| How does the net-zero carbon movement impact businesses? |
| In today’s "carbon has a price" era, companies must reduce emissions to comply with government regulations and global sustainability trends. This enhances ESG ratings and supply chain competitiveness. Major corporations are now requiring their suppliers to use green energy, directly influencing business operations and investment decisions. |
| What is carbon auditing, and how should businesses approach it? |
| A carbon audit is a way for companies to measure their total emissions across three scopes: direct emissions (Scope 1), electricity use (Scope 2), and supply chain emissions (Scope 3). Businesses can adopt the ISO 14064-1 standard, track emissions data, and implement reduction strategies to stay compliant. |
| What carbon disclosure requirements apply to publicly listed companies? |
| Starting in 2025, Taiwan’s Financial Supervisory Commission (FSC) will require all publicly traded companies to publish annual sustainability reports. These reports must include carbon emissions data, reduction targets, energy sources, and progress on sustainability efforts, ensuring greater ESG transparency. |
| What are the obligations for high-energy-consuming users? |
| Companies with contracted power loads above 5,000 kW must comply in one of three ways: building a solar power plant, investing in energy storage, purchasing green electricity, or paying a carbon fee. Failing to meet these obligations may result in penalties. |
| Why should businesses that are not classified as heavy electricity users still buy green power? |
| Many global brands and supply chains now mandate green electricity usage (like RE100). Without it, companies risk losing business opportunities. By investing in solar power or purchasing green electricity, businesses can cut carbon costs and avoid future carbon taxes. |
| What is RE100? |
| RE100 is a global initiative urging companies to switch to 100% renewable energy. Members commit to a timeline for complete green power adoption. Companies like Google and Apple are leading this movement, influencing worldwide supply chains. |
| What do CSR, ESG, and SDGs mean? |
| - CSR (Corporate Social Responsibility): How companies give back to society. - ESG (Environmental, Social, Governance): Measures a company’s sustainability and ethical operations. - SDGs (Sustainable Development Goals): UN-led global goals including climate action and responsible energy use to drive worldwide sustainability efforts |
| What obligations do high-carbon-emitting businesses face? |
| Taiwan is implementing a carbon fee system targeting companies emitting over 25,000 metric tons of CO2e annually—covering power, gas, and manufacturing industries. Fees are calculated based on total emissions × levy rate, affecting around 500 factories (54% of national emissions). |
| How does the carbon fee relate to green energy? |
| Businesses can replace traditional electricity with green power to reduce Scope 2 emissions, lowering carbon fee and tax burdens. Companies use carbon credits or increased green electricity purchases to meet emission targets. |
| What are CBAM and CCA? |
| - CBAM (Carbon Border Adjustment Mechanism): EU’s carbon tariff, preventing unfair competition from high-emission countries. - CCA (Clean Competition Act): U.S.’s carbon tariff, designed to promote global emissions reductions. Businesses should reduce emissions first, then purchase carbon credits if necessary to offset impact |