Last updated: 6 October 2026
In Taiwan, “carbon credits” commonly refers to emission reduction credits: greenhouse gas reductions meeting a recognised programme's requirements are converted into credits that can be transferred and used under the rules. Before buying, businesses should confirm intended use, eligibility and cancellation requirements. A low price does not mean a credit can offset carbon fees or support a carbon neutrality claim.
What Are Carbon Credits? Distinguish Reduction Credits from Emission Allowances First
Reduction credits represent reductions recognised under a programme, while emission allowances authorise emissions under a cap-and-trade system. They arise from different sources. This article focuses on how Taiwan businesses assess the acquisition and use of reduction credits, starting with understanding what they are buying.
Article 3 of the Climate Change Response Act separately defines reduction credits and emission allowances; the former covers voluntary reduction, offset and early-action projects. If the documentation only says “carbon credits”, ask the provider to specify the issuing programme, project name, credit type, vintage and serial numbers before discussing price and use.
| Term | Main meaning | What businesses should confirm |
|---|---|---|
| Reduction credits / carbon credits in this article | Emission reductions issued as credits under a recognised programme | Credit type, source, eligible schemes and whether already used |
| Emission allowances | Permission to emit under a cap-and-trade system | The relevant regulatory system and compliance rules |
| Carbon fee | A statutory charge on qualifying emission sources | Coverage, chargeable emissions and applicable rate |
| Carbon tax | Pricing carbon emissions through taxation | The relevant country's taxable entities and tax system |
For the definition of a carbon fee, see Article 2 of the Regulations Governing the Collection of Carbon Fees; for carbon pricing concepts involving carbon taxes and emissions trading, see the World Bank's carbon pricing explanation. Paying carbon fees does not confer carbon credits, and a credit quotation is not a carbon fee rate.
Who Needs to Understand Carbon Credits? Identify the Problem You Need to Solve
Businesses seeking carbon fee deductions, offsets for incremental emissions under environmental impact assessment (EIA), or carbon neutrality should first check the credit requirements for each use. Each has its own review and disclosure requirements; one purchase cannot be treated as fulfilling all obligations at once.
| Potential use | Starting point | Questions before purchasing |
|---|---|---|
| Deduction from emissions subject to carbon fees | Carbon fee collection regulations and credit eligibility | Which credits can the business use? What is the maximum deduction after conversion? |
| Offsets for incremental emissions under EIA | Project-specific EIA commitments and relevant offset rules | Do these project credits meet the required type, quantity and timeframe for the case? |
| Carbon neutrality claims | Inventory boundaries, reduction results and claims guidance | Have residual emissions been quantified? Can credits be cancelled while avoiding double claims? |
For the first two uses, refer to the Ministry of Environment's explanation of domestic credit trading; check claim conditions against the Guidelines for Corporate Carbon Neutrality Claims. State the intended use and applicable conditions directly in procurement requirements. Simply requesting “a certain number of tonnes of carbon credits” leaves quotations without a comparable basis.
How Do You Start Trading Carbon Credits in Taiwan?
Begin with official portals, distinguish domestic credit administration from market trading, and apply under the rules in effect. The Taiwan Stock Exchange (TWSE) introduction to the Taiwan Carbon Solution Exchange (TCX) records that TCX opened on 7 August 2023; the Ministry of Environment's October 2024 announcement confirms the launch of public trading in domestic reduction credits.
| Suggested sequence | Key actions | Records to retain |
|---|---|---|
| Define the intended use | Determine the credits needed from inventory results, regulations or claims requirements | Required-quantity calculations and acceptable credit conditions |
| Find the application portal | For domestic credits, check the Ministry of Environment management system; for trading, check TCX | Application conditions, company information and relevant agreements |
| Check the project | Read public information and verify credit source, vintage, quantity and use | Project descriptions, issuance records and applicability assessments |
| Confirm purchase terms | Check prices, fees, payment and transfer arrangements under platform procedures | Quotations and transaction documents |
| Complete the intended use | Apply for deductions or offsets according to the use, completing cancellation where necessary | Complete proof of transfer, cancellation and filing |
The official TCX website provides separate portals for domestic and international credits; the Ministry of Environment's Reduction Credit Management System manages domestic credit holdings, trading applications and use. Search cases through the domestic credit public information portal and the credit marketplace. This workflow is a procurement preparation recommendation; specific documents and sequencing remain subject to the platform's current instructions.
What Do Carbon Credits Cost? Historical Prices Are Not Today's Quotes
Taiwan has no single carbon credit price applicable to every project. Check current listing or transaction information for the credits you need. On 21 October 2024, the Ministry of Environment announced that the first 6 projects listed a total of 6,080 metric tonnes of carbon dioxide equivalent, at NT$2,500–4,000 per metric tonne.
These figures represent listing volumes and prices at that time, not total traded volume, average transaction prices or current 2026 prices. For budgeting, record credit unit prices, related service fees, allowable deduction ratios and the business's applicable fee rate separately. Do not directly compare only the “price per tonne” with the “carbon fee per tonne”.
Even when two quotations have the same price per tonne, differences in credit type or eligible usage year can change what the business can achieve. Confirm applicability before comparing prices. For global market context, read ICAP international carbon trading trends and carbon market systems around the world.
Can Domestic Carbon Credits Offset Carbon Fees? How Is the 10% Calculated?
Businesses can apply to deduct chargeable emissions under the rules; purchase expenditure is not directly credited against the carbon fee bill. Articles 9–11 of the Regulations Governing the Collection of Carbon Fees cap domestic-credit deductions at 10% of chargeable emissions and set conversion ratios by credit source.
| Credit source | Emissions deduction ratio per credit unit | Additional conditions |
|---|---|---|
| Voluntary reduction or offset project credits | 1.2 | Still subject to the domestic-credit deduction cap |
| Early-action project credits: businesses without high carbon leakage risk | 0.3 | May be used only during the first three years after carbon fee collection begins |
| Early-action project credits: recognised high carbon leakage risk businesses | 0.1 | May be used only during the first three years after carbon fee collection begins |
Suppose a business has 12,000 metric tonnes of chargeable emissions before credit deductions. Domestic credits can deduct at most 1,200 metric tonnes; if only eligible credits with a ratio of 1.2 are used, 1,000 credit units are needed. This is an illustrative calculation based on the provisions, not actual corporate results, and excludes purchase costs. The quantity of credits required and the emissions deducted are different figures.
Under Article 11 of the same regulations, deduction applications must include proof of credit cancellation and be submitted with the carbon fee filing by the end of May each year. Article 10 separately sets conditions for businesses without high carbon leakage risk to use foreign credits recognised by the competent authority, capped at 5% of chargeable emissions. Availability on an international platform does not establish eligibility to offset Taiwan's carbon fees. For an overview and rates, see the explanation of Taiwan's carbon fee.
Where Do Carbon Credits Come From, and How Do You Check Reduction Quality?
Domestic reduction credits must be obtained under the applicable project programme. Simply reducing electricity use or completing a corporate inventory does not automatically generate tradable credits. To develop a reduction project, consult methods and procedures on the Ministry of Environment's Voluntary Reduction and Offset Information Platform and check administrative information in the Credit Management System.
Buyers should separately assess whether a project appears environmentally beneficial and whether its credits meet the conditions for use. Under the Ministry of Environment's carbon neutrality guidelines, credits and projects used for carbon neutrality should meet conditions including reality, uniqueness, avoidance of double counting, additionality and permanence. Additionality asks whether reductions go beyond what is legally required or would otherwise have occurred.
If documentation consists only of a purchase receipt, request project and credit identifiers, issuance and cancellation records, and an explanation of any purposes to which the credits have already been assigned. Internally, keep inventory records, reduction performance and credit-use records separately, then reconcile them for the same period and entity. This prevents external offsets from being misrecorded as internal emissions reductions.
Frequently Asked Questions about Taiwan Carbon Credits
Purchasing, holding, cancelling and applying for deductions have different meanings. These questions can help clarify your requirements before seeking quotes.
What is the price of carbon credits in Taiwan?
There is no single current price this article can quote universally. The first 6 projects announced by the Ministry of Environment in October 2024 were listed at NT$2,500–4,000 per metric tonne. These are historical listing figures, not current quotations or average transaction prices. Check current project information before purchasing.
How much can domestic carbon credits offset carbon fees?
Under Article 9 of the Regulations Governing the Collection of Carbon Fees, domestic credits may be used to apply for deductions capped at 10% of chargeable emissions, with conversion based on credit type. Purchase expenditure is not directly credited against carbon fees, and not all credits deduct emissions at a one-to-one ratio.
Where do carbon credits come from? Does saving electricity automatically generate credits?
Domestic reduction credits come from voluntary reduction, offset or early-action projects recognised under the rules. Energy efficiency can be a reduction measure, but actual results must still undergo application, quantification and review under the applicable programme. Lower electricity bills or lower inventory emissions do not automatically become tradable credits.
Can purchased foreign credits directly offset Taiwan's carbon fees?
This cannot be assumed. Article 10 of the Regulations Governing the Collection of Carbon Fees sets requirements for recognition by the competent authority, business eligibility and caps. Buying on an international trading platform does not establish eligibility for Taiwan's deductions. Confirm recognition for each credit case.
Can buying carbon credits support a carbon neutrality claim on its own?
It is not enough. Under Ministry of Environment guidance, businesses must first conduct an inventory, implement reductions and explain residual emissions. If offsets are used, eligible credits must be cancelled and publicly disclosed. A purchase receipt cannot replace these tasks.
Next Step: Quantify Emissions Before Deciding How to Use Credits
Start with a carbon inventory to confirm emissions data, then read the explanation of carbon neutrality claims when preparing a claim. Sustaihub's DCarbon provides automated organisational carbon inventories, an AI document assistant and AI inventory reports. The system supports data organisation and calculation, while third-party bodies perform formal verification.
Carbon Management Fundamentals Series
Start with carbon inventories and explore regulations, costs and emissions reduction targets as needed:
- What Is a Carbon Inventory? 5 Steps, Regulatory Requirements and Tool Selection
- Greenhouse Gas Inventories: Which Businesses Must Register? Schedules, Guidance and Categories 1–6
- What Is Taiwan's Carbon Fee? Rates, Coverage, Calculations and Payment Schedule
- What Is a Carbon Footprint? Product Calculations, ISO 14067 and Emission Factor Lookup
- What Are Scopes 1, 2 and 3? The 15 Scope 3 Categories and ISO 14064-1 Mapping
- What Are Carbon Credits? Trading, Prices and Carbon Fee Offset Rules in Taiwan (this article)
- What Are Net-Zero Emissions? Taiwan's 2050 Pathway and First Steps for Businesses
- What Is Carbon Neutrality? ISO 14068-1, the 2026 Edition and Ministry of Environment Claims Guidance
