Summary
Details
- Taiwan
Taiwan's Climate Change Response Act applies to designated greenhouse gas emitters, including major facilities in the electricity, energy, and manufacturing sectors, as well as other organizations subject to greenhouse gas reporting, verification, or carbon fee requirements under Taiwan's implementing regulations.
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Background
The Climate Change Response Act was promulgated on 15 February 2023 following a major revision of Taiwan’s Greenhouse Gas Reduction and Management Act. The legislation formally embeds Taiwan’s net-zero emissions by 2050 objective into law and establishes a framework for setting five-year emissions reduction milestones and sector-specific decarbonization strategies. The Act goes beyond emissions reduction. It incorporates climate adaptation planning, just transition principles, climate governance responsibilities, and mechanisms to encourage low-carbon investment. Government agencies are required to prepare climate action programs, while local authorities must develop corresponding implementation plans. The legislation also provides the legal basis for carbon pricing, voluntary emissions reduction projects, carbon footprint and carbon-labeling programs, and future emissions trading mechanisms.
Reporting Requirements: Carbon Fees and Other Climate Measures
The Climate Change Response Act requires designated greenhouse gas emitters to measure, report, and verify their emissions. Taiwan has maintained a mandatory greenhouse gas reporting system for large emitters since 2014, and the Act strengthens the legal framework supporting these requirements. A key provision of the Climate Change Response Act is its carbon pricing framework. The Act authorizes the Ministry of Environment to levy carbon fees on major greenhouse gas emitters and to use the resulting revenues to support decarbonization initiatives, low-carbon technologies, and climate-related programs. The carbon fee system applies primarily to large emitters in the electricity, gas supply, and manufacturing sectors. The Act also includes provisions supporting:
Climate adaptation planning
Voluntary greenhouse gas reduction projects
Emissions reduction credit mechanisms
Carbon footprint verification and carbon-labeling programs
Just transition measures for workers, industries, and communities
Development and enhancement of natural carbon sinks and other mitigation measures
Penalties for Noncompliance
The Climate Change Response Act includes a comprehensive enforcement framework to support compliance with Taiwan's climate policies. Depending on the nature of the violation, organizations may face administrative fines, corrective orders, and escalating penalties for continued non-compliance. The penalty provisions cover areas such as greenhouse gas reporting and verification, carbon fee obligations, emissions reduction programs, and other requirements established under the Act and its implementing regulations.
Current Status
The Climate Change Response Act remains the cornerstone of Taiwan’s climate policy framework and is now moving from legislative planning to implementation. Since the Act was adopted in 2023, Taiwan has introduced a series of regulations to operationalize the Act. These include rules governing carbon fees, greenhouse gas management, voluntary emissions reduction projects, and the certification of emissions reduction credits. Government agencies have also begun implementing sector-specific decarbonization strategies aligned with Taiwan’s net-zero emissions by 2050 objective, while additional regulations are expected as the country develops its long-term carbon pricing and climate governance framework.
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