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Carbon pricing system to be unveiled this year - Coggle Diagram
Carbon pricing system to be unveiled this year
Taiwan's enterprises
high emission enterprises
account for 54 percent of the nation’s total emissions
comply with government guidelines will be rewarded
small and medium-sized enterprises
are temporarily exempt from carbon taxes
still required to reduce emissions
for all enterprises
During the initial phase of the policy, enterprises will go through a trial period
All enterprises must report their carbon emissions to the government and set corresponding emission reduction targets, which will impact their tax rates
Taiwan's government
Timeline for the carbon price system
September or October this year
Targeted Entities
Taiwanese small and medium-sized enterprises will not be required to pay carbon fees
Taiwan’s top 504 carbon emitters
Compatibility with International Mechanisms
The system will be compatible with the EU’s Carbon Border Adjustment Mechanism
Fee Structure and Incentives
Companies with government-approved reduction plans will be subject to a different rate
The purpose of the carbon pricing system is to incentivize emission reductions in the private sector rather than to generate revenue so various carbon fee credits will be available
Companies will need to report their carbon emissions to the government
Policy Review and Implementation
Regulations on fee collection emission reduction targets and related guidelines will be issued by the end of the year
Interim Measure with a Long-Term Goal
This system is a transitional solution, with plans to develop a cap-and-trade system in the future to more effectively utilize market mechanisms for regulating emissions
The government will study the carbon tax models of other East Asian countries such as Japan and Singapore to design a system tailored to Taiwan's needs
other countries
European Union
The Carbon Border Adjustment Mechanism will take effect in 2026
compatible with Taiwan's pricing system
Japan and Singapore
will study the carbon tax schemes of these countries to develop a cap-and-trade system suitable for Taiwan