Taiwan Carbon Fee Regulation

Taiwan’s carbon fee system is creating significant opportunities for U.S. companies offering proven solutions in carbon accounting and monitoring, industrial energy efficiency, emissions reduction, and related environmental technologies. These solutions can help meet the expected demand from Taiwanese manufacturers for lowering operating and compliance costs. 

Entering its first year of implementation in 2026, Taiwan’s carbon fee system requires covered power, gas supply, and manufacturing companies with annual greenhouse-gas emissions of at least 25,000 metric tons of carbon dioxide equivalent (CO₂e) to pay fees based on their previous year’s emissions. The standard fee is approximately $9.30 (NT$300) per metric ton of CO₂e. Companies that implement approved voluntary reduction plans and meet designated performance targets may qualify for preferential rates of approximately $3.14 (NT$100) or $1.57 (NT$50) per metric ton.

With 465 factories in Taiwan subject to carbon fees and total covered emissions of approximately 145 million metric tons of CO₂e, the policy is creating a sizable potential market for emissions management, energy efficiency, and related environmental technologies. The Ministry of Environment has approved voluntary emissions-reduction plans for 402 factories, with preferential carbon fees of $1.57–3.14 per metric ton and estimated reductions of 47.45 million metric tons of CO₂e by 2030. Companies that implement approved voluntary emissions-reduction plans may qualify for preferential carbon-fee rates, creating additional incentives for investment in emissions-reduction technologies. These investments could offer U.S. suppliers a competitive advantage in providing proven technologies that enhance productivity and help Taiwan-based companies meet applicable requirements.

For more information, please contact the U.S. Commercial Service in Taiwan: Joyce Tang, Commercial Specialist, Joyce.Tang@trade.gov, or connect with your local U.S. Commercial Service office in the United States to schedule a consultation.