Taiwan has transformed into a regional hub for wind energy companies, marking a significant shift in its climate initiatives.

In this year, Taiwan is poised to advance its ambitious climate reforms, which include the introduction of carbon fees and the reinforcement of net-zero policies that will reshape the operations of the private sector, as outlined by the country’s new environment chief.

Starting January 1, 2024, companies in the power generation and manufacturing sectors that generate over 25,000 tonnes of carbon emissions annually will be required to pay emission fees, according to Shieu Fuh-sheng, Taiwan’s inaugural environment minister, in an exclusive interview with Nikkei Asia. He noted that 512 companies fall within this category.

These reforms come in the wake of Taiwan elevating its environmental agency to a cabinet-level ministry, accompanied by a pivotal climate change law that establishes a net-zero carbon target for 2050 and introduces a carbon fee system.

In light of Taiwan’s critical role in the global semiconductor and tech supply chain, these plans underscore President Tsai Ing-wen’s government’s commitment to showcasing leadership amid the ongoing global challenge of climate change.