Environment Minister Peng Chi-ming (彭啓明) announced that Taiwan will launch a trial emissions trading system (ETS) in the second half of 2026 to encourage more companies to engage in carbon reduction. He also noted that Taiwan does not rule out exploring new-generation nuclear power.

At the Asia Carbon Pricing Forum on Tuesday, an international event organized by the Environmental Ministry to deepen global exchanges on carbon pricing policies and explore strategies for Taiwan’s mid- to long-term roadmap, Peng said companies will pay carbon fees in May next year based on their total emissions from this year, following the Regulations Governing the Collection of Carbon Fees, which came into effect on January 1.

According to the latest statistics, about 464 factories across 252 companies will be subject to the fee, as their annual emissions exceed 25,000 tons. More than 90 percent of these companies have submitted voluntary reduction plans. In addition, around 60 percent are classified as high carbon-leakage risk industries, meaning their emissions are eligible for discounted rates. The government estimates the system will generate about NT$4 billion in carbon fees next year.

The current carbon fee in Taiwan is NT$300 per ton. Companies that submit voluntary reduction plans may qualify for discounted rates of NT$100 or even NT$50 per ton—“cheaper than a bottle of Coca-Cola,” Peng said. However, he stressed that this is only the beginning. Taiwan must eventually move toward a cap-and-trade emissions trading system (ETS) to truly reflect the cost of carbon reduction and push more companies to cut emissions.

At the forum, Karsten Tietz, Director General of the German Institute in Taipei, said that both energy security and national defense are essential to Germany. In 2024, renewable energy accounted for 59 percent of Germany’s power generation. Tietz asserts that renewables are not only carbon-free but also reduce Germany’s dependence on oil and natural gas from authoritarian states. For this reason, Germany calls renewables “freedom energy,” believing that the transition strengthens national resilience.

Dr. Jürgen Landgrebe, advisor to Taiwan’s Environmental Ministry, said Germany aims to achieve carbon neutrality by 2045. With the country phasing out nuclear power, he acknowledged that reaching net-zero emissions poses a significant challenge.

In response, Peng told reporters that while debates about nuclear power and new-generation nuclear technologies are ongoing worldwide, Taiwan does not rule out adopting safer and more advanced nuclear options. He added that Taiwan must diversify its future energy strategy.