Environmental Ministry Drafts Carbon Fee Regulations for Credit Guarantees and Interest Subsidies, Budget Estimated at NT$500 Million

(Central News Agency, Taipei, July 7) The Environmental Protection Administration officially received nearly NT$5 billion in carbon fees at the end of May this year. To assist businesses, the Environmental Protection Administration today announced a draft of the revenue and expenditure management and utilization regulations, providing financial support tools that can be used for loan credit guarantees and interest subsidies; the estimated budget is NT$500 million.

The Environmental Protection Administration officially received its first carbon fee payment at the end of May this year, amounting to NT$4.97 billion. The Environmental Protection Administration today announced the draft amendment to Article 4 of the "Greenhouse Gas Management Fund Revenue, Expenditure, Custody, and Utilization Regulations," adding loan credit guarantees and interest subsidies as uses for the fund.

The Environmental Protection Administration's Climate Change Administration stated previously that, for example, the steel industry has expressed that it needs to apply for carbon fee subsidies to obtain bank loans for process improvements. The Financial Supervisory Commission has also designated corporate willingness to invest in self-initiated emission reduction plans as a priority item for loan approval under the Green Finance Action Plan 3.0. Therefore, a budget of NT$500 million is tentatively allocated for credit guarantees and interest subsidies.

The Climate Change Administration issued a press release today stating that the amendment to Article 4 of the regulations adds "related expenses for providing loan credit guarantees and interest subsidies for businesses implementing greenhouse gas reduction and climate change adaptation." The aim is to guide private capital through public-private partnerships, providing practical financial support tools to accelerate the industry's achievement of net-zero transition goals.

On June 18, the Climate Change Administration held a consultation meeting for the draft "Greenhouse Gas Reduction Technology and Climate Change Adaptation Subsidy Regulations" and the draft "Implementation Guidelines for Greenhouse Gas Management Fund Special Loan Credit Guarantees and Interest Subsidies." These will serve as important references for the promotion of this initiative.

The Environmental Protection Administration stated that carbon fee revenue is the main source of the Greenhouse Gas Management Fund, which is a special fund as defined by the Budget Act. According to Article 21 of the Budget Act, its revenue and expenditure management and utilization regulations are to be determined by the Executive Yuan. The current "Greenhouse Gas Management Fund Revenue, Expenditure, Custody, and Utilization Regulations" were amended and promulgated by the Executive Yuan in January 114 (2025). (Editor: Li Heng-shan) 1150707

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