25 March 2024
This third report, entitled ‘Policy measures to respond to carbon fee impacts on industry in Taiwan’, focuses on resistance to carbon pricing instruments from the industrial sector.
The report also 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. The report was co-authored by Josh Burke, Baran Dodo, Victor Ortiz and Anastasia Steinlein.
The report includes four overarching recommendations for the Taiwanese Government:
- There is a strong case for simplicity: Keep the carbon fee straightforward to enhance compliance, reduce costs, and build credibility both domestically and internationally.
- Maintain policy stringency: If using flexibility mechanisms like offsets, impose strict restrictions to avoid weakening decarbonisation incentives and prevent lobbying for inefficient preferential rates.
- Strike a balance: Ensure the measures instituted to manage opposition are not overly generous; for example, by imposing strict conditions on preferential rates.
- Consider international ramifications: Prioritise competitiveness risks but be mindful of the changing global policy landscape where high carbon prices are increasingly adopted.