A carbon pricing mechanism that would charge big emitters is to be designed based on the EU’s new carbon bill, as long as the Environmental Protection Administration’s (EPA) proposed amendment to the greenhouse gas act is approved in the next legislative session, EPA Minister Chang Tzi-chin (張子敬) said yesterday.
Chang told a meeting of the legislature’s Economics Committee that a revision of the Greenhouse Gas Reduction and Management Act (溫室氣體減量及管理法) — which would be renamed the Climate Change Act and is due later this month — would include a carbon pricing mechanism, along with a net-zero target for 2050.
If the amendment is approved by the Legislative Yuan in the next session, the EPA would draft detailed regulations that would likely take effect in 2023.
Given the EU’s proposed Carbon Border Adjustment Mechanism, which seeks to reduce carbon emissions by 55 percent by 2030, Taiwan cannot indefinitely delay formulating a carbon pricing mechanism, as it would lose its bargaining power in trade negotiations with the EU, Chang added.
The proposal plans to start by charging businesses that emit more than 25,000 tonnes of carbon per year — this would account for 80 percent of Taiwan’s total carbon emissions.
Small and medium-sized enterprises would not be included in the early stage, but a rating system would be established to help them reduce carbon emissions and mitigate their negative impact.
The price range has yet to be finalized, but the EPA is following global trends and communicating with stakeholders to find best solutions for Taiwan, Chang said.
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