MOENV lists industries eligible for 80% carbon fee reductions

Taipei, Dec. 18 (CNA) The Ministry of Environment (MOENV) on Thursday announced a list of industries eligible for carbon fee adjustments, allowing companies with approved self-determined reduction plans to reduce their carbon fees by up to 80 percent.

In a statement previewing the "review principles for identifying carbon fee payers as high carbon leakage risk entities" draft, the ministry pinpointed two types of such companies.

The first lists 17 industries that are at high risk of carbon leakage, including steel, concrete, oil refining, chemical materials, fats and oils, copper, pulp and paperboard, man-made fiber, plastic, glass, spinning, fabrics, fertilizer, printed circuit board, optoelectronic materials, computers and peripheral equipment, and data storage media units manufacturing.

The second category includes entities whose annual carbon fees exceed 30 percent of gross profit or that record negative gross profit, whose main products are subject to anti-dumping duties imposed by the Ministry of Finance, or whose industries are significantly affected by U.S. reciprocal tariffs in 2025-2026, the statement said.

The MOENV said that companies applying for eligibility for high carbon leakage should prepare relevant documents and submit them to the ministry before Jan. 31 of the fee payment.

The application will then be reviewed by a team formed by the MOENV and the Ministry of Economic Affairs.

Taiwan's carbon fee program took effect this year, which means that emitters exceeding the 25,000-metric-ton annual threshold will begin to pay NT$300 (US$9.50) for every tonne of carbon dioxide discharged.

According to the Regulations Governing the Collection of Carbon Fees, companies with self-determined reduction plans approved by the MOENV will have their fees reduced to NT$100 or NT$50 for every tonne of carbon.

Industries at high risk of carbon leakage with approved self-determined reduction plans can have their fees cut by another 80 percent, in order to prevent carbon leakage, according to the ministry.

Carbon leakage refers to the shifting of carbon dioxide emissions to other countries when companies in jurisdictions with strict climate policies relocate operations to places with weaker regulations, potentially leading to an overall increase in global greenhouse gas emissions.

The MOENV said that the draft took cues from the carbon leakage risk reviewing methods of the European Union and South Korea.

The ministry said the draft will be open for public comment for 14 days before finalization.