Ministry of Environment: Carbon Pricing Aims to Drive Industrial Carbon Reduction, Not Market Trading Volume
Taiwan's Ministry of Environment emphasized that the primary goal of its carbon pricing system is to drive industrial transformation and achieve substantial emissions reductions, rather than to increase carbon market trading volume. High-emitting companies are required to pay carbon fees by the end of May this year based on their previous year's emissions, with a pilot Emissions Trading System (ETS) planned for 2027-2028.
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- 📰 Published: May 12, 2026 at 15:08
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Central News
(Central News Agency reporter Chang Hsiung-feng, Taipei, 12th) Major emitters will pay their first carbon fees this year, and some media have pointed out that the carbon credit配套 (supporting measures) are slow. The Ministry of Environment stated today that the core of Taiwan's carbon pricing system is to drive industrial transformation and achieve substantial emissions reductions, rather than pursuing carbon market trading volume.
According to the "Carbon Fee Collection Regulations," electricity, gas supply, and manufacturing industries with annual greenhouse gas emissions exceeding 25,000 metric tons must pay carbon fees by the end of May this year based on their total emissions from the previous year. Carbon fees were launched last year, and this year marks the first actual payment phase.
The Ministry of Environment today issued a press release stating that Taiwan's current carbon pricing system adopts a dual approach of carbon fees and voluntary reductions, driving various businesses to jointly reduce carbon. Considering that the system was launched last year, a phased rate increase from low to high has been set to reduce the impact on industries. The Ministry will continue to review industrial carbon reduction effectiveness and dynamically adjust carbon fee rates.
The Ministry of Environment further explained that voluntary reductions are a supporting measure for the carbon fee system. Since the generated reduction credits can offset carbon fees, they follow international standards to ensure that reduction credits are measurable, reportable, verifiable, additional, permanent, and without double counting, thereby avoiding "greenwashing" controversies.
The Ministry of Environment pointed out that it has publicly reviewed 150 reduction methodologies under the "Greenhouse Gas Voluntary Reduction Project Management Regulations," including 8 newly revised natural carbon sink methodologies (afforestation, forest/bamboo forest management, soil management, mangrove afforestation, and seagrass restoration). 40 reduction projects (including 5 afforestation projects) have been registered and approved, and credits will be generated successively in the future. Related reduction methodologies and approved projects are all publicly available on the "Greenhouse Gas Voluntary Reduction and Offset Information Platform" for public access.
Regarding carbon market trading, the Ministry of Environment emphasized that with the launch of the carbon fee system, businesses holding reduction credits are expected to prioritize using them to offset their own carbon fees, and some businesses plan to use reduction credits for their own environmental impact assessment commitments for greenhouse gas increment offsets. Therefore, a lower carbon market trading volume is within expectations.
The Ministry of Environment finally emphasized that Taiwan's carbon pricing path refers to international reduction trends and consensus, with the goal of substantial reductions. Industries should prioritize process improvement, energy efficiency enhancement, and other self-carbon reduction and transformation measures. The offsetting of reduction credits should be regarded as a last resort to achieve net-zero, and the cart should not be put before the horse.
In addition, to further vitalize Taiwan's carbon market, the Ministry of Environment has planned to introduce a pilot Cap-and-Trade and Emissions Trading System (ETS) from 2027 to 2028. This will stimulate domestic carbon trading and connect Taiwan's industries with international climate action. (Edited by: Li Heng-shan) 1150512
(Central News Agency reporter Chang Hsiung-feng, Taipei, 12th) Major emitters will pay their first carbon fees this year, and some media have pointed out that the carbon credit配套 (supporting measures) are slow. The Ministry of Environment stated today that the core of Taiwan's carbon pricing system is to drive industrial transformation and achieve substantial emissions reductions, rather than pursuing carbon market trading volume.
According to the "Carbon Fee Collection Regulations," electricity, gas supply, and manufacturing industries with annual greenhouse gas emissions exceeding 25,000 metric tons must pay carbon fees by the end of May this year based on their total emissions from the previous year. Carbon fees were launched last year, and this year marks the first actual payment phase.
The Ministry of Environment today issued a press release stating that Taiwan's current carbon pricing system adopts a dual approach of carbon fees and voluntary reductions, driving various businesses to jointly reduce carbon. Considering that the system was launched last year, a phased rate increase from low to high has been set to reduce the impact on industries. The Ministry will continue to review industrial carbon reduction effectiveness and dynamically adjust carbon fee rates.
The Ministry of Environment further explained that voluntary reductions are a supporting measure for the carbon fee system. Since the generated reduction credits can offset carbon fees, they follow international standards to ensure that reduction credits are measurable, reportable, verifiable, additional, permanent, and without double counting, thereby avoiding "greenwashing" controversies.
The Ministry of Environment pointed out that it has publicly reviewed 150 reduction methodologies under the "Greenhouse Gas Voluntary Reduction Project Management Regulations," including 8 newly revised natural carbon sink methodologies (afforestation, forest/bamboo forest management, soil management, mangrove afforestation, and seagrass restoration). 40 reduction projects (including 5 afforestation projects) have been registered and approved, and credits will be generated successively in the future. Related reduction methodologies and approved projects are all publicly available on the "Greenhouse Gas Voluntary Reduction and Offset Information Platform" for public access.
Regarding carbon market trading, the Ministry of Environment emphasized that with the launch of the carbon fee system, businesses holding reduction credits are expected to prioritize using them to offset their own carbon fees, and some businesses plan to use reduction credits for their own environmental impact assessment commitments for greenhouse gas increment offsets. Therefore, a lower carbon market trading volume is within expectations.
The Ministry of Environment finally emphasized that Taiwan's carbon pricing path refers to international reduction trends and consensus, with the goal of substantial reductions. Industries should prioritize process improvement, energy efficiency enhancement, and other self-carbon reduction and transformation measures. The offsetting of reduction credits should be regarded as a last resort to achieve net-zero, and the cart should not be put before the horse.
In addition, to further vitalize Taiwan's carbon market, the Ministry of Environment has planned to introduce a pilot Cap-and-Trade and Emissions Trading System (ETS) from 2027 to 2028. This will stimulate domestic carbon trading and connect Taiwan's industries with international climate action. (Edited by: Li Heng-shan) 1150512