Taiwan Carbon Pricing: From Zero To Net Zero?
With climate change, many countries have formulated many policies about carbon reduction. Resulting from the CBAM draft of the European Union, China, the United States, and other countries have also announced related policies, such as the national carbon emissions trading market, carbon tariff, and other carbon pricing mechanisms. Taiwan, however, has no practical regulations and measures to help reduce GHG emissions except for the "carbon fee" mentioned in the draft amendment to the GHGs Emission Reduction and Management Act (溫管法). As a result, Taiwan will only be the one to be dominated when various policies to reduce GHG emissions are issued internationally.
In the face of such difficulties, China Steel Corporation makes a policy ahead of the government, decided to increase the price of exports, by imposing a tax on the cost of carbon emissions from next year. While the added price depends on the carbon footprint of the product. China Steel Corporation’s action follows Tata Steel Ltd.’s step and will be the first steel industry in Asia to impose a carbon surcharge.
For Taiwan, this is undoubtedly a big breakthrough in carbon pricing policy, after all, reducing GHG emissions is still a matter of individual enterprises to start.