Due to the intensification of global warming in recent years, countries have succes-sively announced national targets of "carbon neutrality" or "net zero emission". Taiwan is also carrying out the amendment draft of the climate change response law, explicitly in-corporating the goal of achieving net zero emission in 2050 into the law and updating the carbon fee collection mechanism, which has a considerable risk for enterprises in the cost of carbon emission in the future. Therefore, this paper uses Taiwan publicly listed compa-nies that disclose environmental protection expenditure and carbon emissions from 2018 to 2020 as the research sample to explore the relationship between environmental costs such as environmental protection expenditure and carbon emission cost and corporate performance after charging carbon fees in Taiwan in the future. The empirical results show that: firstly, environmental protection expenditure is positively related to corporate performance. Although it will impact corporate performance due to increased expenditure in the short term, in the long term, environmental protection expenditure will gradually have a positive impact on corporate performance; Secondly, there is a significant negative relation between carbon emission costs and corporate performance. When enterprises in-ternalize the environmental and social costs of carbon pollution, it will reduce their corpo-rate performance. Carbon reduction has become a global trend. Therefore, it is urgent for enterprises to adjust their operation structure to adapt to the environment, reduce costs and strive for sustainable development.
