1 
 Climate Change Response Act  
Chapter 1  General Principles  
Article 1  
Climate change concerns have led to the passage of the Climate Change Response Act, establishing 
strategies to reduce and manage greenhouse gas emissions, strengthen environmental justice, and the 
shared responsibility of environmental protection and the nation ’s sustainable development.  
Article 2  
The Executive Yuan ’s Environmental Protection Administration, is th e central competent authority at 
the central government level, while municipal governments execute authority at the county or city lev-
el. 
The matters designated in this Act, which involve the powers and responsibilities of the central indus-
try competent authorities, will be handled by the central industry competent authorities.  
Article 3  
This glossary of terms are to be interpreted with the following meanings:  
1. Greenhouse Gas (GHG) refers to the following substances: carbon dioxide (CO 2), methane (CH 4), 
nitrous oxide (N 2O), hydro fluorocarbons (HFCs), perfluorocarbons  (PFCs), sulfur hexafluoride 
(SF 6), nitrogen trifluoride (NF 3) , and others designated by the central competent authority.  
2. Climate change adaptation refers to the process of adjusting to current  or expected climate change 
effects, to moderate or avoid harm, and exploit beneficial opportunities; including the process for 
natural systems to adjust and adapt to the actually occurring climate change effects through proper 
human intervention when need ed. 
3. GHG reduction means reducing GHG emissions stemming from human activities or to enhance 
GHG absorption and storage . 
4. Emission Source means any unit or process that directly or indirectly releases GHG into the atmos-
phere.  
5. Global -warming potential (GWP) refers to the measurements of the amount of heat trapped over a 
specific time interval by a specific GHG when compared to a similar mass of carbon dioxide. GWP 
is expressed as a factor of carbon dioxide (whose GWP is standardized to 1).  
6. Emissions are the s um of different GHG emissions and their corresponding GWPs, which shall be 
described by CO 2 equivalent (CO 2e). 
7. Negative emission technology means the system of removal, absorption and storage of carbon diox-
ide or other GHG from the emission sources or in the atmosphere by natural carbon cycle or an-
thropogenic method.  
8. Carbon sink means the sequestration and storage of carbon dioxide or other GHG removed from 
emission unit or atmosphere by trees, forests, soils, oceans, stratum, facilities, or other sites.  
9. Net zero emissions refers to the achieving of an overall balance between the quantity of GHG emis-
sions and carbon sinks.  
10. Just transition  means in the principle of respecting human right and labor, consulting all the com-
munities affecting by the climate chan ge responsive transition and climate policy, and assisting in-
dustries, regions, labors and consumers in stable transition.  
11. Entity means legal persons, non -corporate representatives or managers, institutions, government 
agencies or others who have emission  sources designated by the central competent authority.  
12. Reduction credit refers to the quantity of GHG emissions reduction earned by entity and govern-
ment at all levels through the implementation of GHG voluntary reduction measures, GHG Offset 
Project and GHG Early Action Project before the amendment of the Act.  
13. Emission performance standard means the permitted emission per unit of product, material, mileage 
or input of emission sources.  2 
 14. Cap means the control measure implemented in order to effectively redu ce GHG emissions by the 
limitation of the total amount of emissions allowed for designated emission sources in a certain pe-
riod of time under the cap -and-trade scheme.  
15. Emission allowance means the allowance to emit carbon dioxide equivalent during a specif ied 
period under the cap -and-trade scheme.  
16. Carbon leakage refers to the implementation of cap -and-trade scheme that may result in relocation 
of energy -intensive production in less -constrained regions which could cause global carbon 
emissions to increase.  
17. Carbon footprint refers to the amount of total carbon emissions released throughout the life cycle of 
a product from raw material acquisition, manufacturing, distribution and sale, use and waste 
treatment, calculated by total CO 2 equivalent (CO 2e). 
Article  4 
The long -term national GHG emission reduction goal shall achieve GHG net zero emission by 2050.  
To achieve the goal set in the foregoing Paragraph, all levels of government shall implement GHG re-
duction, develop negative emission technologies and facili tate international cooperation together with 
the general public, entities and organizations.  
The goal pursuant to Paragraph 1 shall be timely adjusted by the central competent authority, in consul-
tation with the central industry competent authorities, by t aking into consideration the United Nations 
Framework Convention on Climate Change (UNFCCC), its agreements and or related international 
conventions, as well as domestic circumstances, subject to the Executive Yuan ’s approval; and in line 
with the required  periodical review.  
Article 5  
The national government shall ensure the sustainable utilization of the nation's resources, maintain bal-
anced energy supply and demand, mitigate and respond to the impacts of climate change, and place 
balanced emphasis on env ironmental protection, economic development, social justice, intergenera-
tional equity and vulnerable groups support.  
All levels of government shall encourage technological innovation research and development, enhance 
financial mechanisms, spur economic mom entum, open healthy competition, promote low -carbon 
green growth, create employment opportunities, and boost national competitiveness.  
In order to respond to the impact of climate change, the government shall uphold the following legal 
and policy principl es: 
1. To ensure the nation's energy security, the government shall establish mid -long-term strategies for 
gradually reducing dependence on fossil fuels with a mid -long-term aim of renewable energy poli-
cies, and the gradual realization of a nuclear -free ho meland.  
2. In line with "user charge" principle of environmental justice, the free allowances allocation method 
shall be gradually replaced by allowances auctioned or sold at a fixed charge.  
3. To respond to the impact of climate change, under the princip le of equality and social welfare pro-
motion, the government should implement GHG emissions tax (or fee)   mechanisms based on car-
bon dioxide equivalent.  
4. The government should actively help traditional industries achieve energy conservation and carbon 
reduction or transition, develop green technology and green industry, create new employment op-
portunities and green economies, and promote a low -carbon, green growth plan for the nation's in-
frastructure.  
5. In order to lessen environmental pollution and greenhouse gas emissions, the government should 
promote resource use efficiency, energy use efficiency, and resource recycling.  
6. Inclusion of climate change response factors, reinforcement of climate change adaptation 3 
 capability, lower vulnerability and enhance resilience, to ensure the nation ’s sustainable 
development.  
Article 6   
Climate Change Response plans or programs shall comply with the following principles:  
1. National reduction targets and schedule shall seek to realize the common but differentia ted respon-
sibilities specified in UNFCCC, while also furthering the sustainable development of the nation ’s 
environment, economy, and society.  
2. The determination of sector -based periodic regulatory goals shall take cost effectiveness into con-
sideration, and  strive to achieve GHG reductions at the lowest possible cost.  
3. The government shall actively adopt preventive measures, seek to forecast, avoid, or reduce the 
causes of climate change, to mitigate the adverse effects, and to support just transitions.  
4. Dedic ation to research and development on climate change science and GHG reduction technology  
5. Establish green financial mechanism and promotion measures, in order to bring about a healthy cy-
cle of investment and pursuit of sustainable industrial development.  
6. Enhance the cooperation between central and local authorities, as well as private and public sector, 
to implement educational propaganda and cultivate capacity for professionals in response to climate 
change.  
7. Actively strengthen international cooperation to  ensure the international competitiveness of indus-
tries.  
Article 7  
The competent authorities and industry competent authorities may appoint affiliated agencies, entrust 
or commission other agencies (organizations) to conduct investigation, verification, consultation, train-
ing, and research regarding climate change adaptation and GHG mitigation.  
Chapter 2 Authority and Responsibility of Government Agencies  
Article 8  
In order to promote climate change response and to enhance across sectoral governance, the Executive 
Yuan ’s National Council for Sustainable Development ("NCSD") shall coordinate, assign or integrate 
basic policies for national climate change response and major important strategies for cross sectoral 
climate change response affairs.  
Relevant  central government agencies shall promote GHG reduction and climate change adaptation 
through the following actions:  
1. Development of renewable energy and energy technology.  
2. Improvement of energy efficiency and energy conservation.  
3. Reduction in GHG emissions by manufacturing sectors.  
4. Transportation management, development of mass transit systems, and reduction in GHG emissions 
by other transportation sectors.  
5. Implementation of low carbon energy transportation.  
6. Reduction and management of GHG emission s from buildings.  
7. Waste recycling and reuse.  
8. Forest resource management, biodiversity conservation, and strengthening of forests' carbon se-
questration.  
9. Reduction and management of greenhouse gas emission by agriculture and guarantee of food secu-
rity. 
10. Green  finance and GHG reduction incentive mechanisms.  
11. Comprehensive assessment of GHG reduction impacts on the economy and the planning of re-
sponse measures.  
12. Establishment of GHG cap -and-trade scheme including allocation, auction, allowance sale, trade, 
and fac ilitation of international emission reduction cooperation mechanism.  4 
 13. Research, development and implementation of GHG reduction technologies.  
14. Study of international GHG conventions and laws and participation in international conferences.  
15. Development and imp lementation of matters connected with climate change adaptation.  
16. Education and advocacy of climate change adaptation and GHG reduction.  
17. Promotion of just transition.  
18. Other climate change adaptation and GHG reduction matters.  
Article 9  
The central competent authority shall develop National Climate Change Action Guideline ("Action 
Guideline") reflecting the nation's economy, energy and environment, current international situation, 
and the assignment of responsibilities mentioned in Paragraph 1 of the  previous Article, and shall im-
plement the Action Guideline in consultation with the central industry competent authorities, and open 
to public after requesting approval from the Executive Yuan.  
The Action Guideline pursuant to the foregoing paragraph shal l be reviewed periodically by the central 
competent authority, taking into consideration the United Nations Framework Convention on Climate 
Change (UNFCCC), its agreements and or related international conventions, together with domestic 
circumstances.  
Article 10  
To achieve the national long term GHG reduction goal, the central competent authority shall invite rel-
evant central and local agencies, scholars, experts, and non -governmental organizations to participate 
through public hearing processes to establi sh the periodic regulatory goals in stages on a five -year ba-
sis to be implemented and open to public after requesting approval from the Executive Yuan.  
The periodic regulatory goals shall include the following contents  pursuant to the Article 5(3) and Arti-
cle 6:  
1. National periodic regulatory goals . 
2. Sectoral periodic regulatory goals for energy, manufacturing, building, transportation, agriculture 
and environment . 
3. Periodic goals for electric carbon emission factors.  
Apart from the regulatory goal for the firs t stage, the central competent authority shall establish the 
regulatory goal for each stage at two years ahead of the beginning of the next stage.  
After the periodic regulatory goals for each stage have been approved by the Executive Yuan, the cen-
tral competent authority shall compile the status of implementation by the central industry competent 
authorities for each sector annually and report to the Executive Yuan.  
Article 11  
The central industry competent authorities shall formulate and revise the Se ctoral GHG Reduction Ac-
tion Programs (“Sectoral Action Program ”) and the target for each year, in accordance with the Action 
Guideline and periodic regulatory goals, after widely gathering opinions from the relevant central and 
local agencies, scholars, ex perts, and non -governmental organizations through holding forums or other 
ways. The central industry competent authorities shall submit the Sectoral Action Program and the tar-
gets for each year to the central competent authority; the program and the target  shall be implemented 
and open to public after requesting approval from the Executive Yuan.  
Article 12   
The central industry competent authorities shall deliver an annual report on the implementation of the 
Sectoral Action Program for the sectors under i ts supervision.  
The central industry competent authorities after implementation of the Sectoral Action Program for the 
sectors under its supervision, shall propose improvement measures for any failure to achieve the yearly 
targets or periodic regulatory go al for the sectors under its supervision.  
The central industry competent authorities shall submit the annual report and improvement measures 5 
 mentioned in the previous two paragraphs to the central competent authority to request approval from 
the Executive  Yuan, and open to public afterwards.  
Article 13  
The central industry competent authorities shall regularly survey emission, compile relevant statistics, 
and submit the survey and statistics results to the central competent authority annually.  
The central  competent authority shall compile the national emissions statistics, and establish a national 
GHG emissions inventory; to compile the national GHG report every three years for submission to the 
Executive Yuan whose approval will then pave the way for rele ase to the general public.  
Article 14  
Special municipality, county and city competent authorities who establish climate change response 
steering group, the principal of the competent authority shall assume the position of convener, in 
charge of cross depa rtment coordination, integration and implementation of climate change affairs.  
The committee of climate change response steering group  shall appoint or hire from relevant agencies , 
the principal of the competent authority, experts and scholars with knowled ge and experience in cli-
mate change response by the position of convener.  
Article 15  
Special municipality, county and city competent authorities shall formulate and revise the GHG 
Reduction Implementation Programs (“Reduction Implementation Program ”), in accordance with the 
Action Guideline and Sectoral Action Programs, after widely gathering opinions from the relevant 
agencies, scholars, experts, and non -governmental organizations through holding forums or other 
ways. The special municipality, county and  city competent authorities shall submit the Reduction 
Implementation Program to the special municipality, county and city climate change response steering 
group, the Reduction Implementation Program shall be implemented and open to public after 
requesting  approval from the central competent authority in consultation with the central industry 
competent authorities.  
Special municipality, county and city competent authorities shall deliver annual report of the Reduction 
Implementation Program to the special m unicipality, county and city climate change response steering 
group, and open to public afterwards.  
Article 16  
The industry competent authorities shall assist entities in the accounting of emission sources, verifica-
tion, registration, reduction, and part icipation in cooperative GHG reduction measures, domestically or 
internationally.  
Chapter 3 Climate Change Adaptation  
Article 17  
The Government in response to climate change shall promote adaptation capacity building matters as 
follows:  
1. Examine exist ing data, estimate possible climate change in the future, and evaluate the risk of cli-
mate change based on science, thereby strengthening the risk governance and the ability of adaptation 
to climate change.  
2. Reinforce the adaptation capacity related to e nvironment, disaster, facilities and energy resources in 
response to climate change, to enhance climate resilience.  
3. Ensure the implementation of climate change adaptation to correspond with national sustainable de-
velopment goals.  
4. Establish climate change governance and coordination mechanism between all levels of government 6 
 to consolidate regional adaptation capacity, integrating cross sectors and cross level tasks.  
5. Implement green financial mechanism and promotion measures i n response to the need for climate 
change adaptation.  
6. Promote emerging industries under climate change; assist in and encourage the development of 
technologies for climate change adaptation; research and develop, as well as promote products and 
business  opportunities derived from climate change adaptation.  
7. Foster climate change adaptation education, talents cultivation and raise civic awareness, and pro-
mote relevant activities mentioned above.  
8. Strengthen the capacity of vulnerable groups in respons e to climate change impacts.  
9.Integrate comprehensive and community -based climate change adaptation policies and measures  
10. Other matters related to capacity building on climate change adaptation.  
All citizens, entities and organizations shall dedicate to building climate change adaptation capacity 
mentioned in the preceding paragraph.  
Article 18  
The central science and technology competent authority shall conduct research and development on 
climate change science and adaptation to the impacts; research  and analyze, as well as grasp the 
climate change tendency in cooperation with the meteorological authorities; organize and summarize 
the climate scenarios, climate change science and impact information to periodically publicize 
scientific reports on clima te change.  
Government at all levels shall proceed climate change risk assessment according to the scientific 
reports mentioned in the previous paragraph, as the basis to develop and implement adaptation 
programs and strategies.  
The guidance for climate ch ange risk assessment mentioned in the preceding paragraph shall be 
determined by the central competent authority in consultation with relevant government agencies.  
 
Article 19  
The central industry competent authorities shall formulate and revise the Adaptation Action Programs 
for particular sectors (“Adaptation Action Program ”), in accordance with corresponding sectors 
vulnerable to climate change impacts, after widely gathering opinions from the relevant central and 
local agencies, scholars, experts,  and non -governmental organizations through holding forums or other 
ways. The Adaptation Action Program shall be submitted to the central competent authority.  
The central competent authority shall integrate the Adaptation Action Programs mentioned in the 
previous paragraph in accordance with the Action Guidelines, to establish the National Climate Change 
Adaptation Action Plan (National Adaptation Plan) to be implemented and open to public after 
requesting for approval from the Executive Yuan.  
The central i ndustry competent authorities shall deliver an annual report on the implementation of the 
Adaptation Action Program to the central competent authority to request for approval from the 
Executive Yuan, and open to public afterwards.  
Article 20  
Special munic ipality, county and city competent authorities shall invite relevant local government 
agencies, scholars, experts, and non -governmental organizations to hold workshops or in other forms to 
widely gather opinions in accordance with the Action Guideline, Nat ional Adaptation Plan and 
Adaptation Action Program to determine the Climate Change Adaptation Implementation Programs 
("Adaptation Implementation Program") for submission to the special municipality, county and city 7 
 climate change response steering group,  to be implemented and open to public after requesting 
approval from the central competent authority in consultation with the central industry competent 
authorities.  
Special municipality, county and city competent authorities shall deliver annual report of  the Adapta-
tion Implementation Program to the special municipality, county and city climate change response 
steering group to open to public.  
Chapter  4 Emission  Reduction  Measures  
Article 21  
Entities with Emission Sources designated by the central competent authority shall conduct emission 
accounting and register in the Registry by the deadline; for entities designated by the central competent 
authority, the information about emission accounting shall be verified by verification body.  
The central co mpetent authority shall determine management regulations for the accounting of GHG 
emissions, reporting elements, verification process and other binding matters for the foregoing para-
graph.  
Article 22  
Verification bodies shall apply and acquire accredita tion certificates and permits from the central com-
petent authority or its appointed accreditation body before the operation of verification business.  
The central competent authority shall determine management regulations for the prerequisite for appli-
catio n, review procedures, granting, graded verification scope, supervision, inspection, revocation, 
cancellation, as well as prerequisite for dedicated personnel, and other binding matters for verification 
body permits pursuant to the foregoing paragraph.  
The central competent authority shall determine management regulations for the qualification, requisite 
for commission or decommission, and other binding matters for an accreditation body pursuant to par-
agraph 1.  
 
Article 23  
The production processes for produ cts designated by the central competent authority shall comply with 
GHG emissions performance standards.  
Vehicles designated by the central competent authority that are manufactured or imported by entities 
for domestic use shall comply with GHG emissions p erformance standards.  
The structure, equipment of new buildings shall conform to GHG emission mitigation requirements.  
The central competent authority in consultation with the central industry competent authorities shall 
determine GHG emissions performance standards pursuant to paragraph 1 and 2, as well as the GHG 
emission mitigation requirements pursuant to the preceding  paragraph to implement after requesting 
approval from the Executive Yuan.  
Article 24  
Entities with newly installed or modified Emission Sources from which GHG emissions reach a certain 
scale shall offset the increased GHG emissions.  Provided that there  are difficulties in offsetting the in-
creased emissions due to special circumstances, entities may pay monetary substitution for GHG re-
duction purpose after requesting for approval from the competent authority.  
The central competent authority shall determi ne management regulations for the certain scale, offset-
ting ratio, deadline, sources for offsetting, application for monetary substitution payment, approval 
procedure, and calculation of monetary substitution, payment deadlines, payment methods and other 
binding matters pursuant to the foregoing paragraph.  8 
 Article 25  
Entities and government at all levels may independently or jointly propose voluntary GHG reduction 
programs and implement GHG reduction measures, to apply for reduction credits from the centra l 
competent authority, and shall follow the conditions and deadlines set by the central competent authori-
ty. 
The central competent authority may, according to the type of voluntary GHG reduction program, des-
ignated the verification method which the voluntary reduction measures or the emission reduction out-
comes  pursuant to the foregoing paragraph shall comply with.  
Entities and government at all levels who acquire reduction credits from participation in GHG Offset 
Projects, Early Action, and voluntary programs pursuant to the paragraph 1 shall apply to the central 
competent authority for respondent holding accounts, making the information regarding the reduction 
credits publicly accessible in the national registry designated by the central competent authority, and 
may transfer, trade or auction the credits.  
The central competent authority shall determine management re gulations for applicable candidates, ap-
plication procedures, voluntary reduction methods, project review and approval procedures, calculation 
of reduction credits, conditions for the use of reduction credits, deadline for use, revocation, cancella-
tion, wit hdrawal of reduction credits  or programs , management, and other binding matters pursuant to 
the paragraph 1.  
The central competent authority shall determine management regulations for the information necessary 
for opening the respondent holding accounts, a ccount management, the targets for reduction credits 
transfer or trade, transfer limits, fee, the targets for reduction credits auction, procedure, and other 
binding matters pursuant to the paragraph 3.  
Article 26  
The reduction credits pursuant to foregoi ng paragraph shall be used for the following purposes:  
1. offseting the increased GHG emissions  pursuant to the paragraph 1 of the article 24.  
2. deducing the emissions pursuant to the paragraph 1 of the article 28.  
3. deducing the differences in carbon emission p ursuant to the paragraph 1 of the article  31. 
4. offseting the amount of GHG emissions in excess of the emission allowances  pursuant to the para-
graph 2 of the article  36. 
5. other purpose recognized by the central competent authority.  
Article 27  
Entities who acquire international reduction credits shall recognized by the central competent authority 
before deducing the emissions pursuant to the paragraph 1 of the article 28 or offsetting the amount of 
GHG emissions in excess of the emission allowa nces pursuant to the paragraph 2 of the article 36. The 
amount of credit for deducing or offsetting shall not exceed ten percent of the used reduction credits 
per time.  
The central competent authority, in consultant with the central industry competent aut horities, may de-
termine the criteria regarding the binding matters of the recognition of the international reduction cred-
its pursuant to the foregoing paragraph by taking into consideration the United Nations Framework 
Convention on Climate Change (UNFCCC) , its agreements and/or related international conventions 
decisions, as well as factors that include but are not limited to, energy efficiency, domestic reduction 
credits and the long -term national GHG emission target.  
Article 28  
To achieve the long term national GHG emission reduction goal and periodic regulatory goals, the cen-
tral competent authority may impose carbon fee by stages against Direct and Indirect GHG Emission 9 
 Sources listed as follows:  
1. Direct Emission Sources: fee shall be collected based on  the quantity of emission from the owners 
of the Emission Sources; or from the actual user or manager if the owner of the source is not the 
user or manager.  
2. Indirect Emission Sources: fee shall be collected based on the quantity of indirect emission 
generated from the use of electric from the owners of the Emission Sources; or from the actual user 
or manager if the owner of the source is not the user or manager.  
Direct Emission Sources of electric power production may submit proof document for emissio n from 
providing for power consumption to request deduction of the emission pursuant to subparagraph 1 in 
the foregoing paragraph by the central competent authority.  
The central competent authority may announce and periodically review the targets of carbon  fee and 
the rates pursuant to paragraph 1, based on current status of domestic GHG reduction, types of Emis-
sion Sources, types of GHG emissions, scales of emissions, the situation of voluntary reduction and its 
effectiveness.  
The central competent authori ty shall determine management regulations for calculation methods, col-
lection methods, declaration and payment procedures, payment deadlines, methods for the pursuit of 
insufficient payment, calculation methods for emission quantities, exemption of payment , and other 
binding matters for the carbon fee pursuant to paragraph 1.  
Article 29  
Entities subject to carbon fee who adopt GHG reduction measures that can effectively reduce GHG 
emissions and reach the target designated by the central competent authority , may propose voluntary 
reduction plan to apply for approval of a preferential rate from the central competent authority.  
The central competent authority in consultation with relevant agencies shall determine the designated 
target pursuant to the foregoing  paragraph.  
The central competent authority shall determine management regulations for the preferential rate, ap-
plicants, qualification, documentations to be submitted, content of voluntary reduction program, review 
procedures, revocation, cancellation, co mpensation and other binding matters pursuant to paragraph 1.  
Article 30  
Entities subject to carbon fee may apply to the central competent authority for deducing the emissions 
pursuant to paragraph 1 of the article 28 via reduction credits.  
The central co mpetent authority shall determine management regulations for the eligibility, documenta-
tions to be submitted, the ratio of reduction credits and deduced emissions, limit, review procedures, 
cancellation, recovery of insufficient reduction credits and other  binding matters pursuant to foregoing 
paragraph.  
Article 31  
To avoid carbon leakage, entities who import goods designated by the central competent authority shall 
declare the carbon emissions of the goods to the central competent authority, and acquire the reduction 
credits from the registry pursuant to Article 25,  according to the differences in carbon emission speci-
fied by the central competent authority. Whereas goods that have been subject to emission trading, 
charged for carbon tax or carbon fee in the exporting country that did not receive export rebate, the i m-
porters may submit proof documents to request a deduction of the needed reduction credits from the 
central competent authority.  
Entities shall pay monetary substitution to the central competent authority in case of failing to purchase 
adequate reduction c redits pursuant to the foregoing paragraph.  
The central competent authority in consultation with relevant agencies shall determine management 10 
 regulations for the declaration, review procedures, calculation of the differences in carbon emission, 
deduction, calculation of monetary substitution, payment deadlines, payment procedures, and other 
binding matters pursuant to paragraph 1 and 2.  
Article 32  
The central competent authority shall establish the GHG Management Fund from the following 
sources:  
1. Monetar y substitution  pursuant to the Article 24 and foregoing article and Carbon fee pursuant to the 
Article 28.  
2. Proceeds pursuant to the Article 25 and Article 36;  
3. Proceeds from allowances auctioned or sold by the central competent authority pursuant to the Arti-
cle 25;  
4. Government grants via budget appropriation;  
5. Donations received from persons, liable entities or organizations;  
6. Other incomes.  
Article 33  
The Fund shall serve the following purpose exclusively for GHG emissions reductions and adaptation 
to climate change:  
1. Inspect emission sources.  
2. Subsidies to special municipalities, counties and cities for implementation of GHG reduction.  
3. Subsidies to the central industry competent authorities for implementation of GHG reduction.  
4. Subsidies and grants to entity for investment in GHG reduction technologies.  
5. Conduct  the consultation , subsidies and grants for implementation of GHG reduction other than the 
preceding three paragraph.  
6. Administrative affairs for holding accounts establishment in the Registry, auctions, sales and allow-
ance trading.  
7. Employ staff to carry out administrative services in GHG reduction and management.  
8. Coordinate, plan and promote adaptation to climate change.  
9. Promote related matters concerning carbon footprint.  
10. Education and advocacy of climate change adaptation and GHG reduction.  
11. Conduct climate change and GHG reduction related international affairs.  
12. Carry out research in climate change adaptation and GHG reduction.  
The GHG Administration Fund shall set priority use in research preceding paragraph  (4) and ( 5). 
The central competent authority shall determine regulations regarding targets, application qualifica-
tions, conditions, review procedures, procedures of subsidies and in centives, objects of trade or auc-
tion, restrictions and procedures of transfer, revocation, cancellation, compensation and fees pursuant 
to Paragraphs 1 (2), (3) , (4), (5), and (12). 
Provide assistance, subsidies and grants for efforts to reduce GHG emissio ns, develop low carbon 
technology or negative emission technology, and promote low carbon economy development.  
Article 34  
The central competent authority shall implement the domestic cap -and-trade scheme by considering the 11 
 UNFCCC and its agreements, or re levant international conventions decisions in response to interna-
tional GHG reduction requirements  
After the implementation of accounting, verification and registration as well as establishing regulations 
of voluntary reduction, allocation and allowance tr ading, the central competent authority shall develop 
GHG Cap -and-Trade Scheme Plan, and implement the cap -and-trade scheme in consultation with the 
central industry competent authorities upon approval by the Executive Yuan. The cap -and-trade scheme 
may be implemented in alliance with foreign country governments or international organization.  
Article 35  
The central competent authority shall announce the designated Emission Sources which are included in 
the cap -and-trade scheme, apply aggregate cap limits of  each compliance period, take into account fac-
tors including trade intensities of the various sectors, the costs affected by the cap -and-trade program to 
prevent carbon leakage which may compromise the international efforts to reduce GHG emissions and 
overall national competitiveness. The central competent authority shall allocate emission allowances to 
entities freely, through auction, or for a fixed charge.  
The percentage of sales pursuant to the foregoing paragraph may be adjusted by the tax mechanisms 
imposed on imported fossil fuels.  
The central competent authority may reserve partial emission allowance to stabilize carbon market 
price or may allocate for designated entities with specific scales of new entrants or modified Emission 
Sources.  
The centra l competent authority shall retire the emission allowances returned from Entities upon clo-
sure, permanent shutdown or dissolution, and the ownership of emission allowance freely allocated 
shall not be transferred. In the case that Entities cease operation,  the central competent authority shall 
execute administrative discretion regarding the disposition, if necessary, retirement of emission allow-
ance freely allocated.  
The central competent authority in consultation with the central industry competent authori ties shall 
determine regulations regarding the impact recognition of carbon leakage to the overall national com-
petitiveness, the eligibility, approach and processes of emission allowance allocation, the approaches of 
auction or sale, revocation and cancell ation of emission allowances pursuant to Paragraph 1; the re-
serve of emission allowances, specific scales of new or modified Emission Sources pursuant to Para-
graph 3; the retirement of emission allowances, the processes of ceasing and resuming operation of  
Emission Sources and other binding matters pursuant to the foregoing paragraph.  
Article 36  
Entities who have received allocation of emission allowances shall register the allowances to the hold-
ing accounts in the Registry, and may transfer or trade the allowances; GHG emissions of the entity 
over a period of time specified by the central competent authority, shall not exceed the amount of al-
lowances available to meet the compliance obligations in the entity ’s account upon compliance dead-
line obligation d etermined by the central competent authority.  
Before the deadline for compliance obligations determined by the central competent authority, an entity 
may procure reduction credits from the Offset Projects, Early Action, the voluntary GHG reduction 
programs , transfer, trade and auction to register in the holding account to offset the amount of GHG 
emissions in excess of the emission allowances for an entity. Prior to the deadline of surrendering, the 
remaining emission allowances not used for offsetting the excess emissions cannot be traded before 
verification.  
The procurement of reduction credits from the implementation of Offset Programs, Early Action and 
the voluntary GHG reduction programs pursuant to the foregoing paragraph shall give priority to do-
mesti c efforts.  
The central competent authority in consultation with the central financial authorities shall determine 12 
 regulations regarding administration of Emission Source accounts, the registration and surrendering of 
reduction credits or emission allowance s, objects, procedures and proceeds of transfer, trade and auc-
tion of reduction credits or emissions allowances, and other binding matters pursuant to the three pre-
ceding paragraphs.  
Article 37  
Entities that manufacture, import or sell products, may apply  to the central competent authority for 
carbon footprint labeling.  
The central competent authority may designate certain kind or scale of product, which shall acquire the 
label within specified period and shall mark the label on the container or packaging  of the product.  
The central competent authority shall determine regulations regarding the application of carbon foot-
print, documentations to be submitted, calculation methods, rating, labeling, verification, reviewing, 
audit, use, management, awards, exte nsion, issue (reissue), revocation, cancellation and other binding 
matters pursuant to the foregoing two paragraphs.  
Article 38  
The central competent authority may announce the prohibitions or restrictions on the manufacture, im-
port, export, sell, use or emission of high global warming potential GHGs and products that use such 
GHGs which are regulated by international environmental conventions.  
The manufacture, import, export, sell, use or emission of the designated high global warming potential 
GHGs and products that use such GHGs pursuant to the preceding paragraph shall request for approv-
al, record keeping and reporting to the central competent authority.  
The central competent authority shall determine the application for approval, review procedures, co n-
tents of approval, cancellation, record keeping, reporting, management and other binding matters pur-
suant to the preceding paragraph.  
Article 39  
The capture and use of carbon dioxide shall be conducted according to the regulations determined by 
the centr al competent authority.  
The capture and storage of carbon dioxide conducted by entities, shall be approved by the central com-
petent authority.  
The application pursuant to the foregoing paragraph shall consist of a pilot plan or an implementation 
plan, whic h shall be reviewed by the central competent authority.  The content of the plan shall at least 
include locations, content of the plan, environmental impact and feasibility assessment.  
The central industry competent authorities in consultation with the cent ral competent authority shall 
determine regulations regarding the capture and use of carbon dioxide pursuant to paragraph 1.  
The central competent authority in consultation with the central industry competent authorities shall 
determine regulations regardi ng the approval, review procedures, revocation, cancellation, monitoring, 
record keeping, reporting and other binding matters of the carbon dioxide capture and storage plan pur-
suant to proceeding three paragraph.  
Article 40  
The competent authorities or the industry competent authorities may direct officers, with credentials or 
proof of authorization presented, to conduct a site visit of entities, emission sources or other relevant 
sites for the purposes of inspecting an Emission Source ’s operation, emiss ion related facilities, carbon 
footprint labels, GHGs or related product manufacturing, importation, storage, sell, use, capture and 
use, capture and storage, and requesting provision of relevant information.  The inspected entities may 
not evade, interrup t or refuse such request.  13 
 Article 41  
Examination and measurement bodies shall acquire permits from central competent authority before 
the operation of business related to GHG emissions, emission efficiency and environmental examina-
tion and measurement pur suant to the Act.  
The central competent authority shall determine the required conditions, facilities, prerequisite for ded-
icated personnel, application of the permits, review procedure, certified matter, cancellation, is-
sue/reissue of the permits, suspen sion of business, resuming of business, audit, procedure of evalua-
tion, management and other binding matters.  
The central competent authority shall determine all GHG emissions, emission efficiency and environ-
mental examination and measurement method.  
Chapter 5. Education and Grants  
Article 42  
All levels of government shall promote public awareness and education regarding response to climate 
change mitigation and adaption among citizens, organizations and entities, and proactively assisting 
non-government al organizations in the following matters:  
1. Develop and promote educational plans on response to climate change mitigation and adaptation.  
2. Provide the public with easy access to relevant information about climate change.  
3. Engage industries and the public in developing relevant adaptation response strategies based on local 
environmental characteristic conditions.  
4. Education and training for climate change relevant science, technology and management personnel.  
5. Encourage research, in connection wi th environmental education measures, to compile environmen-
tal education materials on climate change.  
6. Promote energy saving and enhance energy efficiency among the general public.  
7. Other matters officially announced by all levels of governments.  
Artic le 43  
All levels of governments, public educational institutions and government -run enterprises shall pro-
mote energy saving and use energy -efficient products or services to reduce GHG emissions.  
Article 44  
Electricity suppliers and distributors shall prom ote and encourage energy conservation and energy effi-
ciency improvement amongst consumers.  
Article 45  
The central industry competent authorities may reward agencies, institutions, enterprises, schools, or-
ganizations or individuals who perform well in climate change adaptation or GHG reduction and man-
agement with grants or subsidies.  
The central industry competent authorities shall determine regulations regarding conditions, criteria, 
selection processes and other binding matters for the grants or subsi dies pursuant to the foregoing par-
agraph.  
Chapter 6 Penalty Provisions  
Article 46  
Entities in any of the following circumstances shall be fined NT$200,000 to NT$2 million and notified 
to make improvements within a prescribed period of time. Failure to correct within the prescribed peri-
od of time will result in monetary penalty, fined each time an offense occurs. Under severe circum-
stances, the entity may be charged with suspension of operation or business, and be constrained or pro-14 
 hibited from trading.  
1. Violation of Article 21 (1) by providing false information known to be false accounting and registra-
tion. 
2.  Violation of Article 36 (2) by providing false information known to be false registration.  
For those in the two circumstances of the preceding  paragraph, the false registered amount of allow-
ances shall be subtracted from the next renewal allocation by the central competent authorities.  
Article 4 7 
Those who evade, impede, or refuse investigation or information request pursuant to Article 40 sha ll be 
subject to a fine from NT$200,000 to NT$2 million by competent authorities or industry competent au-
thority. The competent authorities may fine each time an offense occurs and enforce inspection.  
Article 4 8 
Entities in violation of Article 21(2) regarding emission accounting, reporting elements, frequency, ver-
ification process and other management requirements, and have been notified to make corrections or 
improvements within a prescribed period of time, failure to correct or improve within the pr escribed 
period of time will be fined NT$100,000 to NT$1 million and notified to make corrections or make 
improvements within a prescribed period of time, failure to correct or improve within the prescribed 
period of time will be fined each time an offense  occurs.  
Verification bodies in violation of Article 22(1) or (2) regarding the required qualification conditions, 
prerequisite for dedicated personnel, permit elements and other binding matters shall be subject to a fi-
ne from NT$100,000 to NT$1 million an d notified to make improvements within a prescribed period 
of time. Failure to correct within the prescribed period of time will result in monetary penalty, fined 
each time an offense occurs.  
Article 49  
Those in any of the following circumstances shall b e fined NT$100,000 to NT$ 1 million and notified 
to make corrections or improvement within a prescribed period of time, failure to correct or improve 
within the prescribed period of time will be fined each time an offense occurs. Under severe circum-
stances , the entity may be charged with suspension of business, and be closed down by order or cancel-
lation of permits if necessary.    
1. Examination and measurement bodies conduct examination and measurement in violation of Article 
41(1) regarding the acquireme nt of permits.  
2. Examination and measurement bodies in violation of Article 41(2) regarding the required conditions, 
facilities, prerequisite for dedicated personnel, application of the permits or other regulations.  
Article 50  
Those in any of the following circumstances shall be fined NT$100,000 to NT$1 million and notified 
to make improvements within a prescribed period of time. Those who fail to complete improvements 
by the prescribed period of time shall be constrained or prohibited from trading . 
1. Violation of Article 25(5) regarding the targets, methods, and other binding matters for transfer, 
trade, and auction.  
2. Violation of Article 36(3) regarding the targets, methods, and other binding matters for transfer, 
trade, and auction.  
Article 51 
Those in any of the following circumstances shall be fined NT$100,000 to NT$1 million and notified 
to make corrections or declaration. Failure to correct or declare within the prescribed period of time 
will be fined each time an offense occurs.  15 
 1. Viola tion of the regulations determined pursuant to Article 24(1) regarding the offset of increased 
GHG emissions.  
2. Violation of the regulations determined pursuant to Article 38(1) regarding the announced prohibi-
tions.  
3. Violation of the regulations determ ined pursuant to Article 38(1) regarding the announced re-
strictions, or the manufacture, import, export, sell, use or emission without request for approval pursu-
ant to 38(2) of the designated high global warming potential GHGs and products that use such GH Gs 
pursuant to 38(1).  
4. Violation of the regulations determined pursuant to Article 38(3) regarding the contents of approval, 
record keeping, reporting or management for the manufacture, import, export, sell, use or emission.  
Article 52  
Those in any of the following circumstances shall be fined NT$100,000 to NT$1 million and notified 
to make corrections or declaration. Failure to correct or declare within the pre -scribed period of time 
will be fined each time an offense occurs.  
1. Entities in violation o f the regulations determined pursuant to Article 39 (2) for permits to capture 
and sequestration of carbon dioxide.  
2. Entities in violation of the regulations determined pursuant to Article 39 (4) for failure to comply 
with the contents of approval.  
3. Vi olation of 39(5) for management regulation regarding monitoring, recordkeeping, reporting or 
management of capture and storage of carbon dioxide.  
Article 5 3 
Those in any of the following circumstances shall be fined NT$100,000 to NT$1 million and notified  
to make improvement within a prescribed period of time by competent authorities. Failure to complete 
improvement within the prescribed period of time will result in monetary penalty, fined each time an 
offense occurs.  
1. Violation of Article 37(1) regardi ng the deadline to acquire approval for carbon footprint or failure 
to mark the label within specified period.  
2. Violation of Article 37(3) regarding the calculation, classification, labeling, use and other relevant 
binding matters.  
Article 54  
If carbon  fee required to be paid in accordance with Article 28(1) or intentionally underreport or fail to 
report any infor -mation that is related to the calculation of carbon fee, the central competent authority 
may calculate the carbon fee at double the carbon fe e rate based on the audited emission.  
If entity evade carbon fee through the methods stated in the preceding paragraph, the central competent 
authority shall not only calculate and collect any evaded carbon fee based on the calculation pursuant 
to article 59, but also recalculate the payable amount backward for up to five years. However, for entity 
that have been subject to carbon fee for less than five years, the payable amount shall be calculated 
from the initial fee charge date.  
For the backdated fee in the preceding paragraph, interest shall be accrued daily, from the day follow-
ing the date of payment deadline notified by the central competent authority or the day when the fee 
evasion started, to the date of payment, based on the fixed annual interest ra te for a one -year time de-
posit with the Directorate General of the Postal Remittances and Savings Bank as of the date of pay-
ment.  
Article 5 5 16 
 Entities that fail to surrender the specified amount of emissions allowances within deadline, in viola-
tion of Article 36 (1), will result in monetary penalty at three times the carbon market price per metric 
ton.  
The central competent authority shall in consultation with the central industry competent authorities, to 
determine the carbon market price ment ioned in the foregoing paragraph, taking into consideration 
domestic and international carbon market trading price, with regular review and announcement.  
Article 5 6 
The period for making corrections, making improvements or reporting for those notified pur suant to 
the Act to make corrections, make improvements or report within a limited period shall be limited to 
ninety days. Those unable to complete improvements by the improvement deadline due to natural dis-
aster or other force majeure shall continue to ma ke improvements after the reason applies and shall, 
within 15 days, apply to competent authorities for the approval of an improvement deadline by submit-
ting a written explanation of cause and relevant information.  
Those entities that are unable to complete  improvements by the deadline in the preceding paragraph 
may, within 30 days after receiving notification, submit specific improvement plans to competent au-
thorities in order to apply for extensions. Competent authorities shall approve the improvement dead-
line based on actual conditions. The maximum extension may not exceed one year; if necessary, it may 
be extended for another one year. Competent authorities may terminate immediately the improvement 
deadline of those that are verified to have failed to str ictly carry out implementation in accordance with 
the improvement plan, and may punish the violators severely.  
Article 5 7 
Unless other regulations apply, the penalties determined in this Act shall be assessed by the central 
competent authority.  
Article 5 8 
The central competent authority shall determine the criteria regarding penalty determination and other 
relevant matters pursuant to the Act.  
Chapter 7 Supplementary Provisions  
Article 59  
For those that fail to pay the fee pursuant to the fee collection  regulations determined pursuant to Arti-
cle 24 (2), Article 2 8 (4), and Article 31 (3) by the deadline, an overdue fine, which shall be assessed at 
a rate of 0.5% of the overdue amount for each day the fees are overdue, shall be paid together with the 
overdue fees. Those that still fail to pay fees 30 days after the deadline shall be fined NT$100,000 to 
NT$1 million which shall be paid by the deadline provided.  
For the fees and overdue fines that shall be required to be paid in the preceding paragraph, inte rest 
shall be accrued daily from the day after the overdue deadline to the date of payment based on the 
fixed annual interest rate for a one -year time deposit with the Directorate General of the Postal Remit-
tances and Savings Bank on the date of payment.  
Article 60  
The central competent authority shall collect such official fees as review fees, testing fees and certifi-
cate fees for the performance of testing, the issuance of permits and certificates, and the review of and 
permitting for all applications ac cepted pursuant to the Act.  
The central competent authority in consultation with relevant agencies shall determine the fee s collec-
tion standards stated in the preceding paragraph.  
Article 61  17 
 The central competent authority shall determine the enforcement rules of the Act.  
Article 62 
The Act shall be effective as of the date of promulgation.