Taiwan will submit a draft law on its own CBAM not earlier than H2 2025

The country intends to harmonize its mechanism with the WTO

The draft law on the establishment of Taiwan’s cross-border carbon adjustment mechanism (CBAM) will be developed no earlier than the second half of this year. This was stated by Minister of the Environment Peng Chi-ming, according to the Taipei Times.

According to the official, given that US President Donald Trump is introducing a new tariff policy aimed at various exporting countries, it remains uncertain how the European CBAM will respond to these steps.

Peng added that since the cross-border carbon adjustment mechanism is a complex trade process regulated by the WTO, Taiwan will have to apply to the organization for approval of its own version.

The Minister said that he has accepted the EU’s invitation to become one of the international consultants to CBAM and will continue to follow the latest developments.

Local steel and cement producers have been complaining to the environment ministry that major competing importers are not required to disclose their carbon emissions data. According to Peng, the ministry is compiling a list of suppliers mainly representing these sectors for regulation in conjunction with the agencies responsible for international trade and customs.

The minister explained that in line with the carbon levies introduced for domestic producers from 2025, the ministry will develop a scheme that will require importers to disclose information on carbon footprint and emissions based on EU regulations. Such measures are intended to protect local industry.

Last October, Taiwan’s Ministry of the Environment approved a carbon dioxide fee of NT$300 ($9.32) per tonne with preferential rates set for certain emission sources.