July 2026
Ecodesign Obligations and Innovative Experiment Sandbox Take Effect: Taiwan Promulgates Amended Resource Circulation Promotion Act
The Resource Recycling Act has been comprehensively amended and renamed the Resource Circulation Promotion Act (the “Act”). The amended provisions were promulgated by the President on June 17, 2026. Notably, the newly introduced ecodesign requirements impose obligations on product manufacturers, importers, and construction project owners to comply with ecodesign regulations, with noncompliance carrying risks of fines or work stoppages. In addition, the newly established innovative experiment system enables innovative resource circulation technologies to be tested in real-world settings, with regulatory relaxation to increase the likelihood of commercialization. The following is a summary of the ecodesign and innovative experiment provisions under the Act.
I. Ecodesign Requirements
A. Ecodesign Regulation
Prior to this amendment, the Act focused primarily on resource recycling and reuse. Article 13 of the amended Act now expressly requires that products and construction works incorporate ecodesign, emphasizing both source reduction and resource circulation. The competent authority is to formulate ecodesign regulations for products and construction works and provide guidance to enterprises on compliance. The ecodesign regulations will encompass the following principles:
1. Use of single materials or materials that are easily decomposable, dismantlable, or conducive to resource circulation.
2. Use of a specified ratio or quantity of recycled aggregates or materials.
3. Ease of repair, upgradability, or enhanced durability.
4. Prohibition or restriction on the use of environmentally hazardous substances.
5. On-site sorting at source in construction works to reduce waste generation.
6. Other designs that conserve energy and resource consumption and reduce waste throughout the life cycle.
B. Ecodesign Obligations for Product Manufacturers and Importers
Article 14, Paragraph 1 of the Act provides that the central competent authority may designate and publicly announce certain categories and scales of products that must comply with specified ecodesign regulations. Manufacturers and importers of such products must submit ecodesign documentation to the central competent authority for approval within the announced deadline. Enterprises must evaluate whether their products meet ecodesign requirements at the outset of product development, and importers must manage their supply chains through contractual arrangements to ensure that products supplied by foreign manufacturers comply with ecodesign standards.
C. Ecodesign Obligations for Construction Project Owners
Article 15, Paragraph 1 of the Act provides that the central competent authority may designate and publicly announce construction works of a certain scale whose project-supervising government agencies or project owners must comply with specified ecodesign regulations during the planning, design, and construction phases. The legislative reasons indicate that ecodesign will be implemented first in public works projects, with subsequent promotion of requirements such as the use of a specified ratio of recycled aggregates and on-site sorting at source in construction works to reduce waste generation. Accordingly, enterprises, whether undertaking public works for government agencies, contracting private construction projects, or serving as project owners themselves, must comply with ecodesign regulations throughout the planning and construction process; failure to do so may result in breach of the construction contract or a direct violation of the Act.
II. Regulatory Sandbox for Resource Circulation Innovative Experiments
Article 37 of the Act introduces a regulatory sandbox mechanism for resource circulation innovative experiments. Plans approved by the central competent authority may, during the experiment period, be exempted from statutory restrictions relating to recycled resource circulation and reuse, national standards for recycled products, waste disposal and reuse, and waste disposal permits (Article 37, Paragraph 3 of the Act). This mechanism enables enterprises to test emerging resource circulation technologies or business models in a regulatory environment with lower compliance costs.
III. Penalties
A. Violation of Ecodesign Requirements
Product manufacturers and importers that violate the ecodesign obligations under Article 14 of the Act are subject to fines ranging from NTD 6,000 to NTD 300,000. Where the violator fails to remedy the violation within the prescribed period after being notified to do so, consecutive fines may be imposed. Construction project owners that violate the ecodesign obligations under Article 15 of the Act are subject to fines ranging from NTD 60,000 to NTD 300,000. The competent authority may order a work stoppage where necessary. Where a project owner has not yet commenced construction, the competent authority may order the owner to submit an improvement plan within a specified period, and consecutive fines may be imposed on owners that fail to execute the improvement plan as approved (Article 38 of the Act). In addition, product manufacturers, importers, and construction project owners that violate the ecodesign requirements may have their names, addresses, and details of the violation publicly disclosed by the competent authority (Article 50 of the Act).
B. Violation of Innovative Experiment Requirements
Enterprises that have been approved to conduct resource circulation innovative experiments and that violate the terms of approval or other requirements specified by the competent authority are subject to fines ranging from NTD 6,000 to NTD 150,000. Where the violator fails to remedy the violation within the prescribed period after being notified to do so, consecutive fines may be imposed (Article 43 of the Act).
IV. Effective Date
The Act was promulgated and took effect on June 17, 2026. However, the provisions regarding the ecodesign obligations for product manufacturers and importers and the associated penalties (Article 14 and Paragraph 1 of Article 38) will not take effect until June 17, 2028 (i.e., two years after promulgation). By contrast, the provisions regarding the ecodesign requirements for construction works and the associated penalties (Article 15 and Paragraph 2 of Article 38 of the Act) are already in effect. The Ministry of Environment has begun soliciting opinions from stakeholders and has commenced work on drafting the relevant sub-laws and ecodesign regulations, although a specific timeline for completion has not yet been announced. Project owners should monitor the competent authority’s forthcoming ecodesign regulations and related rules, and should begin reviewing their project design, planning, and construction processes for potential areas of noncompliance in advance of the implementation of supporting regulations, so as to mitigate compliance risks.
I. Ecodesign Requirements
A. Ecodesign Regulation
Prior to this amendment, the Act focused primarily on resource recycling and reuse. Article 13 of the amended Act now expressly requires that products and construction works incorporate ecodesign, emphasizing both source reduction and resource circulation. The competent authority is to formulate ecodesign regulations for products and construction works and provide guidance to enterprises on compliance. The ecodesign regulations will encompass the following principles:
1. Use of single materials or materials that are easily decomposable, dismantlable, or conducive to resource circulation.
2. Use of a specified ratio or quantity of recycled aggregates or materials.
3. Ease of repair, upgradability, or enhanced durability.
4. Prohibition or restriction on the use of environmentally hazardous substances.
5. On-site sorting at source in construction works to reduce waste generation.
6. Other designs that conserve energy and resource consumption and reduce waste throughout the life cycle.
B. Ecodesign Obligations for Product Manufacturers and Importers
Article 14, Paragraph 1 of the Act provides that the central competent authority may designate and publicly announce certain categories and scales of products that must comply with specified ecodesign regulations. Manufacturers and importers of such products must submit ecodesign documentation to the central competent authority for approval within the announced deadline. Enterprises must evaluate whether their products meet ecodesign requirements at the outset of product development, and importers must manage their supply chains through contractual arrangements to ensure that products supplied by foreign manufacturers comply with ecodesign standards.
C. Ecodesign Obligations for Construction Project Owners
Article 15, Paragraph 1 of the Act provides that the central competent authority may designate and publicly announce construction works of a certain scale whose project-supervising government agencies or project owners must comply with specified ecodesign regulations during the planning, design, and construction phases. The legislative reasons indicate that ecodesign will be implemented first in public works projects, with subsequent promotion of requirements such as the use of a specified ratio of recycled aggregates and on-site sorting at source in construction works to reduce waste generation. Accordingly, enterprises, whether undertaking public works for government agencies, contracting private construction projects, or serving as project owners themselves, must comply with ecodesign regulations throughout the planning and construction process; failure to do so may result in breach of the construction contract or a direct violation of the Act.
II. Regulatory Sandbox for Resource Circulation Innovative Experiments
Article 37 of the Act introduces a regulatory sandbox mechanism for resource circulation innovative experiments. Plans approved by the central competent authority may, during the experiment period, be exempted from statutory restrictions relating to recycled resource circulation and reuse, national standards for recycled products, waste disposal and reuse, and waste disposal permits (Article 37, Paragraph 3 of the Act). This mechanism enables enterprises to test emerging resource circulation technologies or business models in a regulatory environment with lower compliance costs.
III. Penalties
A. Violation of Ecodesign Requirements
Product manufacturers and importers that violate the ecodesign obligations under Article 14 of the Act are subject to fines ranging from NTD 6,000 to NTD 300,000. Where the violator fails to remedy the violation within the prescribed period after being notified to do so, consecutive fines may be imposed. Construction project owners that violate the ecodesign obligations under Article 15 of the Act are subject to fines ranging from NTD 60,000 to NTD 300,000. The competent authority may order a work stoppage where necessary. Where a project owner has not yet commenced construction, the competent authority may order the owner to submit an improvement plan within a specified period, and consecutive fines may be imposed on owners that fail to execute the improvement plan as approved (Article 38 of the Act). In addition, product manufacturers, importers, and construction project owners that violate the ecodesign requirements may have their names, addresses, and details of the violation publicly disclosed by the competent authority (Article 50 of the Act).
B. Violation of Innovative Experiment Requirements
Enterprises that have been approved to conduct resource circulation innovative experiments and that violate the terms of approval or other requirements specified by the competent authority are subject to fines ranging from NTD 6,000 to NTD 150,000. Where the violator fails to remedy the violation within the prescribed period after being notified to do so, consecutive fines may be imposed (Article 43 of the Act).
IV. Effective Date
The Act was promulgated and took effect on June 17, 2026. However, the provisions regarding the ecodesign obligations for product manufacturers and importers and the associated penalties (Article 14 and Paragraph 1 of Article 38) will not take effect until June 17, 2028 (i.e., two years after promulgation). By contrast, the provisions regarding the ecodesign requirements for construction works and the associated penalties (Article 15 and Paragraph 2 of Article 38 of the Act) are already in effect. The Ministry of Environment has begun soliciting opinions from stakeholders and has commenced work on drafting the relevant sub-laws and ecodesign regulations, although a specific timeline for completion has not yet been announced. Project owners should monitor the competent authority’s forthcoming ecodesign regulations and related rules, and should begin reviewing their project design, planning, and construction processes for potential areas of noncompliance in advance of the implementation of supporting regulations, so as to mitigate compliance risks.
