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Taiwan weighs stricter air pollution rules that could force factory shutdowns

Taiwan’s lawmakers have proposed changes to air pollution laws that could force factories to halt operations if permit reviews are delayed, raising concerns over energy stability and supply chains.

The draft amendments, put forward by lawmakers from the opposition Kuomintang (KMT) and the Taiwan People’s Party (TPP), would shorten the validity of pollution permits to two years from the current three to five, and require authorities to complete renewal reviews within two months. If the deadline is missed, operators would be required to suspend operations.

The proposal would also empower local governments to revise permit conditions or restrict the use of certain fuels if they believe there is a risk to public health.

KMT lawmaker Lo Ting-wei said the changes aim to align central and local authorities, arguing that municipalities bearing the brunt of air pollution should have stronger regulatory tools.

“Air pollution is borne locally, so local governments should have the authority to manage it,” Lo said, adding the amendments would help advance Taiwan’s goal of phasing out coal use by 2028.

Lawmakers backing the proposal also criticised current rules that allow companies to continue operating while permit renewal applications are under review, describing them as an unreasonable safeguard.

But environment minister Peng Chi-ming warned the changes could have far-reaching consequences. Of the roughly 13,000 pollution permits issued nationwide, about 60 per cent cover essential services such as hospitals and hotels, he said.

“If operations must stop when reviews exceed two months, it would disrupt daily life and public services,” Peng said, noting that each permit requires on-site inspections and that shorter validity periods would significantly increase administrative workloads.

Peng also raised concerns over what he described as vague provisions allowing local authorities to act on perceived “health risks,” saying differing standards between jurisdictions could leave businesses uncertain about compliance requirements.

Industry groups echoed those concerns. The Chinese National Federation of Industries warned the amendments could lead to inconsistent enforcement, delays in permit reviews and forced shutdowns, affecting up to 8,000 companies and potentially undermining Taiwan’s energy stability.

Taiwan’s Ministry of Economic Affairs urged lawmakers to maintain the current regulatory framework, saying the proposed two-month review deadline could disrupt supply chains and lead to economic losses if operations are halted.

The ministry added that shortening permit durations would require more frequent applications, particularly in heavily regulated areas in western Taiwan, increasing pressure on high-tech manufacturers and power plants. It also warned that granting local governments the authority to restrict fuels such as coal and natural gas could threaten the stability of electricity supply.

State utility Taipower and the economic ministry later said they welcomed the decision to delay further deliberation.

Environmental and public health groups, however, backed the proposed changes, calling for stronger measures to reduce coal use and improve air quality.

Separately, Democratic Progressive Party (DPP) lawmaker Lin Shu-fen criticised the government’s handling of ozone pollution, noting that key precursor chemicals such as ethylene and propylene are not currently subject to pollution fees.

“For 30 years, pollution fees have been collected, but the most critical substances behind ozone have never been charged,” Lin said, urging the environment ministry to investigate major emitters in industrial areas including Kaohsiung and Yunlin within a month.

With divisions remaining across political parties, government agencies and industry, lawmakers agreed to hold a public hearing on 14 May before proceeding with further discussions on the amendments.

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