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Carbon Fee Payments Begin in May; First-Year Revenue Estimated at NT$4.5 Billion  

Release Date : 2026-04-21

$4.5 billion. This revenue will be managed under the Greenhouse Gas Management Fund, with approximately NT$4.05 billion prioritized for five major areas, including carbon reduction technologies, local reduction efforts, and a just transition. Regarding the carbon fee rate for next year, there are no plans for an increase at this time.

According to the Ministry of Environment’s "Regulations Governing Carbon Fee Collection," electricity and gas supply industries, as well as manufacturing industries with annual greenhouse gas emissions reaching 25,000 metric tons of CO2e or more, must pay carbon fees in accordance with the regulations. The payment schedule commences in the year following the effective date of the announced fee rate, with companies required to pay for the previous year’s total annual emissions by the end of May each year.

Tsai Ling-yi, Director-General of the Climate Change Administration under the Ministry of Environment, pointed out that the first-year revenue from carbon fees is estimated at NT$4.5 billion. Based on a resolution from the Greenhouse Gas Management Fund Management Committee last year, expenditures will focus on five directions: promoting business related to the Climate Change Administration; investing in the adoption of carbon reduction technologies by enterprises and supporting local governments in executing reduction work; promoting climate change adaptation policies; assisting various ministries in advancing a just transition; and providing financial support mechanisms, such as interest subsidies and credit guarantees for net-zero transition loans.

Under the "Regulations Governing Carbon Fee Collection," the current carbon fee is NT$300 per metric ton. Entities subject to the fee may submit voluntary reduction plans, choosing reduction measures and the corresponding applicable discounts, such as Fee Rate A at NT$50 per metric ton or Fee Rate B at NT$100 per metric ton.

Regarding the review of high carbon leakage risks, which is critical for a 20% discount on carbon fees, the Ministry of Environment stated that 234 plants submitted applications. A review committee composed of representatives from the Ministry of Environment, the Ministry of Economic Affairs, and experts and scholars has reviewed 224 plants, accounting for approximately 110 million metric tons and 76% of regulated emissions.

Tsai Ling-yi stated that of the 430 plants that submitted voluntary reduction plans last year, 403 plants had been approved as of the 10th. It is estimated that 47.45 million metric tons of carbon will be reduced by 2030 compared to 2025.

Regarding whether there are plans to increase the carbon fee next year, Tsai said that over 90% of factories are currently willing to submit voluntary reduction plans, with the intensity of carbon reduction exceeding the originally anticipated 37 million metric tons. This indicates that the current carbon fee rate has already achieved a guiding effect.

Tsai Ling-yi pointed out that the current focus of the carbon fee policy will be on encouraging enterprises to actually invest in carbon reduction actions. In the short term, adjusting the fee rate is not the priority; rather, the focus is on ensuring the stable implementation of the system and avoiding excessive pressure that could burden the industry.

Source: https://www.ctee.com.tw/news/20260421700089-439901
Written by: Commercial Times
Date: 2026.4.21