Taiwan to launch own carbon border tax and trading scheme

According to a November 2 report by Radio Taiwan International, President Lai Ching-te said the government is preparing a carbon emissions trading scheme together with a Taiwanese counterpart to the Carbon Border Adjustment Mechanism (CBAM) operated by the European Union. The aim, he explained, is to help domestic companies comply with global climate standards.

Overseas markets are tightening their climate requirements on Taiwanese exporters, and the island has already introduced a carbon fee system. To prevent carbon leakage, the EU's CBAM obliges importers of certain carbon-heavy goods to account for the emissions embedded in them. Lai said the government hopes businesses will treat the 2050 net-zero transition, and the pressure that comes with it, as a chance to boost their competitiveness.

Lai made the remarks to representatives of companies honoured at the eighth National Enterprise Environmental Protection Awards.

"With the carbon fee system now officially in place, we are carefully planning a Taiwan version of CBAM and a carbon emissions trading system. We hope to help industries connect with international standards and turn the pressure of transition into a driving force for competitiveness," said Lai, Radio Taiwan International.

According to Lai, the winning companies cut electricity consumption by more than 1.6bn kilowatt-hours last year and lifted their use of renewable energy by 131%.

He pointed to Yamaha Motor Taiwan, which moved to reusable steel packaging for its exports and works with 85 suppliers. He also cited E.SUN Bank and Chang Hwa Bank, which run carbon-pricing and carbon-assessment programmes aimed at smaller firms.

Chi Mei Medical Center and Far Eastern SOGO's Tianmu store were among the winners recognised for using artificial intelligence to cut energy use. Ecotour Taiwan combined low-carbon tourism with conservation work and local development.

Lai said the National Climate Change Committee would keep backing companies and help the island's supply chains shift towards greener practices. He called on businesses to pass on what they had learned and turn sustainability into a long-term advantage for future generations.