December 2023
Oli Wong and Tina Lee
On December 1, 2023, the Taiwan Ministry of Environment announced the Guidelines for the Establishment of Carbon Fee Rate Review Committee (hereinafter, the “Guidelines”) to regulate the composition of the Carbon Fee Rate Review Committee, the procedures for convening meetings and adopting resolutions, as well as consideration factors for reviewing carbon fee rates. The Guidelines, which took effect immediately upon promulgation, are highlighted as follows:
I. Objectives and mission (Articles 1 and 2 of the Guidelines)
To review the rates at which carbon fees are collected, the Carbon Fee Rate Review Committee is established with responsibilities including (1) deliberation on the determination and adjustment of carbon fee rates, (2) deliberation on the determination and adjustment of preferential carbon fee rates, and (3) evaluation, review, research, and consultation on other matters related to carbon fee rates.
II. Composition of the members (Articles 3-5 and 11 of the Guidelines)
The Carbon Fee Rate Review Committee shall consist of 19 to 23 members, each serving a two-year term, with the possibility of reappointment. Representatives from private organizations, scholars, and experts may be reappointed for only one additional term.
The Deputy Minister of Environment and the Director-General of the Climate Change Administration respectively serve as the convener and deputy convener of the meetings and are ex-officio members. The rest of the members are appointed by the Minister of Environment from relevant agency representatives, private organization representatives, scholars, and experts. Non-governmental members must constitute at least two-thirds of the committee, and the ratio of any gender should not be less than one-third to reflect the spirit of gender equality.
III. Convening of meetings and decision-making procedures (Articles 7 and 8 of the Guidelines)
The Carbon Fee Rate Review Committee must be attended by at least two-thirds of its members to commence a meeting, with at least one meeting convened annually. Resolutions require the agreement of more than half of the attending members. In case of an equal number of affirmative and negative opinions among attending members, the chairperson shall make the final decision.
IV. Consideration factors for rates under review (Articles 9 and 10 of the Guidelines)
In determining carbon fee rates, the Carbon Fee Rate Review Committee should consider factors including (1) the current status of greenhouse gas reduction in this country, (2) emission source types, (3) types of greenhouse gas emissions, (4) emission scale, (5) voluntary reduction efforts and their effectiveness, and (6) other relevant factors. The review opinion should be submitted to the Ministry of Environment.
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