Taiwan issues 3 carbon fee regulations to support the implementation of the carbon fee system 
On August 29, 2024, the Taiwan’s Ministry of Environment issued 3 carbon fee regulations, which are “Regulations governing the collection of carbon fees”, “Designated greenhouse gas reduction goal for entities subject to carbon fees”, and “Measures for the management of self-determined reduction plan”. The 3 regulations make up the supporting mechanism for the implementation of the carbon fee system, all of them took effect on the announcement date. Entities can follow these regulations to calculate carbon fees to be paid and plan their carbon reduction measures.
Who are subject to carbon fees
Electricity and gas suppliers and manufacturers that have emission sources designated under the Article 21 of the “Climate Change Act” and whose total greenhouse gas emissions from direct emissions and indirect emissions from electricity use exceed 25,000 metric tons of carbon dioxide equivalent per year.
How calculate the carbon fees
The carbon fees are calculated using the following formula.
Carbon fee=Chargeable emissions × fee rate
Where,
- Chargeable emissions = (annual emissions-K value) × emissions adjustment factor
- K value: For entities with high leakage risk, the K value is 0, while for others, the K value is 25,000 metric tons CO2e.
- Emissions adjustment factor: For entities with high leakage risk, the emission adjustment factor is 0.2 for the first carbon fee period, 0.4 for the second carbon fee period, and 0.6 for the third carbon fee period. For other entities, the emission adjustment factor is 1.
When to pay the carbon fees
Entities subject to the carbon fees must calculate and pay the carbon fee for the previous year’s emissions (January 1 to December 31) by the end of May each year after the carbon fee rate takes effect.
What’s the self-determined reduction plan
Entities subject to the carbon fees can submit a self-determined reduction plan to the central competent authority for review. If the entities meet the reduction targets specified in the reduction plan, they may apply the preferential fee rate for that year. The submission procedures of the reduction plan and emission reduction measures are set in the “Measures for the management of self-determined reduction plan”.
What’s the designated GHG reduction targets
The designated GHG reduction targets are designated by the central competent authority. At present, the target emission reduction rate is set at 25.2% for the steel industry, 22.3% for the cement industry, and 42% for other industries with 2021 as the base year and 2030 as the target year.
The original text of the above regulations can be found from the following URL (in Traditional Chinese).
- Regulations governing the collection of carbon fees
https://oaout.moenv.gov.tw/laW/LawContent.aspx?id=GL007914 - Designated greenhouse gas reduction goal for entities subject to carbon fees
https://oaout.moenv.gov.tw/Law/LawContent.aspx?id=GL007915 - Measures for the management of self-determined reduction plan
https://oaout.moenv.gov.tw/law/LawContent.aspx?id=GL007916
