Taiwan brought in its first carbon fee revenue in May, totaling roughly NT$4.97 billion (about US$169 million). According to remarks attributed to Tsai Ling-yi, head of Taiwan’s climate change administration within its environment ministry, more than half of the collected funds will flow back to local governments and businesses to support emissions-cutting efforts.
Of the total, NT$1.71 billion is earmarked for direct subsidies to companies and local governments, while a larger NT$3.26 billion will fund loan guarantees and interest-rate subsidies. Authorities said the money will be prioritized for building energy-efficiency upgrades, low-carbon transportation, and industrial decarbonization projects.
The carbon fee is currently Taiwan’s primary carbon-pricing tool, and officials reiterated plans to pilot a separate emissions trading system in 2026.
Carbon Market Context
- Taiwan’s approach — a carbon fee paired with revenue recycled into industrial and local decarbonization subsidies, ahead of a planned emissions trading pilot — fits a broader pattern across Asian jurisdictions of using compliance carbon pricing to fund domestic abatement investment rather than treating it purely as a revenue measure.
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