Taiwan Environment Ministry Proposes Carbon-Reduction Subsidies Funded by Carbon-Fee Revenue

Under Taiwan’s Climate Change Response Act, carbon-fee revenue must be paid into the Ministry of Environment’s Greenhouse Gas Management Fund and earmarked for emissions reduction and climate adaptation. Taiwan entered the era of carbon pricing in 2025, with the initial fees affecting corporate costs. Using the revenue to support industry’s low-carbon transition has also become a key policy issue.

The ministry announced draft subsidy rules on June 10, 2026. The first carbon-fee payments totaled NT$4.97 billion from 240 companies operating 461 factories. Preliminary plans allocate NT$2 billion to emissions reduction and climate adaptation, plus NT$500 million for interest subsidies and credit guarantees. Funding covers low-carbon manufacturing processes, energy efficiency and carbon capture, utilization and storage (CCUS), but excludes statutory obligations such as carbon inventories and voluntary reduction plans.