The EU's implementation of the CBAM carbon tariff may impact the export competitiveness of Taiwan's small and medium-sized enterprises. Foreign brands are increasingly demanding energy conservation and carbon reduction from their supply chains. Connecting upstream and downstream processes to achieve net-zero transformation is an urgent international trend. To help Taiwanese small and medium-sized business owners, senior managers, and second-generation successors smoothly align with international net-zero emissions targets, the Ministry of Economic Affairs' Small, Medium, and Startup Administration has developed comprehensive counseling and diagnostic resources, offering practical courses and related training activities to accumulate business transformation capacity and enhance competitive advantage. Carbon reduction measures are also being developed based on business needs:
Phase One: Cultivate awareness of carbon knowledge and reduction through workshops, including practical courses such as carbon inventory, carbon neutrality and visits to benchmark companies.
Phase Two: Professional consultants will provide on-site guidance to analyze the current situation and diagnose hot spots, and provide carbon reduction recommendations and benefit evaluation projects for the entire factory.
Phase III: Providing diagnostic and counseling programs to guide small and medium-sized enterprises in introducing low-carbon and intelligent solutions, and assisting in planning digital and sustainable dual transformation paths.
To encourage businesses to move toward net zero and confidently invest in carbon reduction efforts, the Ministry of Economic Affairs has established subsidy programs for various categories, including upgrading and transformation, innovative R&D, and financing (interest subsidies and loans), as shown in the figure below. In the upgrading and transformation sector, the Small, Medium and Startup Administration's "Low-Carbon and Smart Upgrading and Transformation Subsidy for Small and Medium-sized Manufacturing Industries (Regularly Employing 9 or Less)" and the Industrial Development Agency's "Low-Carbon and Smart Upgrading and Transformation Case Subsidy for Small and Medium-sized Manufacturing Industries (Regularly Employing 10 or More Employees)" provide subsidies to individual manufacturing industries with fewer than 9 employees and those with more than 10 employees, respectively, to implement relevant technologies, equipment, and management mechanisms for their transition toward low-carbon and smart transformation. Furthermore, the Industrial Development Agency's "Large-Scale Manufacturing Industry Low-Carbon and Smart Upgrading and Transformation Subsidy" primarily supports manufacturing industries using a "large-scale-small-scale" approach, whereby central plants (regularly employing 10 or more employees) drive supply chain partners to accelerate the adoption of low-carbon and smart technologies, thereby enhancing Taiwan's industrial competitiveness and economic resilience. In the field of innovation and R&D, the SME Administration hopes to drive innovation and R&D activities of domestic small and medium-sized enterprises through the "Small Business Innovation and R&D Program (SBIR) Thematic Alliance Program", assist them in knowledge layout and cultivating R&D talents, and use R&D results to support the industrial system and promote Taiwan's economic development.
The Industrial Development Agency has launched the "Industrial Upgrading Innovation Platform Counseling Program (TIIP)" to encourage businesses to engage in technological innovation and related applied research, or to develop technologically advanced applications and services. By establishing innovative industrial operating models, it helps build Taiwan's innovation ecosystem, promote industrial upgrading, enhance industrial added value, and connect with international markets. Furthermore, regarding recycling, remanufacturing, and zero waste, the Ministry of Economic Affairs' Small, Medium, and Startup Administration (SMEA) also provides professional coaching teams to assist in the development of innovative circular economy technologies, green design, operating service models, and product development. They also offer consulting and other support services to enhance the recycling capabilities of SMEs and connect them to international markets. Through these coaching resources, Taiwan's SMEs can establish overseas distribution channels early, thereby expanding into international markets and enhancing and strengthening their industrial competitiveness and economic resilience.
| Subsidy |
| NO. | category | Department | Subsidy Program | Application Timeline | Service Hotline | Short URL |
| 1 | Upgrading and transformation | Small, Medium and Start-up Enterprises Agency | Subsidies for low-carbon and smart upgrading and transformation of small and medium-sized manufacturing industries (regularly employing fewer than 9 employees) | From the date of acceptance of the announcement to the date when the subsidy funds are exhausted | 0800-888-968 | https://userapply.uat.org.tw/ |
| 2 | Industrial Development Agency | Subsidy for small and medium-sized manufacturing industries to upgrade to low carbon and intelligent transformation | From the date of acceptance of the announcement to the date when the subsidy funds are exhausted | (02)2704-4844 | https://reurl.cc/N47KWm |
| 3 | Subsidy for small and medium-sized manufacturing enterprises (regularly employing more than 10 employees) to upgrade to low-carbon and intelligent transformation | From December 18, 2013 until the end of the subsidy period | (02)2709-0638 #211、212 | https://reurl.cc/mrmKgV |
| 4 | Innovation and R&D | Small, Medium and Start-up Enterprises Agency | Small Business Innovation and Research Program (SBIR) Themed Alliance Program | March 1, 2014 to March 31, 2014 | 0800-888-968 | https://www.sbir.org.tw/ |
| 5 | Industrial Development Agency | Industry Upgrading Innovation Platform Counseling Program (TIIP) | Subject to announcement of different plan types | 02-2704-4844 | https://tiip.itnet.org.tw/ |
| 6 | Financing | Small, Medium and Start-up Enterprises Agency | Action Plan for Accelerating Investment for Small and Medium Enterprises | From July 1, 2019 to December 31, 2020 | (02)2559-7171 #3156 | https://ssur.cc/NJ4e4ggs |
| 7 | Main preferential safeguards applicable to ESG | Subject to the announcement of different project themes | 0800-089-921 | https://reurl.cc/EGDYng |
| 8 | National Development Preferential Guarantee Measures for Small and Medium Enterprises Credit Guarantee Fund | November 14, 2013 to December 31, 2015 | (02)2321-4261 #385 | https://reurl.cc/M4lKpm |
| 9 | Post-epidemic Revitalization Project Loan | As of October 31, 2015 | 0800-056-476 | https://reurl.cc/97KmjX |
| 10 | Low-carbon smart transformation Tedenna pipe factory loan | As of October 31, 2015 | 0800-056-476 | https://reurl.cc/97KmjX |
| 11 | other | Industrial Development Agency | Ministry of Economic Affairs increases subsidies for electric locomotive industry | December 11, 2012 to December 31, 2016 | 0800-527-027 | https://reurl.cc/prkezr |
To promote the application of energy-saving products and technologies, and disseminate knowledge about carbon reduction, the Ministry of Economic Affairs offers a wealth of online learning resources, in-person training courses, and various event information. For example, the Industrial Development Agency's "Recharging Human Resources Training Program" focuses on on-the-job training in low-carbon and smart manufacturing. This program aims to enhance the professional competencies of manufacturing employees and stabilize employment, while also helping businesses retain key talent and strengthen operational resilience to support the upgrading and transformation of industries and SMEs. Similarly, the Small, Medium, and Startup Administration integrates virtual and in-person learning resources through its "SME Online University" platform, providing one-stop corporate learning services and a variety of learning formats, including themed classes, workshops, and forums. This program aims to enhance the knowledge and skills needed by entrepreneurs, aspiring entrepreneurs, senior leaders, and successors, as well as fostering corporate talent development.
The "Small and Medium Enterprise Green Environmental Protection Information Network" operates through three key themes: new thinking, new technologies, and new business opportunities. It helps Taiwanese SMEs master the application of recycled resources, improve the quality of circular economy products, and innovate service models. It also connects Taiwanese SMEs with international brands and creates opportunities to enter the supply chain, successfully integrating with and entering the international market, and expanding circular economy business opportunities and output value. Online learning resources, such as the Energy Agency's "Energy Saving Benchmark Network," focus on demonstrations and energy-saving technology exchanges to disseminate energy-saving results, driving comprehensive energy conservation and net-zero transformation efforts across all sectors. The Industrial Development Agency's "Industrial Energy Saving and Carbon Reduction Information Network" actively promotes voluntary industry reductions, energy management system information, and climate change adaptation zones. It also provides guidance on promoting low-carbon production, as well as product environmental footprint and resource sustainability.
| course |
| NO. | category | Department | Resource Platform | Application Timeline | Service Hotline | Short URL |
| 1 | course | Industrial Development Agency | Human Resources Recharge Program | Implementation throughout the year | (02)2701-6565 | https://reurl.cc/nD66gl |
| 2 | course | Small, Medium and Start-up Enterprises Agency | Small and Medium Enterprise Online University | Implementation throughout the year | 0809-091-011
(02)7742-0595 | https://reurl.cc/pLb94e |
| 3 | course
Briefing
Enterprise Visit
forum
seminar | Small, Medium and Start-up Enterprises Agency | SME Green Environmental Protection Information Network | Implementation throughout the year | (04)2359-5900 #301 | https://green.pidc.org.tw/plan.php?lang=tw |
| 4 | Briefing
Enterprise Visit
forum
seminar | Energy Agency | Energy Saving Benchmark Network | The Department of Commerce announces the acceptance period each year. | (03)591-7059 | https://reurl.cc/7k99xN |
| 5 | Briefing
Enterprise Visit
forum
seminar | Industrial Development Agency | Industrial Energy Conservation and Carbon Reduction Information Network | Implementation throughout the year | (04)2350-8042 #209 | https://ghg.tgpf.org.tw/ |
By Zhang Xiayun, Specialist, Quality, Environment and Safety Department, Plastics Industry Technology Development Center
