In line with the global push toward net-zero carbon emissions to combat climate change, Taiwan pledged in 2021 to achieve net-zero status by 2050. The government followed up in 2022 by issuing 12 key strategies for the transition to net zero, including one strategy to proactively expand energy saving efforts—encouraging companies to invest in low-carbon processes, and facilitating industry and lifestyle transformations. Over the past five years, Taiwan has striven to advance energy transition, energy conservation and improved manufacturing processes. Taiwan's average annual rate of energy efficiency improvement has reached 5.1%, thus upholding the 28th United Nations Climate Change Conference's (COP28) pledge of exceeding 4% each year until 2030. Since 2024, the government has also launched a second energy transition initiative, developing a diverse range of green energy sources and implementing a program to promote deep energy saving (2024-2027) to continue upgrading energy use efficiency.
Three main measures
■ For large energy users: Through regulatory requirements, raise the annual energy-saving target from 1% to 1.5% for large energy users that reserve a capacity of 10,000 kilowatts (kW) or more. Foster collaboration between large manufacturers and smaller firms along the supply chain to improve energy-saving processes. Offer tax incentives for investing in energy saving, thus encouraging lower energy consumption.
■ For medium and small energy users: Help energy service companies (ESCOs) provide businesses with specialized assistance in implementing suitable cost-effective means to save electricity and reduce carbon emissions. Expand ESCO service capacity by injecting funds from financial institutions, backed by a government credit guarantee program for ESCO industry loans.
■ For residential energy users: Continue to promote a subsidy program that encourages people to replace old home appliances by purchasing new ones that meet Taiwan's highest energy efficiency labeling standards.