Subsidy Rates Amended to Encourage Scrap Vehicle Recyclers to Improve Processing Efficiency


The EPA amended the End-of-Life Vehicle Recycling, Disassembly, Shredding and Sorting Subsidy Rates to provide economic incentives for end-of-life vehicle (ELV) treatment enterprises to increase the resource recycling rates. The amendments also aim to reduce waste and boost the recycling efficiency of valuable materials (such as shredded steel and waste plastic). The subsidy rates go up as the amount of recycled ELV waste or the recycling rate increases.

To strengthen waste treatment capacity and improve recycling quality with enhanced treatment technology and equipment, the EPA adjusted the subsidy rates for shredding and sorting scrap automobiles. After ELVs are turned in for recycling, they are first dismantled to allow any valuable components to be recycled. Then the scrapped vehicle exteriors are sent to a processing plant to be shredded and sorted. To motivate processing plants to increase sorting efficiency, subsidies are calculated and handed out based on the resource recycling rate and the certified volumes of shredded steel.

Most processing plants have already achieved a resource recycling rate of 75%. To further increase the amount of recycled materials from shredding and sorting processing plants, the revised End-of-Life Vehicle Recycling, Disassembly, Shredding and Sorting Subsidy Rates will be promulgated on 1 May 2020. The revisions added two subsidy categories to incentivize enterprises to increase their resource recycling rate by boosting sorting technology and equipment, or by optimizing processing procedure. In addition, a sunset clause was added to encourage processors to raise sorting efficiency and increase the output of recycled materials. All these are aiming to increase the economic value of the ELV recycling industry. Details on the amended subsidy rates are shown in the chart below. 

Excerpt from Environmental Policy Monthly, 23 (5)

Environmental Protection Administration, R.O.C.(Taiwan)
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