Taiwan: Industries Weigh In on Carbon Fee Formula

Green Taiwan
Green TaiwanImage Source: Oreaco


Taiwan's industry reacts divergently to the Ministry of Environment's carbon fee formula, with some lauding its fairness for competitiveness, while others express concerns. The government's provision of "free allowances" for high emitters raised questions about fairness, especially in comparison to neighboring countries. Environmental groups criticize the approach, labeling it ineffective in driving decarbonization.



The unveiling of Taiwan's Ministry of Environment's carbon fee formula stirred a spectrum of responses across the nation's industries. While some hailed it for fostering fair competition, others raised concerns about its impact and fairness, especially concerning neighboring countries' carbon policies.

Taiwan's Chinese National Federation of Industries praised the formula for promoting fair competition and minimizing penalties for relatively lower emitters. However, concerns arose about the free allowances offered to significant emitters, potentially skewing the competitive landscape.

Debates ensued regarding the implementation's fairness, particularly in terms of imports. Industry insiders highlighted the risks of unfair competition if imported products didn't adhere to similar regulations, potentially harming domestic industries.

Petrochemical and cement industries voiced apprehensions about the fee's potential impact. While some believed the allowances might assist smaller emitters, others raised concerns about the overall impact on larger industries.

Comparisons with neighboring countries' policies emerged, revealing disparities. Concerns were voiced about competitive disadvantage vis-à-vis countries like China, Japan, and South Korea, where carbon fee regulations differ.

Environmental groups criticized the approach, labeling it ineffective in fostering meaningful decarbonization efforts. The pushback emphasized the need for stronger measures to incentivize sustainable practices.

The Ministry of Environment responded to speculations about housing price hikes, refuting claims with estimations aligning with the UN's assessment on the marginal effect of decarbonization on housing prices.


Taiwan's diverse industrial landscape reflects the complexity of implementing carbon fees. While some view the formula favorably, concerns persist about fairness, competitive disparities with neighboring countries, and the effectiveness of the approach in driving meaningful decarbonization.

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