TAIPEI (TVBS News) — Taiwan's Ministry of Environment (環境部) announced Monday (Nov. 24) comprehensive plans to offer a 20% discount on carbon fees for industries at high risk of carbon leakage next year. The important initiative aims to mitigate reciprocal tariff impacts from the U.S. as Taiwan's carbon fee system officially launches this year. The Ministry will collaborate with the Ministry of Economic Affairs (經濟部) to establish an inter-ministerial platform for reviewing affected industries every one to two years.
Environment Minister Peng Chi-ming (彭啓明) highlighted the critical urgency for companies emitting over 25,000 tons of carbon annually to pay carbon fees by May 31. Peng emphasized ministries will actively negotiate benefits for companies facing U.S. tariff impacts with high carbon leakage risk factors. The Ministry clarified businesses passing independent reduction plan reviews can apply a 0.2 adjustment factor to emissions, effectively cutting their carbon fees by 80%.
The Ministry of Environment and Ministry of Economic Affairs will announce the comprehensive list of businesses at high carbon leakage risk after detailed discussions. They will recognize these businesses through international industry identification and individual applications processes. Peng noted Taiwan's Carbon Border Adjustment Mechanism (CBAM) will gradually roll out next year, with potential fee collections beginning in 2027.
The Ministry of Environment added Taiwan's CBAM will complete all relevant regulations by the first half of next year before officially launching comprehensive trial declarations. By the first quarter of 2027, the ministry expects to require detailed carbon emissions declarations for all regulated products. The structured timeline establishes Taiwan's comprehensive carbon border adjustment framework for international trade compliance. ◼
