Taiwan's First Carbon Fee Revenue Reaches NT$4.97 Billion; Semiconductor Industry Bears Largest Share
Taiwan's Ministry of Environment announced the results of its first carbon fee collection, totaling NT$4.97 billion. Plans allocate approximately NT$2 billion for subsidizing emission reduction and adaptation research by businesses and local governments, and NT$500 million for corporate loan subsidies for decarbonization. The semiconductor industry is the largest contributor, with TSMC alone accounting for 33 facilities. The minister also indicated a test of the Emissions Trading System (ETS) platform would begin by the end of the year.
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- 📰 Published: June 3, 2026 at 13:04
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(Central News Agency, Taipei, June 3) The Ministry of Environment today announced the results of the first carbon fee payment. A total of 461 facilities (240 companies) that are major carbon emitters were required to pay, with the final collection amount reaching NT$4.97 billion. Among these 461 facilities, the semiconductor manufacturing industry accounted for 123 facilities (with TSMC alone having 33 facilities), totaling approximately NT$2.2 billion.
Tsai Ling-yi, Director of the Climate Change Administration under the Ministry of Environment, stated that according to the Climate Change Response Act, the carbon fee must be used exclusively for greenhouse gas reduction and climate change adaptation research, and must be deposited into the Greenhouse Gas Management Fund.
Tsai said that after discussion by the committee members of the Greenhouse Gas Management Fund Management Committee, approximately NT$2 billion was preliminarily approved to subsidize businesses and local governments for greenhouse gas reduction or adaptation research. The Ministry of Environment is currently drafting relevant regulations, which will be released soon for public discussion.
Additionally, NT$500 million will be provided to these businesses for credit guarantees and interest subsidies. Tsai cited the steel industry as an example, which has expressed a need for bank loans to improve manufacturing processes and hopes to apply for carbon fee subsidies. The Financial Supervisory Commission (FSC) has already recognized companies' voluntary reduction plans as priority loan items under the Green Financial Action Plan 3.0. Therefore, the Ministry of Environment has allocated funds and is currently drafting relevant guidelines.
Tsai also mentioned that regarding the just transition, which is of public concern, the competent authority is the National Development Council (NDC). The NDC is currently asking all relevant ministry authorities to inventory their carbon reduction efforts related to just transition. If assistance is needed, ministries can submit plans to be funded by the carbon fee.
Minister of Environment Peng Chi-ming added that to properly utilize the carbon fee, the committee members of the Greenhouse Gas Management Fund Management Committee have selected several members with financial and economic backgrounds to join the discussions. He estimated that the NT$500 million in interest subsidies could effectively achieve an improvement benefit of approximately NT$3 billion.
Peng pointed out that this year marks the first time companies have paid the carbon fee, so there is still a gap between the pricing and the actual market price. However, social communication remains the most important aspect. Many environmental groups hope for a higher carbon fee, but since this is the first time charging for carbon emissions, the approach is to first establish the system and then improve it.
Peng emphasized that according to the plan, the fee will be adjusted periodically, and the carbon price will continue to rise, which is a global trend.
Peng said that next, through a cap-and-trade system (ETS), the carbon price will be brought back to its proper market level. It is expected that testing of the ETS platform will begin before the end of the year, with companies having higher carbon emissions joining first, allowing them to learn about carbon trading directly on the ETS platform. (Editor: Chang Ming-kun) 1150603
Tsai Ling-yi, Director of the Climate Change Administration under the Ministry of Environment, stated that according to the Climate Change Response Act, the carbon fee must be used exclusively for greenhouse gas reduction and climate change adaptation research, and must be deposited into the Greenhouse Gas Management Fund.
Tsai said that after discussion by the committee members of the Greenhouse Gas Management Fund Management Committee, approximately NT$2 billion was preliminarily approved to subsidize businesses and local governments for greenhouse gas reduction or adaptation research. The Ministry of Environment is currently drafting relevant regulations, which will be released soon for public discussion.
Additionally, NT$500 million will be provided to these businesses for credit guarantees and interest subsidies. Tsai cited the steel industry as an example, which has expressed a need for bank loans to improve manufacturing processes and hopes to apply for carbon fee subsidies. The Financial Supervisory Commission (FSC) has already recognized companies' voluntary reduction plans as priority loan items under the Green Financial Action Plan 3.0. Therefore, the Ministry of Environment has allocated funds and is currently drafting relevant guidelines.
Tsai also mentioned that regarding the just transition, which is of public concern, the competent authority is the National Development Council (NDC). The NDC is currently asking all relevant ministry authorities to inventory their carbon reduction efforts related to just transition. If assistance is needed, ministries can submit plans to be funded by the carbon fee.
Minister of Environment Peng Chi-ming added that to properly utilize the carbon fee, the committee members of the Greenhouse Gas Management Fund Management Committee have selected several members with financial and economic backgrounds to join the discussions. He estimated that the NT$500 million in interest subsidies could effectively achieve an improvement benefit of approximately NT$3 billion.
Peng pointed out that this year marks the first time companies have paid the carbon fee, so there is still a gap between the pricing and the actual market price. However, social communication remains the most important aspect. Many environmental groups hope for a higher carbon fee, but since this is the first time charging for carbon emissions, the approach is to first establish the system and then improve it.
Peng emphasized that according to the plan, the fee will be adjusted periodically, and the carbon price will continue to rise, which is a global trend.
Peng said that next, through a cap-and-trade system (ETS), the carbon price will be brought back to its proper market level. It is expected that testing of the ETS platform will begin before the end of the year, with companies having higher carbon emissions joining first, allowing them to learn about carbon trading directly on the ETS platform. (Editor: Chang Ming-kun) 1150603