Taipei: Taiwan anticipates generating approximately NT$4.5 billion (US$142.8 million) in carbon fees as major greenhouse gas emitters approach the country's inaugural mandatory payment deadline, the Ministry of Environment (MOENV) announced Monday. The payment period, which remains open until May 31, represents the first collection phase since the carbon fee system was implemented on January 1, 2025.
According to Focus Taiwan, companies emitting at least 25,000 metric tons of carbon dioxide annually, predominantly within the power, gas supply, and manufacturing sectors, are required to calculate and remit fees based on their total emissions for the year 2025. Recent MOENV data indicates that approximately 512-550 companies in Taiwan have been identified as major emitters subject to this initial phase of carbon fee collection.
The established carbon fee rate stands at NT$300 per metric ton. However, firms submitting and receiving approval for voluntary emissions reduction plans may qualify for reduced rates of NT$50 or NT$100 per metric ton. MOENV reports that 430 facilities applied for such plans, with 403 gaining approval. Of these, 64 qualified for the NT$50 rate, while 339 were eligible for the NT$100 rate. Meanwhile, 27 applications were either withdrawn or rejected.
Furthermore, 224 facilities are classified as high risk for carbon leakage, suggesting production could potentially relocate overseas owing to carbon costs. These facilities, including Taiwan Cement Corp. and numerous electronics firms, account for 76 percent of the 145 million tons of emissions subject to fees this year. To ensure global competitiveness, companies in this category that implement approved reduction plans can apply an adjustment factor of 0.2, effectively reducing their payable fees to 20 percent of the original amount, translating to approximately NT$10 per ton for those utilizing the lowest preferential rate.
MOENV's Climate Change Administration Director-General Tsai Lin-yi estimates first-year revenue generation to be around NT$4.5 billion, with approximately NT$4.05 billion designated for expenditure. These funds are intended to support emissions reduction technologies, local government mitigation and adaptation initiatives, climate governance, just transition measures, and financial tools, including interest subsidies for net-zero projects.
The ministry also mentioned that companies impacted by rising global fuel prices, attributed to tensions in the Middle East, may request extensions or installment payment plans prior to the May 31 deadline.