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Taiwan’s carbon fee system recognized by UK to support steel industry competitiveness

1 Sep 2026 16:42 reported by Joy Liu

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Taiwan's carbon fee system has been officially included in the United Kingdom's qualifying carbon pricing scheme list announced by HM Revenue & Customs (HMRC) on August 27. This recognition establishes a foundation for international regulatory alignment, helping Taiwan's steel and aluminum exporters maintain global competitiveness.

The United Kingdom's carbon border adjustment mechanism will formally take effect in 2027 to ensure imported goods face carbon costs comparable to domestic manufacturing. Through the carbon price relief mechanism, Taiwanese enterprises can apply for fee reductions by presenting valid verification documents proving carbon costs were paid domestically, reducing double carbon pricing risks.

Taiwan ranks among only 16 jurisdictions included in the initial phase, joining systems from countries including the European Union, Japan, South Korea, Singapore, and so forth.

Taiwan’s Ministry of Environment officials noted that this British accreditation strengthens Taiwan's negotiating position for future carbon fee deductions with the European Union, where the mechanism covers steel, aluminum, cement, fertilizers, electricity, and hydrogen, with initial certificate surrenders due by September 30, 2027.

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