Industrial Federation Warns Air Pollution Law Amendment Could Make Businesses 'Legal Today, Illegal Tomorrow'

Taipei, June 16 (Central News Agency reporter Tseng Yun-ting) — In response to the Legislative Yuan's recent deliberation and immediate second reading of the draft amendment to the Air Pollution Control Act, NFIO Chairman Pan Chun-jung stated today that the industrial sector does not fear strict air pollution standards, but rather fears that inconsistent regulations could turn the system itself into the greatest risk for business operations, leading to situations where companies are 'legal today, illegal tomorrow.' The NFIO once again urges maintaining the current management mechanism and cautions against hastily passing the amendment, which could disrupt supply chain stability and the investment environment.

In a press release issued today, the National Federation of Industrial Organizations pointed out that according to statistics from general air quality monitoring stations nationwide, the proportion of days with an Air Quality Index (AQI) above 100 has declined annually since 2016 (Year 105), with improvement exceeding 60% by 2025 (Year 114). This demonstrates that Taiwan's air pollution control policies have achieved clear results, and the industrial sector remains willing to continue cooperating in promoting environmental sustainability.

However, the NFIO warned that certain provisions in the current draft amendment under review by the Legislative Yuan may lead to inconsistencies between central and local regulatory standards. Specifically, the draft allows local governments to require businesses to improve total emissions and concentration levels of air pollutants, but does not clearly define the conditions for such requirements. This could result in a 'one city, one standard' scenario, where each county or city adopts different criteria, increasing operational risks for businesses.

The NFIO also expressed concern that the draft grants local governments the authority to announce bans on certain fuels, restrict fuel usage, or establish stricter permitting rules through local ordinances. If local governments restrict the use of fuels such as raw coal, fuel oil, or solid recovered fuel (SRF), it could affect the operation of public and private power plants, disrupt energy supply stability, and impact the normal operations of factories and boiler operators.

Furthermore, the NFIO highlighted that the draft limits the extension review period for operating permits of stationary pollution sources to only two months. If local authorities fail to complete the review within this timeframe, businesses may face forced shutdowns. Approximately 8,000 medium and large enterprises across the country rely on operating permits to function, with over half involved in high-tech optoelectronics, semiconductors, petrochemicals, steel, cement, and defense industries. If operations are halted due to procedural delays, it could trigger supply chain disruptions and significant economic losses.

Additionally, the NFIO noted that while the draft's intent to protect public health by allowing local governments to modify original permit conditions during the extension review period 'due to potential health risks' is understandable, the provisions are too vague and could create uncertainty in implementation.

The NFIO emphasized that Article 30 of the current Air Pollution Control Act already balances industrial stability, maintenance of pollution control equipment efficiency, and fairness in administrative reviews. The current system offers flexible permit renewal periods of 3 to 5 years, allows businesses to operate legally during the review period, and prohibits arbitrary changes to renewal content—establishing a regulatory framework with clear norms and stable enforcement.

Chairman Pan stated, 'The industrial sector does not fear strict standards, but we do fear that the system itself could become the greatest risk to business operations. We are especially concerned that different local governments may adopt different rules, leading to situations where a business is legal here today but illegal there tomorrow, leaving companies confused and unable to comply.' He warned that if the system loses consistency and stability, the impact will extend beyond individual factories to the entire supply chain and Taiwan's investment confidence.

The NFIO calls on the government, amid changing international economic conditions and geopolitical risks, to balance industrial development with environmental protection, and to maintain the stability, consistency, and predictability of regulations. It urges the Ministry of Economic Affairs to actively explain the industry's concerns to both ruling and opposition parties during further legislative discussions, advocating for the preservation of the current air pollution control management mechanism to avoid major disruptions to business operations, pollution control efforts, and administrative order. (Edited by Chang Chun-mao) 1150616