Taipei: The Ministry of Environment (MOENV) has unveiled a list of industries eligible for significant carbon fee reductions, with companies that have approved self-determined reduction plans able to decrease their carbon fees by up to 80 percent.

According to Focus Taiwan, the announcement was made in a statement that outlined the “review principles for identifying carbon fee payers as high carbon leakage risk entities” draft. This draft identifies two categories of companies eligible for the fee adjustments. The first category includes 17 industries considered at high risk of carbon leakage. These industries span a wide range, including steel, concrete, oil refining, chemical materials, and others like computers and peripheral equipment manufacturing.

The second category pertains to entities whose annual carbon fees surpass 30 percent of their gross profit or those recording negative gross profits. It also includes industries whose main products face anti-dumping duties imposed by the Ministry of Finance or are significantly impacted by U.S. reciprocal tariffs expected in 2025-2026.

The MOENV has stipulated that companies seeking eligibility for high carbon leakage considerations must prepare and submit relevant documentation to the ministry by January 31 of the fee payment year. These applications will be reviewed collaboratively by teams from both the MOENV and the Ministry of Economic Affairs.

This development aligns with Taiwan’s carbon fee program, which became effective this year. Under this program, companies emitting more than the 25,000-metric-ton annual threshold are required to pay NT$300 (US$9.50) per tonne of carbon dioxide emitted. However, companies with approved self-determined reduction plans by the MOENV can benefit from reduced fees of NT$100 or NT$50 per tonne.

Industries identified as high risk for carbon leakage can further reduce their fees by 80 percent, a measure aimed at preventing carbon leakage. Carbon leakage occurs when companies relocate to regions with less stringent climate policies, potentially increasing global greenhouse gas emissions.

The MOENV has noted that the draft guidelines were inspired by carbon leakage risk assessment methods used by the European Union and South Korea. The draft will be available for public comment for 14 days before it is finalized.