While major carbon emitters must pay a carbon fee starting next month based on last year’s emissions, 224 facilities — or about 76 percent of total emissions — qualified for an 80 percent discount due to high carbon leakage risks, the Climate Change Administration said today.
According to the Regulations Governing the Collection of Carbon Fees (碳費收費辦法), entities with annual greenhouse gas emissions of 25,000 tonnes or more must pay a carbon fee by the end of next month based on their total emissions from the previous year.
This is the first time for the carbon fee to be collected since the regulations were promulgated in August 2024.
Photo: CNA
Under Article 6, entities that have obtained approval from the central competent authority for a self-determined reduction plan and have been reviewed and recognized as belonging to an industry with “high carbon leakage risks” would pay a carbon fee multiplied by an emissions adjustment coefficient.
The coefficient for the first phase of the reduction plan is 0.2, amounting to an 80 percent discount.
High carbon leakage risk industries are split into two groups.
Category 1 is a “positive list” based on official industry classifications and calculations of trade exposure, emissions intensity and carbon fee levels.
Category 2 covers companies that can prove their profits are affected by carbon leakage risks, including those whose products face anti-dumping duties or are significantly impacted by US tariff policies.
The estimated number of Category 1 facilities was 260, but only 204 facilities applied and passed the review, Climate Change Administration Director-General Tsai Ling-yi (蔡玲儀) said today.
Together with 20 facilities in Category 2, a total of 224 facilities passed the review, Tsai said.
This year’s total taxable emissions are estimated at about 145 million tonnes, with approved high carbon leakage risk facilities accounting for about 76 percent of total emissions, she said.
Compared with the EU’s emissions trading system, where up to 90 percent of carbon allowances are given for free, Taiwan’s approach is relatively strict, she added.
If a company adopts the stricter type A self-directed emissions reduction plan and qualifies for a preferential rate of NT$50 per tonne of carbon and approved as a high carbon leakage risk facility, then under the formula, if its emissions are 1 million tonnes, only 200,000 tonnes would be subject to payment, Tsai said.
Taiwan Cement Corp is one such company, she said.
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