Taiwan's Minister of Environment, Peng Chi-ming, has announced that a carbon border adjustment mechanism (CBAM) bill could be formulated in the second half of 2024, aligning with the European Union’s (EU) forthcoming CBAM regulations.
The EU is set to implement mandatory carbon tariffs on imports of carbon-intensive goods, including steel, cement and aluminium, with official guidelines expected by July or August. Mr Peng, who has been invited as an international CBAM consultant for the EU, stated that Taiwan's mechanism would follow the bloc’s regulatory framework once finalised.
With the US considering new tariff policies under Donald Trump’s administration, he noted that the interaction between US trade measures and the EU’s CBAM remains uncertain. He added that Taiwan’s CBAM would require approval from the World Trade Organization (WTO) due to its implications on global trade.
Domestic cement and steel producers have expressed concerns over unfair competition, as major importers are not currently required to disclose their carbon emissions. The Ministry of Environment is compiling a list of importers – primarily steel and cement firms – that would be subject to new regulations in coordination with trade and customs authorities.
From this year, domestic manufacturers are already subject to carbon fees, and the next phase of regulation will require importers to disclose carbon footprints based on EU standards. Around one-third of Taiwan’s cement imports originate from Vietnam, which would be subject to CBAM, Peng said.
