Policy measures to respond to carbon fee impacts on industry in Taiwan

Carbon pricing is increasingly seen as a crucial tool in the global effort to combat climate change. In this evolving policy landscape, Taiwan is actively advancing the development of its national carbon fee, which was launched in 2024, with an initial focus on the electricity and manufacturing industries. Within this framework, it is exploring the adoption of measures aimed at safeguarding its industries from potential adverse consequences. Opposition to carbon pricing instruments is likely to arise from both the industrial sectors and population groups that will be impacted the most. This report focuses on resistance from the industrial sector and examines the relevant measures that have been adopted by major carbon pricing jurisdictions, including in the European Union, Singapore and UK, to provide insights for addressing potential industry resistance and the development of tailored recommendations for Taiwan.