The European Union will pilot the Carbon Border Adjustment Mechanism (CBAM) next year (2023), potentially impacting Taiwanese small and medium-sized enterprises (SMEs) along the supply chain. Yesterday (the 16th), Taiwan Today published the results of a survey on SME carbon reduction, finding that approximately 85% of companies had heard of the CBAM, with over 25% believing it would have a "significant impact" on their companies.
The survey also revealed that nearly 55% of small and medium-sized enterprises (SMEs) have implemented net-zero plans, with "paying attention to information" and "improving energy management and efficiency" being the most common practices. The two main challenges SMEs face in achieving net-zero are "lack of industry resources or guidance" and "lack of relevant in-house expertise."
CBAM will be piloted next year. Small domestic factories have already received a "carbon reduction order" to comply with the Net Zero Initiative.
The European Union plans to begin a pilot program for the Carbon Border Adjustment Mechanism (CBAM) next year, with its official implementation in 2027. In the future, manufacturers will be required to purchase carbon credits or pay a sufficient carbon fee to import their products into the EU, significantly impacting Taiwan's small and medium-sized enterprises. Taiwan Business Weekly recently partnered with the National Federation of Small and Medium Enterprises and China Development Financial Holdings to conduct a survey on carbon reduction issues among Taiwan's small and medium-sized enterprises. Over 10,000 questionnaires were sent out, resulting in 276 valid responses. The results were released at a press conference yesterday (the 16th).
According to the survey, approximately 85.3% of companies have heard of CBAM, with 26.66% believing it has had a "significant impact" on their companies. With the system about to be piloted, its impact is already being seen. According to a report by This Week, Xincheng, a small Taiwanese wire manufacturer, has been receiving "carbon reduction orders" from international clients since June of this year, requiring them to comply with Net Zero.
Over 50% of SMEs have net-zero plans, but they admit they lack resources, guidance, and talent.
What are the net zero plans of Taiwanese companies? A survey shows that 40% of companies do not yet have a net zero plan. For the remaining 54.6% of companies that do have a net zero plan, the main reasons for planning are "government or industry regulations" and "upstream and downstream supply chain or customer requirements." Over 40% of these companies are implementing the transformation due to "self-awareness." However, net zero remains challenging for small and medium-sized enterprises. The survey shows that the two main challenges facing these companies are "lack of industry resources or guidance" and "lack of relevant professional talent within the company."
What actions are businesses taking towards net zero? According to the survey, nearly 40% of businesses indicated they haven't yet taken any net zero-related actions. The most common action companies are taking is "paying attention to information," followed by "improving energy management and efficiency." Many large companies are establishing carbon reduction departments, hiring relevant personnel, or engaging carbon reduction consultants in response to net zero, but less than 15% of small and medium-sized enterprises have adopted these practices.
Source: Environmental Information Center (https://e-info.org.tw/node/235475)
