Designation of High Carbon Leakage Risk Industries Implemented: Steel, Cement Among 17 Sectors Eligible for Up to 80% Carbon Fee Reduction
- STIC CEGIR
- Dec 30, 2025
- 1 min read
Taiwan Ministry of Environment (MOENV) recently released a draft guideline for the “Recognition Principles for High Carbon Leakage Risk Industries,” listing 17 sectors, including steel, cement, petrochemicals, glass, and printed circuit boards, as eligible for substantial carbon fee reductions. Starting in 2026, enterprises within these sectors can receive up to 80% exemption on carbon fees, meaning they would only need to pay 20% of the standard rate. With the basic carbon fee set at NT$300 per metric ton, qualified industries could pay as little as NT$10 per ton. The system, modeled after South Korea’s methodology, calculates risk based on trade intensity an emission intensity. Companies facing intense international competition or whose carbon fees represent a high percentage of gross profits may also apply individually. Of the 465 facilities subject to carbon fees, 262 fall under the high carbon leakage risk category, reducing expected carbon revenue from NT$6 billion to around NT$4-4.45 billion.
Despite MOENV’s assertion that the policy prevents industrial relocation and aligns with global trends, environmental groups like the Taiwan Climate Action Network have voiced concerns about excessive exemptions. Researcher Lin Yu-Hsuan warned that over 80 million metric tons of emissions might be excluded from carbon fee obligations, potentially undermining Taiwan’s climate investment capacity and hindering compatibility with the EU’s Carbon Border Adjustment Mechanism (CBAM). Lin called for regular review of industry classifications, transparency in assessment formulas, and the implementation of reimbursement mechanisms if company profits improve, to maintain fairness and ensure actual emission reduction outcomes.
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