Advocating green industries, Taiwan endeavors to reduce Green House Gas (GHG) emission (13 th WEF Meeting) Joseph Fu-Hsiong Cheng Vice Chairman of TEEMA November 5, 2007

1 Contents 1.Background 2.Green House Gas (GHG) reduction measures in Taiwan 3.Status quo and goals of Taiwan’s E&E industry 4.Conclusion

2 1.Background Background concepts and mission statement of “ Green APEC Opportunity Initiative ” In view of the negative impacts brought about by global warming and diminishing natural resources, Taiwan has proposed the “Green APEC Opportunity Initiative”, that aims to create more room for development and mutual prosperity among APEC members through the APEC ECOTECH framework. Mission statement: Establish a communal platform for discussions focused on clean development and climate change issues, benefiting member economies by enhancing technology development, policy innovation and education plans through cooperation and exchange of information.

3 Green APEC Opportunity Initiative Green APEC Virtual Platform Seek appropriate green development opportunities for members in different stages of development. Areas of discussion include clean production, green consumption, green industry, nature conservation, prevention of public hazards, etc. “Green APEC” seminars “Green APEC Clean Development” exhibition “Technology Innovation and Education” information network platform Based on the success of the above activities Proposed name Mission statement Approach Targets Proposed benefit APEC sustained development 1. A communal platform gives all member economies a channel to cooperate in the context of clean development and climate change. It further embodies the ECOTECH spirit that APEC values and helps build community awareness. 2.Seminars discussing technology and policy related issues can be held under this framework. 3.Exhibitions focusing on technology transfer, trade and investment can be held under this framework. 4. The clean development and climate change policies, technologies and education issues of each member economy can be filed under the information network platform, in turn creating “Green Opportunities” on the web. Framework and targets 1. Background

4 2. Green House Gas (GHG) reduction measures in Taiwan Ongoing industry examinations, investigations and registrations Active promotion of voluntary reduction within industries Active promotion Taiwan industies Performance expected Reduction of CO 2 emission equivalence (T ） voluntary reduction agreement between industries and Ministry of Economic Affairs 1.Optoelectronics 2.Semiconductor 24M (2006 ~ 2010) 1.Steel & iron 2.Petrochemical 3.Man made fiber 4.Cement 5.Paper 6.Textile printing/dyeing/finishing 4M (2004 ~ 2008)

5 Researching industry development and Green House Gas (GHG) management policies Taiwan’s manufacturing industry will steadily shift towards heightened integration, innovation, globalization and environment shaping. The government has already developed a suitable and feasible long term GHG reduction policy: 1. Realignment of energy intensive industries 2. Industry upgrades and transformations Establish Taiwan Industrial Greenhouse Office (TIGO) under Ministry of Economic Affairs (MOEA) 2. Green House Gas (GHG) reduction measures in Taiwan

6 3. Status quo and goals of Taiwan ’ s E&E industry The semiconductor and optoelectronic industry have agreed to take active roles in the government’s GHG reduction plan for 2007 One of the most effective ways to achieve substantial reduction is to encourage GHG emission sources to participate in voluntary reduction plans The voluntary reduction agreement year Total emissions before reduction Target total emissions Reduction effect 2006~2010 （ tons of CO 2 emission equivalence ） 82 million58 million24 million

7 Current state of energy efficient labeling for household appliances Energy efficient labeling is a voluntary certification promoted by the Bureau of Energy, Ministry of Economics Affairs. The label certifies high energy efficient products, and is meant to encourage manufacturers to design and produce said products. Consumers are also encouraged to purchase high energy efficient merchandise. Energy efficient labeling first began with common household appliances such as air-conditioners and refrigerators. As of August ’07, the energy efficient label was awarded to 78 brands, 1188 products and enlarged to include 18 product categories. Newly increased reductions for Q1&Q2 ’07 is equivalent to about 36K tons in CO 2 emission. 3. Status quo and goals of Taiwan ’ s E&E industry

8 Products Effective product labels Fluorescence tubes212 Air-conditioners206 Chilled-warm-hot water fountain machines 150 refrigerators136 dehumidifiers111 gas stoves88 Electric fans79 Current state of energy efficient labeling for household appliances Manufacturers and products certified by the energy efficient label 3. Status quo and goals of Taiwan ’ s E&E industry Products Effective product labels Warm-hot water dispensers56 Instantanous gas water heaters51 Clothes washers45 Fluorescent Lamps with embedded ballasts 30 TVs9 Hair dryers1 Others-

9 Product Total energy conserved (kWh) CO 2 emission equivalence (ton) Air-conditioners 31,852,51221,350 refrigerators 34,224,78622,529 dehumidifiers 15,381,24210,266 TVs (’06 data not available) 70,06547 Clothes washers 1,079, Electric fans 1,142, Fluorescence tubes 53,686,52436,107 Warm-hot water dispensers 1,022, Chilled-warm-hot water fountain machines 4,432,6982,931 Fluorescent Lamps with embedded ballasts( '06 onwards) 230, Total 143,122,64695,513 Remarks: Statistical data is based on data available from Industrial Technology Research Institute of Taiwan (ITRI) Reduction effect of energy efficient labeling for household appliances （ 2005~2007 Q2 ） 3. Status quo and goals of Taiwan ’ s E&E industry

10 Strategies and goals for developing energy conservation plans and new substitute energies Green energy industries Enhance eco-friendly awareness in domestic industries; sync with the world; roll out active promotions for key industries; increase green investments by Taiwan enterprises Market value of green energy industries in Taiwan 3. Status quo and goals of Taiwan ’ s E&E industry year *Estimates by Council for Economic Planning & Development Market value66.4 billion92.96 billion152.4 billion Growth rate (compared with 2005) 40%230%

11 3. Status quo and goals of Taiwan ’ s E&E industry Strategies and goals for developing energy conservation plans and new substitute energies Developments in renewable energy

12 Strategies and goals for developing energy conservation plans and new substitute energies Energy conservation in the LCD industry 3. Status quo and goals of Taiwan ’ s E&E industry

13 Energy conservation of the LED industry in Taiwan 3. Status quo and goals of Taiwan ’ s E&E industry Strategies and goals for developing energy conservation plans and new substitute energies Performance Energy conservation (kWh) Equivalent to CO 2 emission reduction (Ton) 350k sets traffic lights already replaced by LED 130 M M Applied to general lighting in future 10,700 M6.83 million Note: assuming a Lumen efficiency of 120Lm/W, lifetime 30k hours.

14 year Notebook PC by Taiwan Mfgrs annual sales volume (M sets) *Notebook PC replacing desk top relative energy conserved (kWh) Relative CO 2 reduction (Ton) ,020M13.4M ,380M18.1M 2008(e) ,000M21.0M Source ： Market Intelligence Center of Institute of Information Industry. *Note ： 1.Aggregate notebook usage estimated at 4hrs/day for 5 yrs(220 workdays) 2.Tests done by Energy and Environment Research Laboratories of Industrial Technology Research Institute (ITRI) showed that traditional desktops consumed on average 120W, whereas notebooks consumed an average of 45W. The difference of 75W could mean a 62.5% energy reduction. 3. Converting rate: 1kWh ＝ kg CO 2 3. Status quo and goals of Taiwan ’ s E&E industry Strategies and goals for developing energy conservation plans and new substitute energies Energy conservation in the Notebook PC industry

15 Strategies and goals for developing energy conservation plans and new substitute energies Energy conservation in the Solar Cells Industry 3. Status quo and goals of Taiwan ’ s E&E industry

16 4. Conclusion TEEMA’s efforts in increasing awareness of the latest EU WEEE/RoHS/EuP discussions in Taiwan Maintaining our competitive IT advantage while promoting clean production and industrial security risk central-satellite systems

17 4. Conclusion Maintaining our competitive IT advantage while promoting clean production and industrial security risk central-satellite systems Ａ． Promotion of clean production 1.Central-satellite systems for clean production 2.Promote social cost accounting practices 3.CER/CSR promotions and eco info C. R&D on strategic technology tools 1.Develop environmental cost evaluation tools for electric products 2.Maintain and update auditing tools for the EU EuP directive 3.R&D of clean production technology D. International exchanges & promotions 1.Organize seminars on clean production & sustainable development 2.Organize seminars on APO green productivity 3.Compile and update the “clean production information network” 4.Promote applications of global eco-friendly technology standards 5.Provide info & consultation regarding international eco-protection standards and directives B. Promotion & counselling of inter- national eco standards Including: Industrial security satellite management system Registration of said system Implementing the HSPM system Meeting the EuP directive Promoting the EuP directive WEEE/RoHS directive tracking/information Congruent with eco standards & green policies international *APO: Asian Productivity Organization

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19 Converting rate: 1 度電 ＝ kg CO2 ＝１ kW/h 用再生能源，而非替代能源 => 不包含核能發電 ISSUE.