How Can Carbon Fees Help Taiwan Reduce Carbon Emissions?

Abstract

Taiwan will levy a carbon fee starting in 2025, according to the three-tier carbon accounting model and carbon emissions inventory measures. On 21 October 2024, Taiwan’s Ministry of Environment announced the carbon fee and that Taiwan had officially entered an era in which carbon emissions would be priced. The carbon fee officially took effect on 1 January 2025. Therefore, all manufacturing and power industries with annual carbon emissions exceeding 25,000 tons of carbon dioxide equivalents (tCO2e) would be billed. The carbon fee system provides various preferential rate options and encourages all companies to propose voluntary reduction plans. Rate differences can help generate substantial carbon reduction action. However, the carbon fee system is flexible and can be adjusted in the future based on implementation status and industry change to help cope with changes in the net-zero transformation process.