Minister of Environment Xue Fusheng said today (20th) that a carbon fee review committee will be formed at the end of this month with 21 members, including six representatives from civic groups, and a draft carbon fee rate will be released at the end of March. He revealed that if businesses adopt the SBTi EU carbon reduction standards in the future, they may be able to enjoy a "very, very large" discount rate of more than half, which will be quite attractive to the industry.
Taiwan's major carbon emitters will begin paying a carbon fee next year (2025), but the draft rate and preferential measures have yet to be made public. The Ministry of Environment hosted a media dinner this afternoon, during which Xue Fusheng, speaking to the media, stated that the ministry is currently selecting 21 members for the "Carbon Fee Review Committee," including six representatives from civic groups.
Xue Fusheng said that they would consider the balance of private roles and invite public associations to join the discussion, "which should not be limited to environmental groups." The members of the review committee will be elected at the end of February, and two review meetings will be held. The relevant drafts such as carbon fee rates and preferential rates will be launched at the end of March and announced after a two-month discussion period.
Regarding the controversy surrounding the 25,000-ton exemption in the "Carbon Fee Designated Reduction Targets and Voluntary Reduction Plan Review Measures" (hereinafter referred to as the draft preferential rate), Xue Fusheng stated that the original intention was to avoid the unfair situation of "24,900 tons exempted from tax and 25,100 tons fully taxed." The Ministry of Environment considered this to be very reasonable and received majority approval. When asked about objections from civil society groups, he deflected, "This part (the draft) has not yet been finalized; it is only in the stage of collecting opinions."
Xue Fusheng further explained the draft preferential rates. If businesses adopt the EU's "Science-Based Targets" (SBTi) carbon reduction standards, "the discount we give them will be very, very large." For those who cannot adopt SBTi, the Ministry of Environment will also consider different industry types and set specific targets. If they are achieved, discounts will be given. "Of course, the discount will be slightly lower."
As for how much of a "very, very large" discount would be? Xue Fusheng said it "won't be waived," but he didn't rule out a 50% cut, "or even more than 50%." He also emphasized that it's too early to discuss discounts, as the results of the carbon fee review must be considered.
Xue Fusheng noted that the domestic petrochemical, steel, and cement industries could face impacts due to the ECFA issue, and expressed hope that the carbon fee review committee would consider both subjective and objective factors to determine a reasonable rate. He emphasized that the economic situation, the potential electricity price increase in April, and even the current caretaker cabinet period would not affect the pace of carbon fee promotion.
Source: Environmental Information Centre
