Taiwan may start collecting carbon emission fees from businesses as early as 2024 to better align with regulations of its biggest international trade partners. That’s the word from Taiwan’s Environment Minister Chang Tzi-chin on Wednesday.
Chang says Taiwanese authorities want to amend emissions rules as quickly as possible, so that Taiwanese manufacturers can pay carbon fees domestically. This is to conform with sets of rules like the EU’s upcoming Carbon Border Adjustment Mechanism, which is a type of carbon tariff that aims to prevent carbon leakage. Carbon leakage occurs when reduction of emissions in a country with stricter rules leads to increased emissions in manufacturing countries with fewer emission controls.
Chang says that the biggest challenge in implementing the new rules will be increased workload. But he says that having a domestic system of carbon fees will put Taiwan in a better position during emission negotiations with the EU and other trade partners with similar environmental measures.