Entities with Emission Sources designated by the central competent authority shall conduct emission inventories to be submitted to the Registry by the deadline. For entities designated by the central competent authority, the data about emission inventories shall be verified by a verification body.
The central competent authority shall determine management regulations for the inventories of GHG emissions, reporting and registration frequency, record keeping, reporting items and deadline, verification processes, management and other binding matters related to the foregoing paragraph.

Verification bodies shall apply for and acquire accreditation certificates and permits from the central competent authority or its appointed accreditation body before starting to conduct verification.
The central competent authority shall determine management regulations for the prerequisite for application, review procedures, granting, permission, graded verification scope, supervision, inspection, revocation, and cancellation, as well as the prerequisites for dedicated personnel, training, qualification, cancellation, management, and other binding matters for verification body permits pursuant to the foregoing paragraph.
The central competent authority shall determine management regulations for qualification, requirements for commissioning or decommissioning, and other binding matters for an accreditation body pursuant to Paragraph 1.

The production process of equipment designated by the central competent authority shall comply with GHG emissions performance standards.
The manufacture and importation of vehicles specified by the central competent authority for domestic use shall meet GHG performance standards.
The structure of and installations in new buildings shall conform to the GHG emission mitigation requirements.
The central competent authority in consultation with the central industry competent authorities shall determine the regulations on performance standards pursuant to Paragraphs 1 and 2 and the foregoing paragraph on mitigation of GHG emissions and inspection. The regulations shall be made available to the public after requesting approval from the Executive Yuan.

Entities with newly installed or modified Emission Sources that reach a certain scale shall offset their increased GHG emissions based on a certain percentage of increased emissions. If there are difficulties in offsetting the increased emissions due to special circumstances, entities may pay a monetary sum in lieu of actual GHG reductions, after requesting and receiving approval by the competent authority.
The central competent authority shall determine management regulations for specific scales, offsetting ratios, timelines, sources for offsetting, application for submitting monetary substitution payments, approval procedures, calculation of monetary substitutions, payment deadlines, payment methods and other binding matters pursuant to the foregoing paragraph.

Entities and governments at all levels may independently or jointly propose voluntary emission reduction programs and implement GHG reduction measures, to apply for reduction credits from the central competent authority. The reduction credits should be used in accordance with the conditions and deadlines stipulated by the central competent authority.
The central competent authority shall assign the measure of voluntary emission reduction measures in the foregoing paragraph or the inspection method of the reduction performance, based on the types of projects.
Entities or governments at all levels, who implement GHG Offset Projects and Early Action Projects, and the voluntary emission reduction project mentioned in the first paragraph to achieve reduction credits, shall apply to the central competent authority to set up an account, where they can publish their reduction credits on a platform assigned by the central competent authority for transfer, trade or auction.
The central competent authority shall determine management regulations for applicable candidates, application procedures, voluntary emission reduction methods, project content, review and approval procedures, calculation of reduction credits, and conditions for the use of such credits, deadlines, withdrawal, special case or reduction credit cancellation, management and other binding matters.
The central competent authority shall determine regulations regarding the information needed when opening up an account pursuant to the third paragraph, account management, reduction credit transfer and trade, number limits, proceeds, targets of reduction credit auctions, methods, and other binding matters.

The reduction credits in the previous article serve the following purpose:
1. Offset the increased GHG emissions pursuant to Article 24 (1).
2. Deduct the amount of each type of emissions pursuant to Article 28 (1).
3. Deduct the amount of differences in carbon emissions pursuant to Article 31 (1).
4. Offset the amount of excess GHG emissions pursuant to Article 36 (2).
5. Other purposes recognized by the central competent authorities.

Entities that obtain reduction credits from overseas, shall deduct the amount of emissions pursuant to all subparagraphs in Article 28 (1) or offset the excess of the emission allowances pursuant to Article 36 (2) after getting recognized by the central competent authority.
The central competent authority, in consultation with the central industry competent authorities, may determine regulations related to recognizing overseas reduction credits, deduction of the amount of emissions, and offsetting excess amounts of emissions, by considering the UNFCCC, its agreements and/or related international convention decisions, as well as factors that include but are not limited to: energy efficiency, domestic reduction credits, emission allowances and long-term national GHG emission targets.

To achieve the long-term national GHG emission reduction goal and periodic regulatory goals, the central competent authority may impose carbon fees in stages against Direct and Indirect GHG Emission Sources, listed as follows:
1. Direct Emission Sources: fee shall be collected based on the quantity of emissions from the owners of the Emission Sources; or from the actual user or manager if the owner of the source is not the user or manager.
2. Indirect Emission Sources: fee shall be collected based on the quantity of indirect emissions generated from the use of electricity from the owners of the Emission Sources; or from the actual user or manager if the owner of the source is not the user or manager.
In order to apply to the central competent authority for deductions to emission amounts, pursuant to subparagraph 1 of the foregoing paragraph, those responsible for Direct Emission Sources from electric power production shall submit documentation of proof concerning emissions by consumers of power provided by Direct Emission Sources.
For the fee rates in Paragraph 1, the Carbon Fee Rate Review Committee established by the central competent authority shall periodically perform reviews based on the current status of domestic GHG reduction, types of Emission Sources, types of GHG emissions, scales of emissions, the voluntary reduction situation, their effectiveness, and other relevant factors. Subsequently, the review of the committee will be submitted to the central competent authority for approval and official announcements.
The central competent authority shall determine management regulations for calculation methods, collection methods, declaration and payment procedures, payment deadlines, methods for the pursuit of insufficient payment, calculation methods for emission quantities, exemption of payment, and other binding matters for the carbon fees pursuant to Paragraph 1.

Entities subject to carbon fees who switch to low carbon fuels, adopt negative emission technologies, increase energy efficiency, use renewable energy or take measures to reduce GHG emissions effectively by improving manufacturing processes and reaching goals designated by the central competent authority, may propose voluntary reduction plans and apply for a preferential rate from the central competent authority.
The central competent authority shall determine the targets of the previous paragraph, in consultation with relevant government agencies.
The central competent authority shall determine the preferential rate pursuant to Paragraph 1, the targets of applicants, qualifications, documentations to be submitted, the content of the voluntary reduction plan, review procedure, cancellation, and other binding matters.

Entities subject to carbon fees may apply to the central competent authority for deductions of emissions by using the reduction credits pursuant to all subparagraphs in Article 28 (1).
The central competent authority shall determine management regulations for the applicants, qualification, documentations to be submitted, the deduction rate, upper limit, review procedures, cancellation, credit makeup and other binding matters pursuant to the foregoing paragraph.

To avoid carbon leakage, entities who import goods designated by the central competent authority shall report the amount of total carbon emissions of the products, and obtain reduction credits from the platform specified in Article 25, according to the differences between carbon emissions declared and those audited by the central competent authority. Regarding goods that have been charged carbon taxes or carbon
fees in an exporting country that has started emission trading, the importers do not receive export rebates. The importers shall apply to the central competent authority to obtain reduction credits upon providing documents of proof.
Entities shall pay monetary substitutions to the central competent authority in cases where they fail to purchase adequate reduction credits pursuant to the foregoing paragraph.
The central competent authority in consultation with relevant agencies shall determine management regulations for declaration, review procedures, the calculation of the differences in carbon emission, the deduction rate, the calculation of monetary substitution, payment deadlines, payment procedures, and other binding matters pursuant to Paragraphs 1 and 2.

The central competent authority shall establish the GHG Management Fund from the following sources:
1. Monetary substitution specified in Article 24 and the previous article and carbon fees in Article 28
2. Proceeds from Article 25 and Article 36
3. Proceeds from allowances auctioned or sold pursuant to Article 35
4. Government grants via budget appropriation
5. Donations received from persons, liable entities or organizations
6. Other revenue

The Fund shall serve the following purpose exclusively for GHG emissions reductions and adaptation to climate change:
1. Inspect emission sources
2. Subsidize to special municipalities, counties and cities for implementation of GHG reduction
3. Subsidize to the central industry competent authorities for implementation of GHG reduction
4. Subsidize and grants to entities for investment in GHG reduction technologies
5. Providing assistance, subsidies, and grants for efforts to reduce GHG emissions other than the three items mentioned above, and research and develop GHG reduction technologies
6. Administrative affairs for holding accounts establishment in the Registry, auctions, sales and allowance trading
7. Employ staff to carry out administrative services in GHG reduction and management
8. Coordinate, plan and implement adaptation to climate change
9. Promote related matters concerning carbon footprint management mechanism
10. Educate the public and promote related matters concerning climate change and GHG reduction
11. Conduct climate change and GHG reduction related international affairs
12. Assist the central competent agency to execute just transition
13. Carry out research in climate change adaptation and GHG reduction
The central competent agency should propose a report every two years detailing how the fund is spent, reviewing the execution performance, and then releasing it to the public.
The central competent authority shall determine regulations regarding targets, application qualifications, conditions, review procedures, procedures of subsidies and incentives, cancellation, compensation and fees pursuant to Paragraph 1 (2-5) and Paragraph 13, and other binding matters.

The central competent authority shall implement the domestic cap-and-trade scheme by considering the UNFCCC and its agreements, or relevant international convention decisions in response to international GHG reduction requirements
After accounting, verification and registration as well as establishing regulations for voluntary reduction, allowance allocation and trading, the central competent authority shall develop a GHG Cap-and-Trade Scheme Plan, and implement the cap-and-trade scheme in consultation with the central industry competent authorities upon approval by the Executive Yuan. The cap and-trade scheme may be implemented in alliance with foreign country governments or international organizations under mutual agreement.

The central competent authority shall announce the designated emission sources which are included in the cap-and-trade program, set the total cap emission target in stages. When implementing the cap-and-trade program, factors such as the trade intensity of various industries, reduction cost and other factors should be taken into consideration, in order to avoid carbon leakage from affecting international efforts to reduce GHG emissions and the country’s overall competitiveness. According to the aforementioned principles, the emission allowances of the emission sources corresponding to the total cap at each stage are allocated to the entities through free allocation, auction or sell by a fixed charge.
The percentage of sell allowance pursuant to the foregoing paragraph may be deducted by the tax or fee mechanisms imposed on imported fossil fuels.
When the central competent authority allocates the emission allowances for public utilities, the central competent authority shall deduct the amount of which is indirectly emitted from the energy consumption of emission sources.
The central competent authority may reserve partial emission allowances to stabilize the carbon market price or may allocate for designated entities with specific scales of new entrants or modified emission sources.
The central competent authority shall retrieve the emission allowances returned from entities upon closure, permanent shutdown or dissolution, and the ownership of emission allowance freely allocated shall not be transferred.
In the case that entities cease operation, the central competent authority shall execute administrative discretion regarding the disposition, and retrieve the free emission allowances when necessary. The central competent authority in consultation with the central industry competent authorities shall determine regulations regarding the identification of the impact of carbon leakage in various industries on the overall competitiveness of the country, the eligibility, approach and processes of emission allowance allocation, the approaches of auction or sale, revocation and cancellation of emission allowances pursuant to Paragraph 1; the reserve of emission allowances, specific scales of new or modified emission sources pursuant to Paragraph 4; the retrieve of emission allowances, the processes of ceasing and resuming operation of emission sources and other binding matters pursuant to the foregoing paragraph.

Entities that have received an allocation of emission allowances shall apply for an account from the central competent authority and disclose the information regarding the emission allowances on the platform designated by the central competent authority. Entities may transfer or trade the emission allowances. GHG emissions of the entity over a period of time specified by the central competent authority shall not exceed the amount of allowances available to meet the compliance obligations in the entity’s account upon compliance of deadline obligation determined by the central competent authority.
Before the deadline for compliance obligations determined by the central competent authority, an entity may procure reduction credits from the Offset Projects, Early Action, the voluntary GHG reduction programs, transfer, trade and auction to register in the holding account to offset the amount of GHG emissions in excess of the emission allowances for an entity. Prior to the deadline of surrendering, the remaining emission allowances not used for offsetting the excess emissions cannot be traded before verification.
The central competent authority shall commission the central financial authority or any agency(institution) assigned by the central financial authority to conduct the allowance and credit trading pursuant to Article 25 (1), 27 (1) and Paragraph 1 in the previous article.
The central competent authority shall determine the documentation required to set up the accounts pursuant to the first and the second paragraphs, account management, deduction, members for allowance and credit transfer and trade, proceeds, and other binding matters. The central competent authority shall consult with the central financial authority to agree on allowance and credit trading related matters in the foregoing paragraph.

The central competent authority may designate certain kinds or scales of products, and the entities that manufacture, import, or sell these products shall apply to the central competent authority for carbon footprint labeling within a specified period. The central competent authority shall review, inspect, and calculate the carbon footprint for products, which be marked the labels on the container or packaging of the product according to their approved content and grading, within a prescribed period.
Entities that manufacture, import, or sell products other than the ones described in the previous paragraph, may apply to the central competent authority for carbon footprint labeling. The central competent authority shall review, inspect, and calculate the carbon footprint for products, which shall be used according to their approved content and grading.
The central competent authority shall determine the regulations regarding the application of carbon footprint, documentations to be submitted, reviewing, inspection, calculation methods, grading, labeling, use, expiry dates, cancellation, management, and other binding matters as well as the regulation of award pursuant to the second paragraph.

The central competent authority may prohibit or restrict the manufacture, import, export, sale, use or emission of high global warming potential GHGs and products that use such GHGs which are regulated by international environmental conventions.
Entities that manufacture, import, export, sell, use or emit high global warming potential GHGs and products that use such GHGs announced in the preceding paragraph shall apply to the central competent authority for approval, recording, and reporting.
The central competent authority shall determine the application, review procedure, cancellation, record, report, management, and other binding matters in the foregoing paragraph.

The capture and use of carbon dioxide by entities shall be conducted in accordance with the regulations determined by the central competent authority.
The capture and storage of carbon dioxide conducted by entities shall be approved by the central competent authority.
The application pursuant to capture and storage of carbon dioxide of the foregoing paragraph shall consist of a pilot plan or an implementation plan, which shall be reviewed by the central competent authority. The content of the plan shall at least include locations, storage method, environmental impact, feasibility assessment, and environmental monitoring.
Entities that are approved to capture and store carbon dioxide shall execute the approved content, continue to monitor the environment during the storage period, and submit monitoring records to the competent authority on a regular basis.
The central competent authority in consultation with the central industry competent authorities shall determine regulations regarding the approval, review procedures, cancellation, monitoring, record keeping, reporting, management, and other binding matters of the carbon dioxide capture and storage plan pursuant to the foregoing three paragraphs.

The competent authorities or the industry competent authorities may direct officers with credentials or proof of authorization to conduct a site visit on entities, emission sources or other relevant sites for the purpose of inspecting an Emission Source’s operation, emission-related facilities, carbon footprint labels, GHGs or related product manufacturing, importation, sale, use, capture and use, capture and storage, and request provision of relevant information. The inspected entities may not evade, interrupt or refuse such request.

The testing agencies shall obtain licenses approved by the central competent authority before conducting tests on the amount of GHG emissions, emission performance, and the environment specified in the Act.
The central competent authorities shall determine the requirements of the testing institutions in the foregoing paragraph, including the conditions, facilities, qualification of testing personnel, application of permits, reviewing procedure, permission, cancellation, approval or renewal of permits, suspension or resumption of business, inspection, evaluation procedure, management, and other binding matters.
The central competent authority shall determine the testing methods of all types of GHGs, emission performance, and the environment specified in the Act.