The amendment of the Resource Circulation Promotion Act (the “Act”; formerly known as the Resource Recycling Act) was passed in the third reading by the Legislative Yuan in June 2026, thereby completing the legislative amendment process.

 

This amendment represents the most significant revision since the initial enactment of the Act in 2002. While the original legislation focused primarily on the traditional recycling and treatment of waste, the amended Act expands the concept of resource utilization to cover the entire product life cycle, including product design, manufacturing, use, and recycling. Notably, the amended Act emphasizes sustainability and circularity at the product design stage. Key points of particular relevance to businesses are summarized as follows:

 

1.    Green Design:

 

Drawing reference from the European Union’s 2024 Ecodesign for Sustainable Products Regulation (ESPR), the amended Act requires the central competent authority to establish green design principles for “products” and “construction works.” These principles include specifying the use of single, easily decomposable, disassemblable, or recyclable materials, and mandating a certain proportion or quantity of recycled materials. The central competent authority will further formulate green design guidelines based on these principles, and may designate and announce specific types and scales of products that must comply with green design requirements. For construction works of a certain scale, as designated and announced by the central competent authority, the responsible government agency or developer must adhere to the green design guidelines during the planning, design, and construction phases. (Articles 13 to 15 of the Act)

 

2.    Source Reduction:

 

To prevent resource waste caused by single-use items, the amended Act authorizes the central competent authority to designate and announce targets and methods for the reuse and reduction of certain items or their packaging and containers. Businesses are required to submit plans and reports on the reuse and reduction of packaging and containers, as well as implementation results. Additionally, the central competent authority may announce prohibitions or restrictions on the manufacture, import, sale, or use of specific items or their packaging and containers. Local competent authorities may, based on local environmental management needs, enact stricter autonomous regulations or control measures, subject to approval by the central competent authority. (Articles 16 to 18 of the Act)

 

3.    Incentive Mechanisms:

 

To promote the development of the resource circulation industry, the amended Act allows investments by enterprises in research and development, talent cultivation, and equipment procurement related to circular utilization and sustainable management to qualify for tax reductions or exemptions in accordance with the Customs Act, the Statute for Industrial Innovation, or other applicable laws. Also, the central competent authority may coordinate with relevant agencies, financial institutions, and credit guarantee institutions to provide priority access to financing and credit guarantees for enterprises investing in resource circulation initiatives. (Articles 34 and 35 of the Act)

 

Except for Article 14 and Paragraph 1, Article 38 of the Act, which pertain to mandatory green design requirements and penalties and, to allow time for supporting measures to be established, will take effect two years after promulgation, all the other provisions will come into force on the date of promulgation (June 17, 2026).