Taiwan’s Carbon Border Adjustment Mechanism (CBAM) is set for a 2025 launch, marking a significant step towards regulating carbon emissions within Taiwan’s industries. The Legislature’s Economics Committee recently convened a session with leaders from the Environment and Economic Ministries to discuss how Taiwan’s carbon fee system will impact local businesses and how the government can best support this transition. This dialogue aims to provide clarity for enterprises on compliance requirements and prepare them for the upcoming changes under the new mechanism.

The Environment Ministry explained that the CBAM allows high-emission companies to reduce their carbon footprint by investing in carbon offsets through partnerships with lower-emission firms. Taiwan’s approach to carbon pricing aligns it with global trends, where 75 countries and regions have adopted similar mechanisms. Among Asian countries, Taiwan joins others actively engaging with carbon pricing policies, while nations like China, South Korea, and Singapore have not yet signaled immediate plans to implement these measures. Meanwhile, the EU’s CBAM remains in a transitional phase, with a complete rollout anticipated by 2027.

Deputy Environment Minister Shih Wen-chen emphasized Taiwan’s goal of establishing a trusted and transparent mechanism to prevent trade friction. Taiwan’s CBAM will initially focus on sectors with high carbon leakage risks, such as steel and cement, offering preferential rates to these industries during an adjustment period.

For organizations looking to navigate this evolving regulatory landscape, CBAM Reports provides tailored insights and compliance strategies, helping businesses understand and meet CBAM requirements effectively. Request a call and we will get back to you with a solution.

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