Taiwan basically determines carbon fee rate 
On October 7, 2024, the Ministry of Environment of Taiwan held a briefing session to explain the draft “Carbon fee rate”, the carbon fee rate has been basically determined.
In order to implement the carbon fee system, the following three regulations on carbon fee have been issued and implemented from August 29, 2024, which specify the targets subject to carbon fee and the requirements for them, also well as how to calculate the carbon fee.
- Regulations governing the collection of carbon fees
- Designated greenhouse gas reduction goal for entities subject to carbon fees
- Measures for the management of self-determined reduction plan
Once the carbon fee rate has been set, collection of carbon fee will start. According to the Ministry of Environment, the “Carbon fee rate” is scheduled to take effect on January 1, 2025, and the payment for 2025 is expected to be made in May, 2025.
Proposed carbon fee rate
The carbon fee rate is proposed to be divided into the following three levels depending on whether the company implements self-determined carbon reduction plans, and the carbon reduction targets it sets:
| Fee level | Fee rate (NT＄/ton CO2e) |
Eligible entities |
|---|---|---|
| General fee rate | 300 | 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 tons of carbon dioxide equivalent per year. |
| Preferential fee rate A | 50 | The above entities that implement a self-determined carbon reduction plan approved by the central competent authority and comply with the “Reduction targets for specific industries” listed in the Annex 1 of the “Designated greenhouse gas reduction goal for entities subject to carbon fees”. |
| Preferential fee rate B | 100 | The above entities who implement a self-determined carbon reduction plan approved by the central competent authority and comply with the “Reduction targets for technology leaders” listed in the Annex 2 of the “Designated greenhouse gas reduction goal for entities subject to carbon fees”. |
The reduction targets can be found in the following URL.
- Designated greenhouse gas reduction goal for entities subject to carbon fees
https://oaout.moenv.gov.tw/law/LawContent.aspx?id=GL007916
Comparation with neighboring countries
During the briefing session, the spokesperson also made a comparation with neighboring countries.
| Items | Japan | South Korea | Singapore | Taiwan |
|---|---|---|---|---|
| Emissions in 2021 (Mt CO2e) | 1168.1 | 638.9 | 53.7 | 297.0 |
| Per Capital Emissions in 2021 (ton CO2e/person) | 8.78 | 13.11 | 12.34 | 12.66 |
| Carbon Fee Level (NT＄/ton CO2e) | 64.7 | Nominal Carbon Fee of 2021: 439.1
(Real carbon fee: about 5.7) |
2019: 116.5
2024-2025:582.5 (Real carbon fee: 139.8~233) |
Proposed fee rate:
General Fee: 300 Preferential fee rate A: 50 Preferential fee rate B: 100 |
In addition, to be in line with the international carbon pricing system, it is suggested to increase the carbon fee rate in stages. The long-term carbon fee rate (after 2030) can refer to the international caron price level and be set at NT＄1,200 to NT＄1,800 per ton.
The materials used in this briefing session can be downloaded from the following URL (in Traditional Chinese).
https://enews.moenv.gov.tw/DisplayFile.aspx?FileID=32260BE98BF1B20F
