Taiwan emits more than 25,000 tons of carbon emissions, and more than 500 emission sources will pay carbon fees. The Ministry of Environment proposed on the 3rd that operators can deduct 25,000 metric tons of emissions before calculating. The environmental group criticized it as giving operators a free fee of 25,000 tons. Carbon emission quotas. The Green Citizen Action Alliance pointed out that if the carbon fee rate is 300 to 500 yuan per ton, my country will collect 3.7 to 6 billion yuan less in carbon fees every year. The Ministry of Environment responded that income tax and air pollution charges have similar practices, and it will respect the opinions of environmental groups and communicate with all walks of life.
The Environmental Protection Group unanimously approved the Ministry of Environment to send 25,000 tons of "free carbon emission" quota
Large carbon emitters will pay carbon fees in 2025 based on the results of this year's (2024) inventory. However, the progress of the relevant sub-laws is not as expected. On the 3rd, the Ministry of Environment held a "Exchange Symposium on the Progress of Carbon Fee Collection Sub-Laws." There is still no carbon fee rate proposed, but for the first time, the calculation method of "emissions deducted by 25,000 metric tons" multiplied by the rate was introduced for the first time, which caused dissatisfaction among civil society groups present.
Shen Yizhen, a commissioner of the Green Citizen Action Alliance, said that the deduction of 25,000 tons is equivalent to giving "free emission quotas" to the industry, which may reduce the pressure on the industry to reduce carbon emissions. He also pointed out that if 500 emission sources charge 300 to 500 yuan per ton of emissions, my country's carbon fee will be reduced by 3.7 to 6 billion yuan. In addition, carbon fees are charged on individual factories, so companies with more factories will receive more free quotas, making it easier for companies to avoid carbon fees by scheduling production lines.
Chen Yonghui, leader of the climate change group of the Wilderness Conservancy, said that if the tax is reduced, the carbon fee may cover a lower rate of the country's overall emissions. According to the Ministry of Environment, before the tax reduction of 25,000 tons, the carbon fee can cover approximately 55 to 601 TP3T emissions nationwide. If the tax is really reduced by 25,000 tons, "will not even 50% of the tax be collected?"
Regarding the carbon fee coverage rate, the director of the Climate Agency, Cai Lingyi, responded with World Bank data. The global average is only about 25%, which should not be low in my country. However, World Bank data shows that Singapore’s carbon tax coverage rate reaches 80%, and South Korea also has 74%.
The Climate Agency said it would take care of marginal companies such as TSMC and AUO, which have also become "marginal manufacturers."
Cai Lingyi explained that the design of "deducting 25,000 tons" of carbon fees is to prevent manufacturers on the edge of the threshold from being in a situation where "25,100 tons have to be paid in full and 24,900 tons are not paid", and to reduce administrative difficulties, and pointed out that income tax , air pollution fees have similar practices.
Zhao Jiawei, director of the Taiwan Climate Action Network Research Center, still questions that if we only want to solve the problem of edge manufacturers, "How can it be universally applicable to all 500 manufacturers?" And TSMC, AUO and other companies that are on the edge of 25,000 metric tons have Market competitiveness does not require free quotas.
Allowing carbon rights to be deducted from carbon fees: non-additive “junk carbon rights” are included in the list
In addition to the carbon fee algorithm, the Ministry of Environment also confirmed at the meeting that foreign carbon rights recognized by the government can deduct carbon fees within the 5% quota; domestic voluntary reduction projects, offset projects, and advanced projects are also three types of carbon rights. A certain percentage of carbon fees can be deducted, but the "early project" can only be used for emissions in 2024 and 2025.
Lin Yuxuan, a researcher at Taiwan's Climate Action Network Research Center, criticized this. Years ago, the Environmental Protection Agency's standards for approving more than 60 million tons of "preliminary projects" were loose and non-additional, which was tantamount to "garbage carbon rights"; if they were all used to offset carbon fees , will weaken the effectiveness of carbon fees and also impact the value of other domestic carbon rights. As for foreign carbon rights, they can only be exchanged after the carbon fee rate rises to a certain level to avoid affecting the carbon rights market.
Enterprises that work hard to reduce carbon can enjoy carbon fee discounts. How to set "effort targets"?
In terms of carbon fee preferential rates, the Ministry of Environment has also proposed statutory "specified targets". Businesses that meet the carbon reduction standards will be able to obtain discounts through the "Autonomous Carbon Reduction Plan". However, the Ministry of Environment is still negotiating with various sectors on how to set the standards. .
Zhao Jiawei pointed out that the Ministry of Environment currently links the "specified target" to my country's "Nationally Determined Contribution" (NDC) for 2030, that is, reducing emissions by 23 to 25% in 2030. He pointed out that the public has repeatedly pointed out that this goal is backward. If the Ministry of Environment continues to set it according to this goal, it may be difficult to accelerate industrial carbon reduction through voluntary reductions, and it will also be difficult to implement polluter pays. The "specified targets" of the Ministry of Environment should be increased following the upcoming "third phase control targets" (2026 to 2030) or future NDCs.
Zhao Jiawei also reminded that the government should abide by the "Science-Based Reduction Target" (SBTi) when granting preferential rates. However, currently coal and petroleum products and other industries do not have internationally recognized targets, and it is difficult to cite overseas data. Grants to related industries should be suspended. Any offers.
Even if the industry already has SBTi internationally, the Ministry of Environment should not relax standards due to industry lobbying. He specifically named China Steel. China Steel only promised to reduce carbon emissions by 25%, but the international community has already set a carbon reduction target of 35 to 42% for the steel industry in 2030. Carbon amplitude.
Source: Environmental Information Center
