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2023-05-16
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The Ministry of Economic Affairs Partners with Electronics and Information Industry to Drive Low-Carbon Transformation and Seize Sustainable Supply Chain Opportunities
Sustainable Supply Chain
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Illustration:Domestic and International Industry Giants Partner with the Ministry of Economic Affairs to Advocate for the Low-Carbon Transformation and Sustainability Summit

To achieve Taiwan's 2050 net-zero transformation goal, the Ministry of Economic Affairs held the "2023 Low-Carbon Transformation and Sustainability Summit for the Electronics and Information Industry" on May 16, 2023. The summit gathered nearly 20 domestic and international supply chain partners, including electronics and information brands such as Acer, Asus, Dell, Gigabyte, HP, and Microsoft, alongside major EMS companies like Foxconn, Quanta, Compal, Pegatron, Wistron, Inventec, and Lite-On. The event also included the Taiwan Electrical and Electronic Manufacturers' Association (TEEMA), the Taipei Computer Association (TCA), and the Institute for Information Industry (III), all coming together to jointly pledge to reduce carbon emissions and continue promoting Taiwan's role as a key player in the global ICT industry.

 

In his opening remarks, Vice Minister of Economic Affairs Chuan-Neng Lin emphasized that due to global climate change, countries around the world are enacting carbon reduction and net-zero policies. The resulting carbon credits and carbon taxes are expected to significantly impact global industries. To help Taiwan's electronics and information industries, known as the nation's "protective mountains," align with international carbon reduction trends, the Industrial Development Administration of the Ministry of Economic Affairs has promoted a model where leading companies collaborate with smaller suppliers to reduce carbon emissions. This initiative helps supply chain partners accelerate the adoption of the latest low-carbon tools and energy management technologies, encourages the replacement of outdated and energy-intensive equipment, and provides expert consultation and diagnostic services on energy-saving and carbon reduction, creating standout cases of tangible carbon reduction across the supply chain.

 

 

To assist Taiwan's electronics and information companies in understanding international supply chain demands and practices, the summit invited major international brands such as Dell, HP, Acer, and Asus to share their practical experiences in carbon reduction. Additionally, experts from Microsoft, KPMG, SGS Taiwan, Contrel Technology, AUO Envirotech, Sustaihub, InSynerger, eCloudvalley, the Taiwan Institute of Economic Research (TIER), and National Cheng Kung University shared their know-how in various professional fields, including international carbon reduction trends, scientific verification, product design, digital management platforms, and carbon footprint tools. This knowledge is intended to help companies understand their carbon emissions, enabling them to develop targeted carbon reduction measures and reduce their carbon anxiety. Moreover, III, leveraging its years of experience in promoting industry digitalization, has developed a digital trust-based carbon reduction exchange mechanism to assist supply chain partners in collaborating with carbon footprint tool providers.

 

 

The Industrial Development Administration has long maintained close cooperation with foreign companies through the IPO Forum platform, covering areas such as technology research and development, procurement from Taiwan, and innovative applications. Foreign members of the forum have also actively responded to government carbon reduction policies, helping supply chain partners meet carbon reduction targets. In his speech, IPO Forum President Terence Liao noted that Taiwan's supply chain is crucial to the global electronics and information industry. As international partners investing in Taiwan, the forum's representatives will continue to work hand-in-hand with the government to assist Taiwan's supply chain and industries in achieving carbon reduction goals through more innovative approaches.

 

 

TEEMA Chairman Richard Lee and TCA Honorary Chairman Tung Tzu-Hsien stated that in response to the MOEA's goals for upgrading and transforming Taiwan's industries, their associations will fully support initiatives aimed at guiding industry carbon reduction targets, promoting carbon footprint auditing, data traceability, and reducing organizational or product carbon emissions. They will also promote diversified applications of the large-to-small (leading companies helping smaller ones) model, assisting member companies in adopting modern digital tools, completing carbon reduction pathway planning and implementation, and joining the ranks of carbon reduction initiatives to bring tangible carbon reduction benefits to the downstream supply chain.

 

 

Facing the global shift towards net-zero, international brands and their supply chain partners are already setting phased carbon reduction targets from 2030 to 2050 to fulfill their social responsibilities. However, the complex upstream supply chain of electronics and information products, combined with the diversity of carbon footprint activities, makes it challenging to integrate these efforts. Furthermore, selecting accurate emission factor data is even more difficult. To help companies address these issues, IDA introduced during the summit the recently announced "MOEA's Industrial and SME Upgrading and Transformation" guidelines on the Industrial Competitiveness Development Center's website. The guidelines include subsidies for related companies to promote low-carbon and smart upgrades and transformations in manufacturing, using a 1+10 model (one leading company guiding ten supply chain companies) to introduce low-carbon practices, with subsidies of up to NT$30 million per project, or a 1+4 model (one leading company guiding four supply chain companies) to introduce smart practices, with subsidies of up to NT$20 million per project. Applications are now open, and relevant companies are encouraged to apply to accelerate their low-carbon transformation and enhance the international competitiveness of their products.