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Methodology and sources

This page is the foundation: every formula written out, every figure linked to its source with a verification date. If a number is stale or a formula wrong, tell me; verified corrections ship.

Formulas

Taiwan carbon fee

Annual fee = chargeable emissions × rate. Standard: chargeable = emissions − 25,000 t (K value). Approved high-leakage entities: chargeable = emissions × 0.2 (period-one coefficient; 0.4 and 0.6 later), no K deduction. Entities under 25,000 t are not charged. Payment year = emission year + 1.

General-rate trajectory

Frozen mode holds NT$300. Trajectory mode interpolates linearly from NT$300 (2025) to NT$1,200 (2030), the lower bound of the review committee guidance, about NT$180 per year. Preferential A and B stay at NT$50 and NT$100 in both modes since no official path exists. All of it is modelling assumption, not gazetted rates.

Filed intensity on the default basis (with mark-up)

Per the opening paragraph of Annex I to IR (EU) 2025/2621 (as replaced by IR (EU) 2026/1740): when filing on country defaults, filed intensity = base default × (1 + mark-up), with the mark-up at 10% in 2026, 20% in 2027 and 30% from 2028 onward. Taiwan fasteners CN 7318: base 2.707, 2.978 for 2026. That figure is now computed rather than looked up: recital (10) of 2026/1740 deleted the pre-computed marked-up columns and left the CBAM Registry to derive them from the “total emissions” column. Measured filings (accredited verification) carry no mark-up. The tool’s filing-basis switch moves between these two paths.

CBAM gross cost: default filing path

Per Equations 1 and 6 of the Annex to IR (EU) 2025/2620: certificates per tonne = max(0, filed intensity − retained share × CSCF × Column B benchmark). The retained share is the CBAM factor of Art. 10a(1a) of the ETS Directive and means the share of free allocation EU producers keep, not the share an importer pays: 97.5% (2026), 95% (2027), 90% (2028), 77.5% (2029), 51.5% (2030). Per Annex point 5.1 the benchmark follows the production route the 2025/2621 annex designates for Taiwan: carbon-steel BF/BOF (C) for the three steel categories, 1.370 for 7208, 1.491 for 7308, 1.364 for 7318; secondary aluminium (L) 0.152 for 7604 profiles. Gross (€) = tonnes × certificates per tonne × certificate price, slider €60 to 120, default €75.

CBAM gross cost: measured filing path

A different set of equations, not the same one. Per Annex point 3 of IR (EU) 2025/2620: Equation 2 gives the process level, SFAProc = CBAM factor × CSCF × Column A benchmark (BMg*, 0.038 for 7318); Equation 4 gives the complex good, SEFA = SFAProc + Σ mass ratio × precursor SEFA. So certificates per tonne = max(0, measured intensity − retained share × CSCF × (Column A + wire rod per tonne × the wire rod’s Column B 1.364)). Before 2026-08-16 the tool used Column B for both paths and left the deduction side out of the mass-ratio adjustment; both are corrected. Whether the precursor SEFA carries the CBAM factor and CSCF is not restated in point 3.3; the tool applies them, since every other SEFA in the Annex carries both and applying them deducts less, which errs toward a higher bill.

Measured-path intensity (fasteners)

Fasteners (CN 7318) have been on the CBAM goods list since the original Annex I to Regulation (EU) 2023/956; they are not a downstream good brought in later. As a complex good, measured-path intensity = wire-rod carbon content (tCO2e per tonne of wire rod) × wire rod used per tonne of product (default 1.0, editable) + the plant’s own process direct emissions. The system boundary comes from point 3.16.2 of Annex I to IR (EU) 2025/2547: re-heating, forging, annealing, coating, galvanizing, wire drawing and pickling are inside; plating, cutting, welding and finishing are outside. So plating really is excluded, but forging and heat treatment are not. The 0.409 default for own process emissions is derived, not a regulated value (Taiwan’s CN 7318 default 2.707 minus the CN 7213 wire-rod default 2.298, assuming a 1.0 mass ratio); type over it once you have your own fuel figures. The China Steel option pre-fills 1.86, the billet figure disclosed in October 2024, as an order of magnitude; rolling adds a little, and the supplier’s CBAM data sheet governs the actual filing. The gap table = default-filing gross (with mark-up) − measured-path gross, same year, price and FX.

Net after deduction (scenario)

Effective Taiwan carbon price (€/tCO2e) = annual fee ÷ plant emissions ÷ FX, where the annual fee is anchored on the preferential rate B scenario (338 of the 402 approved voluntary reduction plans in the first round landed on rate B, the most common outcome), not the general rate; checking against the general-rate fee yields a higher effective price. Deductible = tonnes × intensity × effective price; net = max(0, gross − deductible). A direct expansion of CBAM Article 9; the implementing rules are still a draft (2026-05-13) and Taiwan is not yet recognised, so this is a scenario, not an entitlement.

FX and units

Default 1 € = NT$34.5 (rough, as of 2026-08, editable in the tool). Amounts rounded to integers with thousands separators.

Sources (with verification dates)

Every entry is a figure the tool actually uses. The date is when we last verified it, not when it expires.

Disclaimer

  • This tool estimates from public information for preliminary assessment only; it is not legal, tax, customs or investment advice.
  • Neither this tool nor any paid report files declarations on your behalf or issues verification documents; filing agency and verification sit within the licence of accountants and accredited verifiers.
  • Official obligations follow MOENV, the Climate Change Administration and the European Commission; figures and rules change.
  • Three things are not established and are labelled rather than guessed. One: the cross-sectoral correction factor (CSCF) for 2026 to 2030 has not been published, so the tool uses 1.0 as an assumption. Two: CBAM benchmarks are settled for 2026 only; recital (10) of IR 2025/2620 applies updated benchmarks from 2027, so 2027 to 2030 here is extrapolation. Three: apart from the fastener precursor (wire rod, CN 7213), precursor CN codes and benchmarks are not verified per category, so a measured filing in those categories deducts only at the process level and the result is an upper bound on cost.
  • The conversion rules for the Article 9 origin-country carbon price deduction sit in a separate implementing act; the tool uses the simplified form the article states on its face, and it needs re-checking before an actual filing.
  • The deduction scenario rests on a draft EU implementing regulation; whether and how much can be deducted follows the final rules.
  • The 50 t mass exemption counts a single EU importer’s CBAM goods across the year, not a Taiwanese exporter’s shipments. The same volume spread across several small importers can be exempt in full, so the real cost depends on how your customers’ import volumes are structured.
  • Business decisions made with this tool are at your own risk.

Corrections

Found a stale figure, dead link or formula error? Reach me on LINE with the entry, the correct value and its source; verified corrections are published with a revision note here.

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