Taiwan to use carbon fees for business loan subsidies

Taiwan's Ministry of Environment is preparing to allocate a portion of its carbon fee revenue to provide financial support for businesses transitioning to net-zero emissions. The Greenhouse Gas Management Fund, which received its inaugural carbon fee collection of approximately 4.97 billion New Taiwan dollars in late May, will be utilized for this initiative.

The ministry has proposed amendments to the "Greenhouse Gas Management Fund Revenue, Custody, and Utilization Regulations." The revised regulations will include provisions for using fund income to subsidize loan credit guarantees and interest payments for businesses. This move aims to leverage public-private partnerships and offer tangible financial tools to accelerate the industrial sector's progress toward achieving net-zero targets.

The Climate Change Administration has tentatively set aside 500 million New Taiwan dollars for these credit guarantee and interest subsidy programs. The ministry has also drafted "Implementation Guidelines for Greenhouse Gas Management Fund Special Loan Credit Guarantees and Interest Subsidies (Draft)" and held a consultation meeting on June 18 to gather feedback from various stakeholders. This input will be a crucial reference for the program's implementation.