Taiwan's carbon fee system has officially been launched. Starting in 2026, enterprises will be required to pay carbon fees based on their 2025 greenhouse gas emissions, at a standard rate of NT$300 per metric ton. To encourage early carbon reduction efforts, the Ministry of Environment (MOE) has introduced two preferential rate mechanisms. Companies that submit a Voluntary Emissions Reduction Plan and meet the reduction target by the end of June 2025 may apply for discounted rates of NT$50 or NT$100 per ton, thereby reducing operational costs. This year, the Environmental Protection Bureau (EPB) of the Kaohsiung City Government took the lead in establishing a Voluntary Emission Reduction Plan Advisory Team, the first of its kind in the country. The team has already visited 20 companies to provide on-site support, and has actively organized training courses, regulatory briefings and technical meetings on reduction strategies, hosting more than 7 sessions with over 500 participants to date.

According to MOE regulations, power generation, gas supply and manufacturing industries with annual emissions of 25,000 tons or more will be subject to the carbon fee. The preferential rate mechanisms include two options: enterprises may adopt science-based reduction targets (SBTs) set by industry category to qualify for a reduced rate of NT$50 per ton, or meet reduction benchmarks based on technical standards to qualify for a NT$100 per ton rate. Companies are encouraged to select the option that best fits their business operational conditions.

As a major industrial hub, Kaohsiung is home to 105 manufacturing enterprises subject to carbon fee obligations, covering key sectors such as steel, petrochemicals and electronics. Based on 2023 data, the city’s total emissions exceeded 37 million metric tons. To support industrial transformation, the EPB has adopted a three-pronged approach focused on capacity building, regulatory clarification and on-site consultation. To date, the EPB has organized seven sessions, including carbon fee courses, regulatory briefings and technical meetings on emissions reduction strategies, with over 500 participants in attendance.

The EPB also took the lead in establishing a Voluntary Emission Reduction Plan Advisory Team, composed of experts in process engineering, power systems and energy integration, who provide one-on-one support directly within factory premises. As of the end of April, the team has assisted 20 companies, including ASE Group, LCY, Hai Kwang, and Delta Electronics. Support has included planning carbon reduction measures, drafting reduction plans, and clarifying key issues such as application procedures, baseline year design, benefit recognition and cost estimation.

EPB Director Jui-Hun Chang stated that Taiwan has officially entered the first year of carbon fee implementation, and enterprises must take proactive steps to meet the challenges of carbon reduction. She urged eligible businesses in Kaohsiung to seize the opportunity and submit their Voluntary Emission Reduction Plans by June 30 in order to qualify for preferential rates. For members of the public interested in carbon fee policies and net-zero topics, she also encouraged participation in the “Net Zero Institute” courses, emphasizing the importance of collective efforts toward sustainable development.