A wave of environmental protests in Taiwan, sometimes pitting demonstrators against police, has pushed the government to speed up new green rules to protect the environment without harming economic growth.
Economists say the stricter rules will ultimately raise the competitiveness of the US$416 billion economy against greener Asian rivals and boost its corporate image among eco-conscious Western consumers.
“People realize the short-term interests from economic development, but worry long term about environmental protection, so we need to attain a balance,” Taiwan Environmental Protection Administration Minister Stephen Shen (沈世宏) said.
Taiwan industrialized in the 1980s with little public protest to become one of Asia’s four economic dragons. Now, it is working on more transparent environmental reviews for new projects and tougher energy laws, including a tax regime and carbon reduction targets for 2020, 2025 and possibly 2050.
Officials also want to phase out traditional polluting industries and join international carbon trading schemes.
Government action follows a spate of protests, including an 8,000-strong rally on Nov. 13 denouncing a planned 300,000 barrels-per-day oil refinery complex on Taiwan’s west coast that could foul the air and hurt local dolphins.
Earlier outcries had already extended an environmental impact review of the US$36 billion Kuokuang Petrochemical Technology Co (國光石化科技) refinery project led by CPC Corp, Taiwan (台灣中油).
“The government hasn’t told citizens why we absolutely need this plant,” said Kan Chen-yi (甘宸宜), secretary of a conservation group behind the protest. “It could spread pollution all over Taiwan, hurt dolphins and pollute the water.”
Three fires in six months earlier in the year at a giant refinery run by Formosa Petrochemicals Corp (台塑石化) led to calls for its closure. Some protests sparked clashes with police.
In another case, farmers and environmentalists filed a lawsuit to block expansion of a science park in central Taiwan. The park was asked to reevaluate the environmental impacts and resubmit plans, the Government -Information Office said.
The new measures will oblige the densely populated Taiwan’s high-tech, petrochemical and textile companies to invest in upgrading factories.
However, officials also hope for a latent dividend — boosted corporate images and reduced energy bills.
“In the short term, in terms of costs, companies may look at the laws unfavorably, but these measures will be looked at very favorably by consumers in the United States,” said Liu Li-gang (劉利剛), head of China economic research with ANZ in Hong Kong.
Stronger environmental laws are also expected to induce new investment as local startups or foreign firms want to see specifics on rules before making a -commitment. Taiwan has long been criticized for murky or cumbersome business procedures.
The president of the US Chamber of Commerce says the 900-member body has questioned the transparency of Taiwan’s environmental impact assessment methods.
“Firms don’t want to put money into a plant and then find themselves responding to unclear or inconsistently applied rules,” said Mark Williams, senior China economist with Capital Economics in London.
Taiwan is concerned about its competition.
South Korea, heavily reliant on exports, has proposed legislation to launch a carbon emissions trading scheme this year, while Japan aims to pass a climate bill setting rigorous emissions targets.
Many Taiwanese companies are not waiting to be told.
They have cut emissions or recycled wastewater on their own, industry associations say, and expect to do more over the next five years.
The world’s biggest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), says it voluntarily cut perfluorocarbon emissions, a major greenhouse gas often used in medical applications, in 2001 and slashed its carbon emissions output in 2005.
“We have seen that consumers increasingly want to buy green products,” TSMC’s top publicist, Michael Kramer, said in a statement. “And naturally, conserving electricity and water as well as recycling materials reduces our costs.”
DECOUPLING? In a sign of deeper US-China technology decoupling, Apple has held initial talks about using Baidu’s generative AI technology in its iPhones, the Wall Street Journal said China has introduced guidelines to phase out US microprocessors from Intel Corp and Advanced Micro Devices Inc (AMD) from government PCs and servers, the Financial Times reported yesterday. The procurement guidance also seeks to sideline Microsoft Corp’s Windows operating system and foreign-made database software in favor of domestic options, the report said. Chinese officials have begun following the guidelines, which were unveiled in December last year, the report said. They order government agencies above the township level to include criteria requiring “safe and reliable” processors and operating systems when making purchases, the newspaper said. The US has been aiming to boost domestic semiconductor
Nvidia Corp earned its US$2.2 trillion market cap by producing artificial intelligence (AI) chips that have become the lifeblood powering the new era of generative AI developers from start-ups to Microsoft Corp, OpenAI and Google parent Alphabet Inc. Almost as important to its hardware is the company’s nearly 20 years’ worth of computer code, which helps make competition with the company nearly impossible. More than 4 million global developers rely on Nvidia’s CUDA software platform to build AI and other apps. Now a coalition of tech companies that includes Qualcomm Inc, Google and Intel Corp plans to loosen Nvidia’s chokehold by going
ENERGY IMPACT: The electricity rate hike is expected to add about NT$4 billion to TSMC’s electricity bill a year and cut its annual earnings per share by about NT$0.154 Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has left its long-term gross margin target unchanged despite the government deciding on Friday to raise electricity rates. One of the heaviest power consuming manufacturers in Taiwan, TSMC said it always respects the government’s energy policy and would continue to operate its fabs by making efforts in energy conservation. The chipmaker said it has left a long-term goal of more than 53 percent in gross margin unchanged. The Ministry of Economic Affairs concluded a power rate evaluation meeting on Friday, announcing electricity tariffs would go up by 11 percent on average to about NT$3.4518 per kilowatt-hour (kWh)
OPENING ADDRESS: The CEO is to give a speech on the future of high-performance computing and artificial intelligence at the trade show’s opening on June 3, TAITRA said Advanced Micro Devices Inc (AMD) chairperson and chief executive officer Lisa Su (蘇姿丰) is to deliver the opening keynote speech at Computex Taipei this year, the event’s organizer said in a statement yesterday. Su is to give a speech on the future of high-performance computing (HPC) in the artificial intelligence (AI) era to open Computex, one of the world’s largest computer and technology trade events, at 9:30am on June 3, the Taiwan External Trade Development Council (TAITRA) said. Su is to explore how AMD and the company’s strategic technology partners are pushing the limits of AI and HPC, from data centers to