Taiwan's Ministry of Environment is accelerating efforts to implement a carbon pricing scheme and a Taiwanese Carbon Border Adjustment Mechanism (CBAM) to help industries such as steel adapt to new regulations and counter low-priced imports.

The Ministry will prioritize trial reporting for steel and cement products this year, with a full trial launch planned for 2026 after legal frameworks are complete. They aim to finalize the reporting system by year-end, with formal product carbon emission trial reporting beginning in 2027.

To prevent carbon leakage and maintain competitiveness, Taiwan’s carbon fee regulations already offer a discounted rate (20% of the fee) for industries deemed high-risk for carbon leakage, similar to measures in the EU, South Korea, and Singapore.

The Ministry will continue to monitor international CBAM developments, including the EU's simplified measures and the UK's draft CBAM, to ensure fair competition for Taiwanese industries and importers.