Environmental Protection Administration: Carbon Pricing Aims to Drive Industrial Carbon Reduction, Not Market Trading Volume

(Central News Agency, Reporter Zhang Xiongfeng, Taipei, 12th) Major carbon emitters will pay their first carbon fees this year, and some media have pointed out that the current carbon credit配套 (supporting measures) are slow. The Environmental Protection Administration stated today that the core of Taiwan's carbon pricing system is to drive industrial transformation and implement substantial emission 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 of 25,000 metric tons or more must pay carbon fees based on last year's total emissions by the end of May this year. Carbon fees were implemented last year, and this year marks the first actual payment stage.

The Environmental Protection Administration today issued a press release stating that Taiwan's current carbon pricing system adopts a dual-track approach of carbon fees and voluntary reductions, driving various businesses to jointly reduce carbon. Considering that the system was launched last year, a phased fee rate adjustment from low to high was set to reduce the impact on industries. The effectiveness of industrial carbon reduction will continue to be reviewed, and carbon fee rates will be dynamically adjusted.

The Environmental Protection Administration further explained that voluntary reduction is a supporting measure for the carbon fee system. Since the generated reduction credits can offset carbon fees, it follows international standards to ensure that reduction credits are measurable, reportable, verifiable, additional, permanent, and without double counting, thereby avoiding "greenwashing" controversies.

The Environmental Protection Administration pointed out that it has approved 150 reduction methods in accordance with 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). Forty reduction projects (including 5 afforestation projects) have been registered and approved. Credits will be generated successively in the future, and relevant reduction methods and approved projects are publicly available on the "Greenhouse Gas Voluntary Reduction and Offset Information Platform" for public inquiry.

Regarding carbon market trading, the Environmental Protection Administration emphasized that with the implementation of the carbon fee system, businesses holding reduction credits are expected to prioritize using them for their own carbon fee offsets, and some businesses plan to use reduction credits for their own environmental impact assessment commitments for greenhouse gas increment offsets. Therefore, a relatively low carbon market trading volume is within expectations.

The Environmental Protection Administration finally emphasized that Taiwan's carbon pricing pathway refers to international reduction trends and consensus, aiming for substantial reductions. Industries should prioritize their own carbon reduction and transformation measures, such as process improvement and energy efficiency enhancement. The offsetting of reduction credits should be regarded as a last resort to achieve net-zero, and the priorities should not be reversed.

In addition, to further invigorate Taiwan's carbon market, the Environmental Protection Administration has planned to introduce a trial of the Cap-and-Trade and Emissions Trading System (ETS) from 2027 to 2028. This will drive the vitality of domestic carbon trading and lead Taiwan's industries to align with international climate actions. (Editor: Li Henshan) 1150512

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