Industrial Development Administration, Ministry of Economic Affairs

In March 2022, the National Development Council (NDC) published “Taiwan’s Pathway to Net-Zero Emissions in 2050,” which provides a clear trajectory and action path towards the goal of net-zero emissions by 2050, promoting technology, research and innovation in key areas, and guiding industries towards green transition. In addition, the NDC also announced that Taiwan’s pathway to net-zero emissions will be based on the 4 major transition strategies of “Energy Transition,” “Industrial Transition,” “Lifestyle Transition,” and “Social Transition,” as well as the 2 governance foundations of “Technology R&D” and “Climate Legislation,” The pathway will be supported by the “12 Key Strategies,” aiming to develop action plans for key areas of expected growth with regard to energy, industry, and life transition so as to implement net-zero transition goals. This project assists in net-zero related policy planning, conducts forward-looking technology tracking and application evaluation, and assists in related net-zero management and examination business within the department.

Reducing industrial carbon emissions is no longer an issue of improving corporate competitiveness, but an issue of viability. In considering of the requirements of global supply chains as well as the draft of the Carbon Border Adjustment Mechanism (CBAM), the future carbon inventory will be extended to all industries, even including the calculation of the carbon footprints of all products. Therefore, it is a necessity to accelerate the proliferation mechanism for the carbon inventory and carbon footprints. Therefore, this project will be promoted by large companies and small companies, and by combining teamwork and government guidance and facilitations. The IDA will guide large companies together with the supply chain and industrial chain to reduce carbon emissions, and gradually form a systematic and organized approach to them in tact. Peering or integrating the upstream, middle and downstream industry value chain to jointly propose carbon management solutions, and ultimately accelerating the pace of net-zero in the entire industry through the high diffusion of the supply chain.

The AR6 Work Group III Report on climate change mitigation released by the IPCC (IPCC AR6 WGIII) in April 2022 pointed out that reducing industrial emissions requires coordination of the entire value chain to implement all reduction plans. In order to respond to international goal and keep up with the net-zero pace of major international manufacturers, the Ministry of Economic Affairs and the Federation of Industry and Commerce jointly launched a call in 2023 to call on 60 industry associations and member manufacturers such as steel, petrochemicals, cement, textiles, and paper-making to establish the “Industrial Carbon Neutral Alliance”. This project prioritizes the promotion of net-zero emissions in response to the Industrial Carbon Neutrality Alliance. The Alliance will cooperate with leading companies to identify those who are lacking of domestic/foreign regulation and supply chain requirements, and are urgently in need of government facilitations, so that the inventory and carbon reduction consultation services can be provided.

Integrating the promotion of the above-mentioned net-zero work, this project is based on four major principles of “net-zero policy planning, collaboration on cross-domain issues, net-zero management evaluation-supported decision-making, carbon reduction capacity building, carbon neutrality alliance industry linkage” to promote industries in moving step-by-step towards the goal of net-zero emissions.