, that one year passes quickly, and industries must prepare to face CBAM's pressures.
The key, Peng said, lies in whether the EU releases the official CBAM version as scheduled in July or August. This will determine the impact on Taiwan's plan to start its CBAM legislative process in the latter half of the year. Peng stressed that CBAM is complex, requiring World Trade Organization notification, and Taiwan plans to follow the EU's lead.
