Climate Change Administration

The EU Carbon Border Adjustment Mechanism (CBAM) takes effect this year. Regulated products imported into the EU must declare their embedded carbon emissions, which EU-recognized verification bodies will verify. Following carbon price adjustment calculations, CBAM certificate fees will be paid starting in 2027.

Ministry of Environment Minister Peng Chi-Ming convened a seminar today (February 13) with the Ministry of Economic Affairs and 20 domestic greenhouse gas verification bodies. Minister Peng emphasized that in facing the CBAM challenge, we are "One Team." Taiwan possesses a sound and comprehensive greenhouse gas verification mechanism and capability, and the government will work alongside verification bodies to prepare and reduce the verification cost burden for domestic manufacturers exporting to the EU.

The EU has successively released CBAM-related implementing regulations and delegated regulations, among which the verification of embedded emissions must be conducted by verification bodies accredited by the EU or its Member States. Non-EU verification bodies must first apply to a National Accreditation Body (NAB) of an EU Member State. The application process is highly intricate, requiring complete technical capability documentation as well as on-site evaluation and auditing by the NAB of applicant personnel's practical operational performance and professional expertise.

However, the EU's detailed guidance or standards regarding verification implementation have not yet been published, nor has the application process been opened for verification bodies. In Taiwan, the main targets affected by CBAM are approximately 2,600 manufacturers of steel products. According to the top 20 CBAM importing countries list published by the EU at the end of 2025, Taiwan ranks 13th, with a total product weight of 3.74 million metric tons.

The Ministry of Environment conducted a targeted survey on the preparedness of the 20 approved domestic greenhouse gas verification bodies for EU CBAM, finding that while domestic bodies already possess personnel qualified to perform CBAM tasks, they are still analyzing implementation details. Furthermore, during the seminar, verification bodies generally reflected main difficulties including overly frequent changes in EU regulations, a lack of EU-officially recognized training materials, and unclear application procedures and review requirements for accreditation.

In response to the feedback from verification bodies, Minister Peng emphasized that the Ministry of Environment and the 20 domestic verification bodies, along with more than 200 verification personnel, share an inseparable partnership and fully support corporate decarbonization with professional capability and impartiality. Consequently, he instructed the Climate Change Agency, the Bureau of Standards, Metrology and Inspection of the Ministry of Economic Affairs, and the Taiwan Accreditation Foundation to hold regular seminars with verification bodies to continuously enhance verification expertise. To address EU CBAM issues, a working group will be established with verification bodies to analyze and discuss the latest regulations and implementation details, aligning with international standards and meeting corporate needs. Meanwhile, the government will communicate at the forefront with the EU side to provide relevant information to domestic verification bodies and enterprises promptly, ensuring that enterprises gain green competitiveness and maintain Taiwan's position as a core node in the global supply chain.