Legislature Passes 'Resource Circulation Promotion Act' to Accelerate Circular Economy

Central News Agency, Taipei, June 2. The Legislative Yuan passed the amendment to the 'Resource Recycling and Reuse Act' today, renaming it the 'Resource Circulation Promotion Act.' The scope of management has been expanded to cover the entire product lifecycle—from design and production to use and recycling—and a regulatory sandbox mechanism has been introduced. This is the most significant amendment since the law was enacted in 2002. The core of the amendment is 'circulation,' focusing on national resource circulation planning, inter-ministerial coordination, and the adoption of green design principles. To promote resource circulation, the act provides tax incentives and financing support for R&D and equipment investment. The sandbox mechanism allows for temporary exemptions from certain legal requirements to foster innovation in resource circulation technology. Penalties for violations range from NT$12,000 to NT$150,000, with severe cases facing business suspension. The act takes effect upon promulgation, with some provisions effective in two years.