TAIPEI (Taiwan News) – Taiwan’s carbon credit regulations will come into effect on August 15.
The 38 articles of the regulation, drawn up by the Ministry of Environment (MOENV) on July 1, specify the guidelines for holding, trading and canceling carbon credits, per CNA. Carbon credits are permits that allow the owner to emit a certain amount of carbon dioxide.
MOENV Climate Change Administration official Kao Chun-hsuan (高俊璿) said CNA buyers and sellers should ensure that all required fees are paid. If fees are missing, the transaction process cannot be completed, resulting in the inability to obtain the carbon credits, he said.
Kao added that buyers must pay transaction fees and the purchase price, and if they want to acquire carbon credits through an auction, they must first pay a deposit.
Carbon credit providers are viewed as intangible assets similar to services, necessitating the payment of business taxes, Kao explains. This requirement is being handled as per the regulations of the Ministry of Finance, they said.
Regarding the deposit required for auctions, Kao said it guarantees the completion of the auction process. If the winning bidder withdraws, the deposit will be forfeited. However, if the buyer completes the process as required, the deposit can be deducted from the purchase price, Kao said.
The government expects the first transaction to take place at the end of September.
