This study employs input-output structural decomposition analysis to examine emission trends and effects of industrial CO2 emission changes in Taiwan during 1981-1991, Results indicate that the primary factor for the increase of CO2 emission is the level of domestic final demand and exports; however, the effect of an increasing rate of added value is less obvious, On the other hand, the effects of a decreasing industrial CO2 intensity is a main reducing factor, next is the structure of domestic final demand, and the rate of domestic production to intermediate input also has partial reducing effects for CO2 emission, Besides, the structure change of exports has only low reducing effects, Results presented herein can provide valuable information regarding the characteristics and key factors of CO2 emission in the industrial development process, This information can also serve as a basic reference for the CO2 reduction plan in Taiwan,