Taiwan collects nearly NT$5 billion in first carbon fee cycle: MOENV

Taipei, June 3 (CNA) The Ministry of Environment (MOENV) said Wednesday that it collected NT$4.97 billion (US$158.08 million) in Taiwan's first carbon fee collection cycle.

A total of 461 factories operated by 240 companies paid carbon fees, the ministry said. Among them, 123 semiconductor manufacturing facilities contributed about NT$2.2 billion, including 33 factories operated by Taiwan Semiconductor Manufacturing Co. (TSMC).

The electricity supply sector contributed NT$635 million through 19 facilities, while 29 steel plants paid NT$400 million and nine concrete plants contributed NT$130 million, according to the MOENV.

The ministry had initially estimated carbon fee revenue at around NT$4.5 billion. The final amount was higher because some factories that had applied for preferential rates through voluntary emissions reduction plans later withdrew their applications or had them rejected, making them subject to the standard rate of NT$300 per metric ton of carbon emissions, MOENV Climate Change Administration Director-General Tsai Lin-yi (蔡玲儀) said Wednesday.

Tsai noted that 430 factories had applied for preferential rates of NT$50 or NT$100 per metric ton, but 28 either withdrew their applications or had them rejected.

Most rejections were due to proposed emissions reduction measures failing to meet regulatory standards, while some companies withdrew their plans because economic growth and expanded production capacity made their original reduction targets unattainable, she said.

Tsai also said that the MOENV had offered installment payment and deferral options in light of global uncertainties, including ongoing international conflicts, but all affected facilities opted to pay in full.

The Climate Change Response Act stipulates that carbon fee revenue must be allocated to a greenhouse gas management fund and used for emissions reduction and climate change-related research, Tsai said.

According to Tsai, the fund's management committee has approved allocating NT$2 billion to subsidize emissions-reduction projects and climate-adaptation research undertaken by industries and local governments.

Another NT$500 million will be used to provide credit guarantees and interest subsidies for participating industries, she added.

Environment Minister Peng Chi-ming (彭啓明) said carbon reduction costs in the market are estimated at around NT$3,000 to NT$6,000 per metric ton. Based on that benchmark, the NT$4.97 billion collected represents an estimated carbon-reduction value of between NT$150 billion and NT$300 billion.

The semiconductor industry has borne a larger share of the carbon fees because of its strong growth in recent years, Peng said. By contrast, traditional sectors such as textiles have experienced little impact, he added.

Under Taiwan's Regulations Governing the Collection of Carbon Fees, companies that emit at least 25,000 metric tons of carbon dioxide annually are required to pay carbon fees based on their total annual emissions.

The regulations took effect on Jan. 1, 2025. Emissions generated in 2025 were subject to the first round of carbon fee calculations, with May 31, 2026, as the deadline for the first payment cycle.