To enhance domestic understanding of international climate policy developments, the Center for Business Sustainability at National Chengchi University (NCCU) held a forum titled “International Climate Policy and the Development of CBAM” on March 19. The event featured Professor Jacob Werksman, Senior Fellow at NYU School of Law and Principal Adviser to the Director-General for Climate Action at the European Commission.
The forum consisted of a keynote speech followed by a workshop session, bringing together experts from academia, industry, and government to examine the Carbon Border Adjustment Mechanism (CBAM) and discuss Taiwan’s strategic positioning under emerging global carbon pricing frameworks.
Professor Werksman noted that international climate policy has evolved from a purely environmental issue into a strategic framework integrating energy security and economic competitiveness. He highlighted that the European Union has legally committed to achieving climate neutrality by 2050 under the European Climate Law, with an interim target of a 90% emissions reduction by 2040.
CBAM, he explained, functions as a complementary tool to the EU Emissions Trading System (EU ETS), primarily designed to prevent carbon leakage. The mechanism includes carbon cost offset provisions, allowing importers to deduct carbon prices already paid in the country of origin, thereby maintaining a level playing field.
From an economic perspective, Associate Research Fellow Yang Tsung-Han of Academia Sinica indicated that while CBAM’s direct emissions reduction effect is relatively limited, its spillover effect is significant. By incentivizing countries to adopt domestic carbon pricing systems, CBAM could substantially amplify global emissions reduction outcomes.
Professor Su Wei-Chieh of NCCU further analyzed the implications for businesses using the AMC (Awareness, Motivation, Capability) framework. He emphasized that carbon pricing may tighten financing conditions for small and medium-sized enterprises (SMEs), increasing their operational risks and cost burdens. Targeted government support was therefore recommended.
On legal aspects, Professor Shih Wen-Chen of NCCU pointed out that CBAM’s compatibility with World Trade Organization (WTO) rules depends on its legal characterization. She cautioned that Taiwan must carefully align its domestic carbon fee system with potential border adjustment measures to avoid regulatory overlap and trade disputes.
Director-General Tsai Ling-Yi of the Climate Change Administration under the Ministry of Environment stated that Taiwan has officially launched its carbon fee mechanism, with an initial rate proposed at approximately USD 10. A Taiwan version of CBAM is under planning, starting with the cement sector, although challenges remain in aligning carbon accounting standards with major trading partners.
The forum concluded with active discussions on administrative simplification, industrial transition strategies, and future carbon pricing trends. Experts emphasized that Taiwan must strengthen policy coordination and international alignment to maintain its competitiveness amid the global transition toward decarbonization.