ULSCM

News

News > Domestic News

Carbon fees are coming, green inflation may become the norm

The carbon fee is about to be launched. Wu Daren, CEO of the Taiwan Economic Center, analyzed that in recent years, companies have gone beyond carbon footprint inspections and actively invested in advanced equipment, process redesign, etc., with the intention of reducing carbon emissions and complying with international environmental protection trends, which means that production costs will increase. In the future Costs will also be passed on to product prices, pushing up inflationary pressure. In the future, annual CPI growth rates of 2% to 2.5% may become the norm.

Wu Daren pointed out that in recent years, climate change has not only affected our lives, but has also become one of the driving forces for growth. Typhoons have not come and water shortages have affected fruit and earthquake planting. The typhoon last year and the recent typhoon Kemi, rainfall and wind Under the impact of the epidemic, in addition to the economic losses caused by the reduction of working days, the prices of fruits and vegetables have also increased significantly. The trend of global net zero carbon emissions and employment carbon charges will further exacerbate the inflationary pressure on China.

If the construction industry uses a large amount of epoxy resin and concrete, it will be the first to bear the brunt. Yang Yuquan, the All-China Federation of Real Estate Development Companies, and the imposition of carbon fees are expected to further push up housing prices. In the future, housing prices will increase by at least 5%. Coupled with labor shortages and inflation, the However, although Taipower is a large carbon emitter, for users to generate electricity, the calculation of carbon emissions from power generation is borne by the electricity users themselves. Taipower pays for its own "power consumption in the factory" free of charge.
However, the annual carbon emission from electricity consumption in the factory is 500 tons per year. If the carbon fee per ton reaches 300 yuan, it will cost about 1.5 billion. Assuming it reaches 1,000 yuan,

That would cost 5 billion yuan. Taipower stated that it will strengthen the independent reduction plans of each power plant to reduce carbon emissions as much as possible. Stabilizing prices is one of the responsibilities of the central bank. However, Wu Daren believes that the issue of carbon fees driving up inflation cannot be changed or alleviated through the central bank's interest rate policy. The government may have to develop subsidies for manufacturers, such as upgrading carbon emission equipment, Manufacturers improve their process technology to obtain government policy support to reduce the impact on inflation.

The Carbon Fee Review Committee will hold its fifth meeting on September 9 to discuss the rate. Industrial and commercial groups are arguing that the carbon fee should not exceed 300 yuan. The Federation of Industry and Commerce said that if the carbon fee exceeds 300 yuan, the company will not be able to achieve the designated target and will not be able to get the tax. If carbon leakage risk discounts or preferential rates are reached, profits may turn into losses. If the carbon fee exceeds 500 yuan, many companies may even face the crisis of bankruptcy. Taking a certain steel company as an example, the Federation of Industry and Commerce estimates that emissions from tuition in 2022 will be 19 million tons.

If the carbon fee is set at 500 yuan, a carbon fee of 9.5 billion yuan will be paid a year. In addition, a certain cement industry has a tuition emission of 4.5 million tons, and a carbon fee of 2.25 billion yuan will be paid every year. Such a high carbon fee , I am afraid it will be difficult for these companies to survive. The Third Party Committee suggested that the carbon fee should not exceed 100 yuan in the initial stage, and that the tax collection standard should take CPI into consideration to avoid causing green inflation. In addition, there are products that are levied with carbon fees in Taiwan. The same imported products should also be levied with carbon fees, and the goods tax should be abolished at the same time.

Original URL: Carbon fees are coming, green inflation may become the norm | Haofang.com News https://news.housefun.com.tw/news/article/657804436589.html

 

 

Contact info@fujyilin.com.tw Privacy Policy
Address : No.17-1, SHAU ANN St., Zhongzheng Dist., Taipei City 10071, Taiwan (R.O.C.) TEL : +886-2-2301-5900 FAX : +886-2-2307-5424