Carbon fee rate to be decided in one to two months: Minister

Taipei, March 27 (CNA) The minister of environment said on Wednesday that it could take one to two months to finalize the carbon fee rate, as a review committee has not yet decided on the rate, but he added that the plan to collect the fees from 2025 remains unchanged.

The Ministry of Environment was previously scheduled to announce the carbon fee rate in the first quarter of this year.

However, Minister of Environment Shieu Fuh-sheng (薛富盛) said at a legislative hearing that after a second meeting of the carbon fee rate review committee on Tuesday, the carbon fee rate has still not been decided, but is expected to be finalized "in one or two months."

Shieu said although there will be no change to the carbon fee collection schedule, "the starting date of the calculation of fee-liable carbon emissions, initially set on Jan. 1, 2024, could be postponed, depending on when the carbon fee rate is set."

According to the schedule previously announced by the ministry, big emitters that emit more than the equivalent of 25,000 metric tons of carbon dioxide a year will start to pay carbon fees in 2025, based on their one-year emissions in 2024.

Asked about the review committee's preliminary conclusions after two meetings, the minister said it has been agreed that the rate should be increased incrementally, with 2030 as a endpoint, in order for businesses to be able to plan operations accordingly.

The rate is to be based on science, while also taking into consideration the consumer price index (CPI) and the recent electricity rate hike, he added.

Another question asked by lawmakers during the hearing was whether the fees paid domestically can be discounted from the European Union's (EU) carbon tariff Carbon Border Adjustment Mechanism (CBAM) when the latter starts to charge a carbon levy in 2026.

Shieu answered in the affirmative but also pointed out that not all carbon fee-liable emitters export their products to the EU.

"It will be mostly those small and medium enterprises that are not big emitters, mainly screw and fastener manufacturers, that will be affected by CBAM, and the Ministry of Economic Affairs has been working to help them respond to the measure," Shieu said.

Environment ministry data shows that a total of 550 emitters meet the 25,000-metric ton threshold, according to 2022 emissions.