1. Environmental Protection Administration Government of Republic of China 1 Building A Green Business Model in Asia - Taiwan as A bridge Overview of Environmental Science and Technology Park (ESTP) Project in Taiwan Dr. Chih C. Chao March 2004

2. Environmental Protection Administration Government of Republic of China 2 Contents 1. Introduction: Green Business Opportunities 2. ESTP Project in Taiwan 3. Strength of Taiwan: A Bridge to Asia 4. Incentive and Assistance Programs 5. Green Business Model 6. Summary

3. Environmental Protection Administration Government of Republic of China 3 Introduction - Strategic Position of Taiwan

4. Environmental Protection Administration Government of Republic of China 4 Introduction - Green Business Opportunities in Asia - Asia: an economic activity center - Taiwan: a top performer in economic growth, with successful record of trade and investment in China and Southeast Asia - Circular economy model: a “must” in today’s world, to ensure sustainability and competitiveness - Eco-industrial development: a “must do” in Taiwan, also serving as a bridge to green business in Asia - ESTP (Eco-Park) Project in Taiwan: 10-year, US$ 400 million, initiated by EPA in 2003

5. Environmental Protection Administration Government of Republic of China 5 Introduction - Green Business Opportunities (cont’d) - Cooperative partnership sought: innovative and entrepreneurial companies - Form of cooperation: independent investment, technology transfer, JV etc. - Focal areas: high value-added resource recovery, advanced environmental and energy technologies, eco-industrial business - Opportunities: renewing 2.5 million tonnes of materials annually, generating an annual revenue of US$ 1 billion; establishing a solid operating base in Taiwan with market access to Asia

6. Environmental Protection Administration Government of Republic of China 6 ESTP Project in Taiwan - Origin Project Origin: - in line with world trend on sustainable development - making best effort to resolve urgent environmental issues - searching for ways and means to enhance green competitiveness - meeting current policy requirements:. air bubble management. water pollution fees. safe water supply. resource recovery act. nuclear-free country. zero waste disposal

7. Environmental Protection Administration Government of Republic of China 7 ESTP Project - Objective 10-Year ESTP Project embarked by Taiwan to: - pursue the goal of sustainable development and globalization - develop a circular economy. inviting innovative and entrepreneurial eco- business worldwide to join. seeking cooperative partnership in: value-added resource recovery, advanced environmental technology and eco-industry

8. Environmental Protection Administration Government of Republic of China 8 ESTP Project - Objective (cont’d) 10-Year ESTP Project embarked by Taiwan to: - realize an opportunity of an exemplary green business model by:. pulling relevant expertise and capitals together on an international scale. building a base in Taiwan while accessing the Asia market with a strong local support

9. Environmental Protection Administration Government of Republic of China 9 Features of ESTPs - Layout Overall Layout: - consisting of :. mass production area. R & D area. support facility area. management center. education and exhibition center Eco-Engineering: - facility designed to ensure eco-friendly environment - park planned to ensure synergistic industrial clustering effect

10. Environmental Protection Administration Government of Republic of China 10 Features of ESTPs - Uniqueness Materials to be renewed/recycled - expected to amount to 2.5 million tonnes per year - providing a sound base for eco-industry operation Ushering in cutting-edge environmental technologies Allowing international enterprises to : - establish a strong base in ESTPs - use Taiwan’s strong and influential economic link - further expand business to Asia region

11. Environmental Protection Administration Government of Republic of China 11 Features of ESTPs - Framework Environmental Protection Administration (EPA) - - Mapping out master plans - - Providing incentives Environmental Protection Administration (EPA) - - Mapping out master plans - - Providing incentives County Government - - Providing land - - Constructing ESTP infrastructure - - Marketing & promotion County Government - - Providing land - - Constructing ESTP infrastructure - - Marketing & promotion Environmental Science and Technology Park Authorized by EPA of ROC on 2003/03/11 #0920017748 - Usher in expertise and capitals - Develop new markets - High-value products - - Advanced technologies - - Zero/little emission Components in ESTP - Mass Production - Research and Development - Support Facilities Components in ESTP - Mass Production - Research and Development - Support Facilities - - Balancing production, life and ecology - - Transforming into new cities and towns Secondary (Wastes) Resources Old cities and towns

12. Environmental Protection Administration Government of Republic of China 12 Kaohsiung and Hualien ESTPs ◎ ◎ Location: Gangshan Benjhou Industrial Park, Kaohsiung County ◎ ◎ Area: 40.11 ha ◎ ◎ Condition of Site: Developed ◎ ◎ Status of ESTP: Started investor application and review process in July 2003 ◎ ◎ Location: Fengling Industrial Park, Hualien County ◎ ◎ Area: 22.01 ha ◎ ◎ Condition of Site:Under development ◎ ◎ Status of ESTP: Scheduled to start construction in June 2004 Hualien Kaohsiung ESTP (Eco-Park) Locations

13. Environmental Protection Administration Government of Republic of China 13  Located in a developed industrial park equipped with sound infrastructure and utility service  Situated within a strategic industrial zone with high concentration of metal (steel), petrochemical, electronic etc. industries  Intending to develop an eco-industrial complex serving above industries Kaohsiung ESTP

14. Environmental Protection Administration Government of Republic of China 14  Industrial park under development  Area known for mineral (graphite, cement, etc.) and agricultural industries  Intending to develop a resource recovery circle and a life science center with focus on renewable resources and energy and bio-agricultural industry 。 ESTP Hualien ESTP

15. Environmental Protection Administration Government of Republic of China 15 Strength of Taiwan - Statistics  Area : 36,000 km 2  Population ︰ 23 million  Major Economic Indexes ︰

16. Environmental Protection Administration Government of Republic of China 16 Strength of Taiwan Ideal for Cooperative Investment and Trade - government quick to remove investment barriers and create freer market - abundant capitals available while Taiwan ranks among top three in foreign reserves - high competitiveness backed by strong economy and high-tech competence - open domestic monetary market policy making capital and funding arrangement much easier for foreign business to operate internationally

17. Environmental Protection Administration Government of Republic of China 17 Strength of Taiwan (cont’d) Strategic Location - an operational hub in Asia-Pacific Region. well-developed infrastructure. convenient transportation system. fully functional ports and harbors. free-flow customs system - an ideal base to access market in Asia. overwhelming business network tapping into surrounding market

18. Environmental Protection Administration Government of Republic of China 18 Strength of Taiwan (cont’d) Credible Business Experience in Asia - one of the largest foreign investors in China and many Southeast Asia countries. familiar with local culture & business conducts. proficient in managing local business networks. technically competent and financially healthy. enjoying handsome surplus in trading and investment - an ideal partner to do business in Asia. pro-active, understanding, and flexible

19. Environmental Protection Administration Government of Republic of China 19 Strength of Taiwan (cont’d) High Quality Human Resources - wide range of skilled human power with potential for global outreach - rich brain power making local enterprises fully competitive and in pace with international trend and development

20. Environmental Protection Administration Government of Republic of China 20 Incentive and Assistance Programs Incentive Programs General: various tax breaks and exemptions provided for investments in Taiwan ESTP subsidies: Land leasing: 50% of cost up to 2011 Production expenditure: 10% of capital and production costs R & D expenditures: one-year project ; renewable for second year, if necessary Research project: Maximum – US$ 150,000 per case Number of subsidized projects – 10 cases/year Pilot production: Maximum - US$ 300,000 per case Number of subsidized projects – 5 cases/year

21. Environmental Protection Administration Government of Republic of China 21 Incentive and Assistance Programs (cont’d) Assistance Programs - providing assistance service on :. marketing and sales. securing of raw materials. setting product standards and specifications. preferential procurement of green products - one-stop administrative service on :. permit and license applications

22. Environmental Protection Administration Government of Republic of China 22 Green Business Model Proven Development Experience - inherited successful experiences in establishing traditional and high-tech industries in Taiwan. example: Hsinchu Science-Based Industrial Park. turning advanced technology into lucrative business - realizing lucrative green business through ESTPs. drawing international cooperation experience and effective business mode as above. ensuring “win-win” collaboration among partners

23. Environmental Protection Administration Government of Republic of China 23 Green Business Model (cont’d) Green Industry Development - green technology is needed to manage emerging environmental issues, leading to growth of green industry - focus of green industry:. cleaner production. resource recovery. renewable energy. strategic environmental technology. wastewater recycling. soil remediation. waste separation and regeneration

24. Environmental Protection Administration Government of Republic of China 24 Green Business Model (cont’d) Best Opportunity to Realize Green Industry - joining ESTPs in various forms. independent investment. technology transfer. joint venture with Taiwan partners - building a base in Taiwan for Asia operation. capitalizing Taiwan’s strength in human power, technical, marketing and financial aspects. bringing in expertise and other resources to realize high value-added eco-business

25. Environmental Protection Administration Government of Republic of China 25 Summary Tremendous Potential and Advantages - Taiwan: best partner for development of green business in Asia. rich capital. economic strength. successful experience in international cooperation in Taiwan, China and Southeast Asia. abundance of human resources. drive for globalization

26. Environmental Protection Administration Government of Republic of China 26 Summary (cont’d) High Economic Power Engine - Taiwan Government continuously introducing incentives, removing obstacles and deregulating constraints to encourage investments in Taiwan with access to Asia - local economy reviving with increasing foreign investments - all-out effort in implementing Eight New Industries - determined to set up an exemplary green business model

27. Environmental Protection Administration Government of Republic of China 27 Summary (cont’d) Best Timing for Cooperative Partnership - joining ESTPs. offering advanced environmental technology. creating a green economic miracle together - sustainable growth promised for. innovative and entrepreneurial eco-business

28. Environmental Protection Administration Government of Republic of China 28 Websites  Ministry of Economic Affairs, ROC www.moea.gov.tw  Industrial Development & Investment Center, Ministry of Economic Affairs, ROC www.idic.gov.tw  Environmental Protection Administration, ROC www.epa.gov.tw

29. Environmental Protection Administration Government of Republic of China 29 Websites  Enviromental Science and Technology Park www.epa.gov.tw  Kaohsiung County Government www.kscg.gov.tw  Hualien County Government www.hl.gov.tw

30. Environmental Protection Administration Government of Republic of China 30 Contacts Industrial Technology Research Institute Dr. Chih C. Chao, Fellow and Senior Advisor E-mail: ccchao@itri.org.tw Tel: 886-3-5916309 Fax: 886-3-5916310 Environmental Protection Administration Mr. Yein Rui Hsieh, Senior Specialist E-mail: yrhsieh@sun.epa.gov.tw Tel: 886-2-2311-7722 ext. 2606 Fax: 886-2-2331-7741