The Climate Change Adaptation Act has passed the third reading, implementing a phased carbon fee collection towards achieving net zero emissions by 2050

　　The Legislative Yuan today passed the third reading of the "Climate Change Response Act," which sets a goal of net zero emissions by 2050 and establishes a carbon-fee mechanism. The carbon fee is expected to be levied on 287 major GHG emitters in 2024. Companies and organizations levied will be required to submit a plan for reducing GHG emissions and may be eligible for reduced rates if they effectively meet the designated targets.

　　The Act indicated that carbon fee is levied on both direct and indirect emission sources. Direct emission sources are levied based on the overall Greenhouse Gas (GHG) emissions, while indirect emission sources are based on the indirect emissions from the use of electricity; however, emission sources that produce electricity are required to provide documents proving their electricity consumption and emissions and apply to the competent authority for a deduction.

　　Carbon fee will be included in the Greenhouse Gas Management Fund. The Act stipulates that the fund will be used exclusively to implement greenhouse gas reduction measures and address climate change, subsidize and reward business investments in GHG reduction technologies, and assist local governments and institutions in implementing their business.