Taiwan's MOENV Expands Carbon Footprint Verification Targets with New Thresholds

The Ministry of Environment (MOENV) in Taiwan has unveiled plans for the third wave of the mandatory Carbon Footprint Verification (CFV) program, broadening its scope to include non-manufacturing sectors such as department stores, mass merchandising, telecommunications, rail transportation, large hospitals, and schools—industries characterized by high electricity consumption. The initiative also introduces a new threshold based on energy use, which will extend further into the manufacturing sector. A trial application is slated for August next year.

The forthcoming threshold is expected to be significantly reduced from the current standard of 25,000 tons of carbon emissions per year. Preliminary estimates suggest the threshold may be lowered to around 5,000 tons per year.

Currently, 302 companies, encompassing 553 factories, are subject to CFV requirements. These entities have completed greenhouse gas emissions inventories for the previous year, reporting cumulative direct emissions of approximately 214.5 million metric tons of carbon dioxide equivalent (MMT CO2e) and indirect energy-related emissions of 54.6 MMT CO2e.

The expansion under the third wave will considerably increase the number of entities subject to CFV requirements, though companies added under this phase will not face inspections or carbon fees during the transitional period. MOENV emphasized this leniency aims to facilitate compliance and preparation among the newly included industries.

Environmental advocacy groups and experts have highlighted that the current 25,000-ton threshold accounts for only 54% of Taiwan's carbon emissions, prompting calls for broader coverage. To address this, the next phase of the CFV program will likely adopt a "fuel usage" threshold. Entities utilizing coal, fuel oil, or other fossil fuels with emissions equivalent to approximately 5,000 tons will be subject to reporting requirements.

Officials are also refining the threshold criteria to align with the Air Pollution Act, ensuring industries have clear guidelines for compliance. This alignment is expected to streamline future inspections and enhance emissions management.