Press Releases

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National Project of Hope: Net-Zero Transition, Sustainable Taiwan

Source (Chinese): https://taiwan2024.tw/policies/6

• Stable power supply is the premise for net-zero transition
  • New construction of large power units, growth of nearly 7 times:
    • President Ma Ying-jeou approved 1 power plant with 3 units in 8 years, totaling 2.68 million kilowatts;
    • President Tsai Ing-wen approved 6 power plants with 18 units in 7 years, totaling 17.01 million kilowatts.
  • Continuously stable power supply:
    • Future electricity demand will increase by 7 million kilowatts from 2023 to 2030.
    • Large power units are expected to net increase by 9.1 million kilowatts from 2023 to 2030, significantly exceeding electricity demand. Adding renewable energy and storage systems, the power supply will become increasingly abundant and stable.
  • Reserve capacity ratio shows Taiwan does not lack electricity:
    • In 2022, the daily peak load reached a new high of 40.59 million kilowatts. The reserve capacity ratio days ratio was above 10% for 79.5% of the time, 6-10% for 20%, and below 6% for 0.5%, indicating Taiwan does not have a power shortage issue.
• Five major strategies for 2050 net-zero transition
  • Initiate the second energy transition to build a smart shared green energy strategy
  • Promote digital and green dual-axis transformation of industries
  • Shape a net-zero sustainable green lifestyle
  • The government as the strongest and most effective supporter of net-zero transformation
  • Just transition that leaves no one behind
• First energy transition: Reduce coal, increase gas, expand green, non-nuclear
• Second energy transition: Smart shared green energy strategy, power decarbonization
  • Develop diverse green energies: Solar photovoltaic, ocean energy, biomass, hydrogen, geothermal power generation, wind power
  • Deep energy saving, technological energy storage, strong and resilient power grid
• Strategy 1: Second energy transition
  • Develop diverse green energies
    • Layout cutting-edge energies: In addition to traditional solar and wind power, accelerate the development of geothermal power, hydrogen, biomass, ocean energy, and other cutting-edge renewable energies.
    • Formulate a hydrogen energy development strategy: Continuously introduce hydrogen as an application in power supply, industrial processes, and transportation vehicles.
  • Deep energy saving
    • Create energy service companies (ESCO): From regulations, technology, incentives, develop the energy-saving industry, encouraging “systematic energy saving” advanced services.
    • Establish an “Energy Technology Service Center”: Assist industries in deep energy saving guidance, auditing, and compliance.
    • Expand Energy Management Information Systems (EMIS) deployment: Complete energy-saving performance hardware and software, align with international energy efficiency standards.
    • Expand “Green Finance” and “Credit Guarantee Fund” programs: Guide capital investment into energy service companie and projects.
    • Align with international energy efficiency standards: Expand industry investment in energy-saving equipment, technology tax deductions, expand subsidies for replacing old energy-consuming household appliances.
    • Expand “Energy-Saving Welfare”: Provide services including energy health checks, subsidized high-efficiency home appliance rentals, energy-saving equipment rentals to institutions or socioeconomically disadvantaged households.
  • Technological energy storage
    • Research and application of energy storage technology: Review regulations to facilitate the installation of energy storage facilities and the development of related industries.
    • Expand private energy storage service capacity: Through power trading platforms, expand procurement of private energy storage services, encourage businesses and communities to develop energy storage facilities.
  • Strong and resilient power grid
    • Smart power grid: Develop a smart power grid with energy storage facilities at the power generation and grid sides, reduce risks and improve resilience through distributed grid engineering.
    • Refine diverse energy storage dispatch models: Through investment and development of diverse energy storage equipment and refined dispatch methods, increase power supply stability and flexibility, improve power quality, create a more conducive development environment for high-tech industries.
  • 2026-2050 Power decarbonization
• Strategy 2: Digital and green dual-axis industrial transformation (low carbon transformation, green manufacturing, circular economy; financial support, technology-driven, carbon pricing/market mechanism)
  • Smart and net-zero technology dual-axis drive
    • Establish a “Net-Zero Innovation Technology Platform”: Layout cutting-edge net-zero technology and innovative industry linkages.
    • Construct “Smart Energy”: Make energy storage, transmission, and use more intelligent through digital technology.
    • Promote green manufacturing: Promote industry low-carbon, carbon-free transformation with design concepts reducing energy consumption and carbon emissions.
    • Expand the circular economy: Encourage resource recycling and reuse, establish a circular economy ecosystem, making every industry a circular economy industry.
  • Green finance as a force for net-zero transformation
    • Establish local green finance: Through green finance, the government assists in risk reduction, guiding capital to climate change response projects and programs.
    • Optimize carbon emission information: Optimize corporate economic activities and ESG information platforms, fully disclose carbon emission information.
    • Strengthen sustainable financial services: Plan sustainable finance certification and talent training, conduct sustainable finance business evaluations.
  • Carbon pricing/market mechanism
    • Carbon emissions have a price, accelerating transformation: Aligning with international trends, Taiwan officially enters the era of priced carbon emissions from 2024, accelerating industrial low-carbon transformation.
    • Carbon fee pilot, diverse carbon reduction: Initially levying tax on 512 major emitters, already accounting for 70% of national carbon emissions.
      • Through preferential rates, reduction quotas, and other diverse tools, encourage actual carbon reduction and, based on implementation effectiveness, establish a comprehensive long-term carbon pricing mechanism.
    • Align internationally, minimize impact: Actively negotiate with trade partners like the EU, use collected carbon fees to offset “Carbon Border Adjustment Mechanism” carbon emission differences, and reduce the impact on manufacturers.
    • Carbon trading, international standards: Encourage deep, large voluntary reductions, sound carbon credit supply and demand market; with international standard professional certification, ensure high-quality carbon credits.
• Strategy 3: Shape a net-zero sustainable green lifestyle
  • Zero-waste low-carbon diet: Promote zero-waste catering services, locally produced low-carbon cultivation agricultural products
  • Environmentally friendly green fashion: Promote environmentally friendly clothing and daily necessities, recycling and reuse
  • Healthy energy-saving green buildings: Promote energy-saving green buildings, building materials, and carbon-reducing building operations
  • Low-carbon transportation network: Promote public transportation, complete walking and cycling environments, vehicle electrification, and decarbonization
  • Service replaces purchase: Expand environmentally friendly products, extend product life, replace purchase with service
  • National dialogue and communication: Open information, strengthen communication, build consensus, establish goals
  • Climate change mutual assistance alliance: Many of Taiwan's allies are islands with high climate risks. We should form a mutual assistance alliance, expressing Taiwan's commitment and determination to respond to climate change
• Strategy 4: The government as the strongest and most effective supporter of net-zero transformation
  • Establish an international advisory group: Stay abreast of the latest international net-zero transformation and carbon pricing mechanism trends, formulate response strategies, and assist industries in low-carbon transformation while minimizing impact.
  • Establish industry technical service teams: Expand guidance for businesses to conduct carbon audits, provide comprehensive consultation and services for carbon pricing and net-zero technologies across various fields.
  • Regularly publish action guidelines: Regularly publish forward-looking action guidelines for net-zero transformation for different industries and scale businesses.
• Strategy 5: Just transition that leaves no one behind
  • Create a green and shared future: Ensure different individuals, communities, and regions have equal development opportunities during “net-zero transformation,” creating a fair and green shared future.
  • Perfect the “net-zero transformation” dispute resolution mechanism: Through employment, investment, insurance, trust, etc., reduce the uncertainty and impact brought by transformation.
  • Turn climate change into a regional development opportunity: Through regional governance, transform climate change response efforts into regional development momentum.
• Build a net-zero society, move towards sustainable living
  • More competitive industries
  • Government as everyone's support
  • A more resilient Taiwan