Taiwan, which has set a goal of reaching net-zero emissions by 2050, will establish a carbon fee system in 2024. The draft paper for the system is expected to be released by the end of the year, following the completion of discussions with companies.
Initially, the carbon fees will be collected from 287 companies and other Taiwanese entities whose annual carbon emissions reach at least 25,000 mt. In addition, the government will also establish carbon tariffs on imports of carbon-intensive products.
Although tax rates are still undecided, the minimum rate is expected to be TWD 100/mt, which is lower than the carbon prices which exceeded €100/mt last year in Europe. In this situation, Taiwanese steel exporters may have to pay the difference under the EU’s Carbon Border Adjustment Mechanism which will come into force in October 2023.
