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Taiwan aims to follow European model for carbon tax

Taiwanese industry representatives are urging authorities to develop a mechanism similar to Europe's Carbon Border Adjustment Mechanism (CBAM).

Taiwan aims to follow European model for carbon tax

Taiwanese industry representatives are urging authorities to develop a mechanism similar to Europe's Carbon Border Adjustment Mechanism (CBAM) to protect local industries from the negative impact of importing carbon-intensive products.

Taiwan's Environment Minister, Peng Qi-Ming, stated that specific details of the mechanism would not be revealed until mid-2025. The ministry is set to collaborate with the economy and finance ministries on this matter. Furthermore, Taiwan has initiated discussions with regulators in the EU and Japan to ensure that its carbon levy aligns with international regulations.

Peng Qi-Ming highlighted that a review of corporate ESG reports shows that many Taiwanese companies are more ambitious in reducing carbon emissions than the government's current plans. Some businesses aim to cut emissions by 40% by 2030, which surpasses the national goal of a 24% reduction.

On October 7, the Ministry of Environment approved a carbon fee of NT$300 ($9.32) per ton, with reduced rates for certain emission sources.

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