Environment ministry to have personnel posted in EU to follow CBAM implementation

Taipei, Sept. 18 (CNA) The Ministry of Environment (MOEVN) said Wednesday the European Union has confirmed that Taiwan's carbon fees will be able to reduce CBAM tariffs imposed on non-EU exporters, and the ministry will have its personnel stationed in the EU starting early next year.

According to a MOEVN statement, the ministry's delegation visited the EU's climate-change-related institutions on Monday to discuss climate change, carbon emission trading, air quality and chemicals management and circular economy.

The face-to-face exchange made with the officials of EU institutions helped the ministry confirm that Taiwan's carbon fees, which are scheduled to be collected starting 2026, will be able to reduce the CBAM levy charged by the EU, the ministry said.

The ministry previously said that the fees paid could be deducted from the CBAM levy, and the meeting on Monday was a direct confirmation from the EU.

However, the details on how the carbon price paid in a third country would be credited to lower CBAM certificate obligations will not be out until mid-2025, according to MOENV.

The EU is to phase out the free allowances allocated to certain sectors under its emission trading system (ETS) gradually from 2026, and at the same time, CBAM (carbon border adjustment mechanism) will be introduced to impose carbon levy on those sectors' products imported from non-EU countries.

The said sectors covered by CBAM are cement, aluminum, fertilizers, electricity, hydrogen, iron and steel. According to the ministry, Taiwan's industries in metal fasteners, iron and steel, and aluminum are expected to be affected.

Considering the complexity of the CBAM rules and the requirement of expertise in dealing with the rules, the ministry said that it will have personnel stationed in the EU starting early next year to keep abreast of the latest developments and to participate in related negotiations.

The ministry added that it is to invite a group of members from the industry, environmental groups, and experts to visit the EU next year to help the related stakeholders build up knowledge on carbon pricing and to be on the same page in future discussions concerning domestic CBAM-directed measures.

The delegation currently visiting the EU is led by Minister of Environment Peng Chi-ming (彭啟明) and with members from the ministry's Climate Change Administration.