MOENV estimates NT$4.5 billion in inaugural carbon fee collection

Taipei, April 20 (CNA) Taiwan expects to collect around NT$4.5 billion (US$142.8 million) in carbon fees by the end of May as major greenhouse gas emitters face the country's first mandatory payment deadline, the Ministry of Environment (MOENV) said Monday.

The payment window, which runs through May 31, marks the first collection cycle since the carbon fee system took effect on Jan. 1, 2025.

Under the scheme, companies emitting at least 25,000 metric tons of carbon dioxide annually -- mainly in the power, gas supply and manufacturing sectors -- must calculate and pay fees based on their total emissions in 2025.

Based on the latest data from MOENV, about 512-550 companies in Taiwan have been identified as major emitters subject to the first phase of carbon fee collection.

The standard carbon fee rate is NT$300 per metric ton, but firms that submit and obtain approval for voluntary emissions reduction plans can qualify for preferential rates of NT$50 or NT$100 per metric ton.

MOENV data show 430 facilities applied for such plans, with 403 approved. Of those, 64 qualified for the NT$50 rate and 339 for the NT$100 rate, while 27 applications were withdrawn or rejected.

In addition, 224 facilities have been classified as being at high risk of carbon leakage, meaning production could shift overseas due to carbon costs.

These facilities, which include Taiwan Cement Corp. and various electronics firms, represent 76 percent of the 145 million tons of emissions subject to fees this year.

To maintain global competitiveness, companies in this category that also adopt approved reduction plans can apply an adjustment factor of 0.2, effectively reducing their payable fees to 20 percent of the original amount -- equivalent to about NT$10 per ton for those using the lowest preferential rate.

MOENV Climate Change Administration Director-General Tsai Lin-yi (蔡玲儀) said it is estimated first-year revenue will be about NT$4.5 billion, with about NT$4.05 billion earmarked for spending.

Funds will be used to support emissions reduction technologies, local government mitigation and adaptation efforts, climate governance, just transition measures, and financing tools such as interest subsidies for net-zero projects.

The ministry added that companies affected by rising global fuel prices linked to Middle East tensions may apply for extensions or installment payments before the May 31 deadline.