Net Zero Trends

Taiwan's Carbon Footprint Label: A Decade of Progress and New Legal Frameworks

Taiwan has been promoting the Carbon Footprint Label for over a decade under the "Guidelines for Managing Product Carbon Footprints," initiated by the Environmental Protection Administration (EPA). After products undergo carbon footprint calculation and verification, they can apply for the label through relevant authorities. This initiative began on a trial basis in 2010. As of now, there are 596 valid carbon footprint labels, primarily for everyday products such as food, cooking oils, chemical materials and their derivatives, and beverages.

With the enactment of the Climate Change Response Act, the "Voluntary Product Carbon Footprint Management Regulations" have elevated the administrative status of carbon footprint management. Yeh Hsin-Chun, Deputy Director of the Adaptation and Resilience Division at the Ministry of Environment, noted that while the system builds on the existing framework, its higher status allows for more comprehensive carbon footprint disclosure. This aims to encourage a broader understanding and accountability for carbon emissions in product life cycles.

The first domestic carbon trading transaction was completed on December 11, involving a project where the Taipei 101 parking lot adopted high-efficiency light sources. A total of 30 metric tons of carbon credits were traded at 3,500 NTD per ton, with Taiwan Local Regeneration Company as the buyer. The total transaction value was 105,000 NTD. The general manager of the Carbon Exchange, Tian Jianzhong, stated that Taiwan Local Regeneration Company must also report the use of these carbon credits to the Ministry of the Environment.

The domestic carbon trading platform went live on October 2, with an initial offering of six projects. However, five of these projects were delisted after failing to make any sales within a month.

A new best ally for renewable energy storage! In response to global energy transitions and the trend towards net-zero emissions, Taipower is actively developing diverse energy sources.
To strengthen the resilience of the power grid, following the 20MW energy storage systems at the Tainan Salt Field Solar Power Plant and the Kaohsiung Luyuan Substation, as well as the 60MW energy storage system launched earlier this year at the Longtan Ultra-High Voltage Substation, Taipower has now unveiled another 60MW energy storage system in Dongshan, Yilan, with an inauguration ceremony held yesterday (20th).
According to Taipower, the energy storage system features rapid charging and discharging capabilities, which help regulate the frequency of renewable energy integration into the grid and provide immediate stable power during unexpected electrical events, thereby enhancing the stability and flexibility of the power system.

Minister of the Environment attended the Taichung Zero Waste Manufacturing Center Commercial Transition Ceremony today and signed a Carbon Capture Cooperation Memorandum of Understanding with TSMC Senior Vice President , announcing that the two companies will work together to achieve the long-term goal of net-zero carbon emissions through in-depth cooperation in the areas of carbon capture, carbon emissions reduction, and green technology innovations. The collaboration represents a joint commitment by the Ministry of the Environment and TSMC to emphasize global climate change and reduce greenhouse gas emissions. The collaboration will focus on the development and demonstration of technology applications, feasibility assessment of general waste treatment facilities, regulatory adaptation of climate change response laws, and dissemination of successful experiences.

AUO  announced  that the Taise has published the list of companies certified with the Net Zero certification. Among them, AUO achieved a 32% absolute reduction in "production facility emissions"  in 2023, becoming the first company in Taiwan to not only meet the 25% reduction standard required for the Gold-Level certification, but also to be recognized as the first company in Taiwan to earn the prestigious "Gold-Level" Net Zero certification.

Asia Cement has achieved another important milestone in the net-zero campaign, winning the “Net-Zero Mark” certification for the third time from the Taiwan Net-Zero Action Alliance, and leaping from the original “Green Level” to “Silver Level”, making it a benchmark enterprise in the field of low-carbon development.

TCC's Green Supply Chain Alliance was established, Mr. Nelson Chang,Chairman of Taiwan Cement emphasized at the conference that the cement produced by TCC around the world is the lowest-carbon product in the region. He anticipated that Taiwan's future carbon fee system would incorporate scope 3 carbon emissions, and bluntly stated that “the success factor of doing business in the future is carbon", and that TCC suppliers who failed to recognize the concept and provide a carbon footprint would not be TCC suppliers in the future, and would be shaved off from TCC's supply chain if they failed to reduce carbon emissions in the future.
 

In the face of worsening global climate change, the manufacturing industry is facing an increasingly urgent challenge to reduce carbon emissions. In order to help the industry meet this challenge, Deloitte & Touche and Institute for Information Industry co-organized the “Towards Net Zero: Carbon Reduction Practices for the Manufacturing Industry” seminar today (15). The seminar focused on the global trend of net-zero carbon emissions and specific carbon reduction practices, emphasizing the importance of carbon reduction in the manufacturing industry and the key role of digital technology in realizing low-carbon transformation, helping enterprises to cope with the increasingly stringent carbon emission regulations and meeting the needs of tourists and consumers who are increasingly concerned about their carbon footprints.

In next year's total budget released by the Executive Yuan, $116.1 billion has been allocated for 12 key strategies for net-zero transformation. Among them, President Lai Ching-Te's promotion of secondary energy transformation will result in a budget of $4.1 billion for next year's forward-looking energy-related programs, an annual increase of 36%. The related funds will be invested in advanced energy sources and technologies such as geothermal energy, hydrogen energy, and carbon capture and storage.

Chimei Corporation and the Industrial Technology Research Institute have revolutionized the plastics industry with their groundbreaking carbon capture technology. By winning the R&D 100 Award, they have demonstrated the feasibility of producing high-performance plastics with significantly reduced carbon footprints.

The Environmental Protection Administration (EPA) held its fifth carbon tax rate review meeting on September 9th to discuss the formulation of rate-setting legislation, rate adjustment plans, and the impact assessment of different rate schemes on individual industries. The review committee preliminarily recommended a starting price of NT$300 to NT$500 per metric ton for the general rate, which is expected to increase to NT$1,200 to NT$1,800 by 2030. Preferential rates will be reserved for discussion at the next meeting.

With the support of Governor Newsom, Deputy Secretary of Energy David Crane, Senator Alex Padilla, and other officials, California launched the country's inaugural hydrogen hub last month. This significant step marks the state's commitment to reducing carbon emissions through clean energy sources.

Ammonia fuel is a type of energy source that uses ammonia (NH₃) as fuel. Ammonia is a carbon-free molecule, and its combustion does not directly produce carbon dioxide, making it highly promising in reducing greenhouse gas emissions. Ammonia fuel can be produced in various ways, including extraction from natural gas, which may result in some carbon emissions, or by generating "green ammonia" through water electrolysis and combining hydrogen with nitrogen. This process relies entirely on renewable energy, making it more environmentally friendly.

Whether it's the industrialization of AI or the future applications of AI across various industries, climate considerations are indispensable. Suitable investment targets for the Climate Change Response Fund are not limited to Taipower; high-tech manufacturing must comply with the RE100 initiative, and traditional industries such as steel and petrochemicals also need to undergo low-carbon transformation. Water usage, energy consumption, and carbon emissions—each presents challenges, but also opportunities.

The state of emergency triggered by climate change is intensifying, and the threats to human health are becoming increasingly apparent. On the 13th, medical institutions and financial industry representatives gathered for the first time to engage in dialogue and establish partnerships to address the current crisis. Minister of Health and Welfare, Chiu Tai-yuan, praised the growing number of hospitals proactively joining the net-zero movement and promised that the government would allocate more resources, urging clinics to prepare in advance. Financial industry representatives also pledged to leverage the power of sustainable finance to help the healthcare system enhance energy efficiency and accelerate the path to net zero.

According to UN statistics, buildings account for 37% of global greenhouse gas emissions during construction and operation, second only to manufacturing. This highlights the critical role of building decarbonization in Taiwan's journey towards net-zero emissions. AUO, a leading player in the photovoltaic industry, has been deeply engaged in smart green energy, energy efficiency, and power application solutions. The company has also ventured into the construction sector, promoting Building-Integrated Photovoltaics (BIPV) technology. By collaborating with supply chain partners, AUO aims to achieve the vision of sustainable net-zero buildings.

The Department of Forestry and Nature Conservation Agency of the Ministry of Agriculture, in collaboration with the Taiwan Institute for Sustainable Energy (TAISE), co-hosted the "2024 Taiwan Biodiversity Forum and Biodiversity Exemplary Awards Ceremony." A total of 24 projects competed, with 15 exemplary cases selected, including two groups each winning three gold awards.

The New Taipei City Government continues to promote carbon reduction in engineering and net-zero buildings, building on last year's efforts and achieving new heights. This year's "New Taipei Net Zero, City on BIM" seminar was grandly held on July 8th. The event was inaugurated by Deputy Mayor Chunjing Chen, who delivered a speech on behalf of Mayor Youyi Hou, declaring the goal of fully disclosing building carbon emissions by 2026. This provides a forward-looking blueprint for the city's advanced deployment in urban construction.

Bank SinoPac, leading the industry, has pioneered the Green Energy Trading Trust Platform. Leveraging its financial strength, the bank accelerates Taiwan's net-zero sustainability goals. On the 2nd, it signed a cooperation agreement with YIHO International Energy Co., Ltd., Yihwa Green Energy Mart, to introduce the Green Energy Trading Trust, facilitating transactions between upstream power generators and buyers/sellers of green energy. 

On June 19, Asia Cement and U-Ming Marine held the maiden voyage ceremony for the eco-friendly cement ship "Asia Cement No. 9" at Hualien Port. Asia Cement's General Manager, Lee Kun-Yen, stated that the commissioning of this new ship not only enhances the transportation capacity of cement products but also significantly reduces carbon emissions during the voyage, fulfilling the group's commitment to environmental protection.

In 2023, global temperatures rose by 1.48°C, significantly surpassing the record for the hottest year on record and approaching the 1.5°C target set by the 2015 Paris Agreement. The urgency to reduce carbon emissions and cool the planet cannot be overstated. Far EasTone Telecommunications has diligently audited all carbon emissions generated throughout its internal operations and product life cycles. As the first telecom company in the nation to pass the Science-Based Targets initiative (SBTi) audit under the 1.5°C scenario, Far EasTone has recently been awarded the 1.5°C Climate Target Label by CommonWealth Magazine.

On May 21, Taiwan Cement Corporation held its shareholders' meeting, officially announcing that the 78-year-old Taiwan Cement Corporation, after seven years of active low-carbon transformation towards an international presence, will transition into a holding company. The English name will change from Taiwan Cement Corporation to TCC Group Holdings, spanning 11 industries and operating in 13 international markets globally.

ASE Technology Holding Co., Ltd. Executive Director Joseph Tung stated that ASE and its subsidiaries are actively procuring renewable energy to achieve their corporate carbon reduction goals. By partnering with their subsidiaries and signing a letter of intent for cooperation with TCC Green Energy, ASE aims not only to enhance the overall competitiveness of the company but also to meet the commitments made to their clients and fulfill their own sustainability objectives.

CSC will uphold the philosophy of "No Best, Only Better" and implement various water-saving measures following the 4R strategy to realize a circular economy. The company will continue to invest in the research and development of desalinated seawater, not only to stabilize and strengthen CSC's water resilience but also to increase Taiwan Water Corporation's capacity to support residential water use. This demonstrates CSC's commitment to sustainable development for mutual benefit with society.

Far EasTone Telecommunications has achieved significant energy savings in its operations. By utilizing an energy management system, they have reduced the total electricity consumption of their stores by 10% annually. Additionally, through the innovative 5G "AI Base Station Location" system, which minimizes unnecessary duplicate investments, along with intelligent mixing and dormancy technologies, they have been able to cut base station energy consumption by up to 46%. This reduction is equivalent to approximately 50,000 tons of carbon emissions annually. This accomplishment has earned Far EasTone the "Sustainability Impact to my Enterprise" award at the global Schneider Electric Sustainability Impact Awards 2023, making it the only Taiwanese company to receive this honor.