Advocating green industries, Taiwan endeavors to reduce Green House

Gas (GHG) emission

(13th WEF Meeting)

Joseph Fu-Hsiong ChengVice Chairman of TEEMA

November 5 , 2007

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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

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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.

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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 benefitAPEC 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

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2. Green House Gas (GHG) reduction measures in Taiwan

Ongoing industry examinations, investigations and registrations

Active promotion of voluntary reduction within industries

Active promotionTaiwan industies

Performance expectedReduction of CO2 emission e

quivalence (T ）

voluntary reduction agreement between industries

and Ministry of Economic Affairs

1. Optoelectronics2. Semiconductor

24M (2006 ~ 2010)

1. Steel & iron2. Petrochemical3. Man made fiber4. Cement5. Paper6. Textile printing/dyeing/finishing

4M (2004 ~ 2008)

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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

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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

yearTotal emissions

before reductionTarget total

emissionsReduction

effect

2006~2010（ tons of CO2 emission

equivalence）82 million 58 million 24 million

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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 CO2 emission.

3. Status quo and goals of Taiwan’s E&E industry

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ProductsEffective

product labels

Fluorescence tubes 212

Air-conditioners 206

Chilled-warm-hot water fountain machines

150

refrigerators 136

dehumidifiers 111

gas stoves 88

Electric fans 79

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

ProductsEffective

product labels

Warm-hot water dispensers 56

Instantanous gas water heaters 51

Clothes washers 45

Fluorescent Lamps with embedded ballasts

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TVs 9

Hair dryers 1

Others -

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Product Total energy conserved

(kWh)

CO2 emission equivalence (ton)

Air-conditioners 31,852,512 21,350

refrigerators 34,224,786 22,529

dehumidifiers 15,381,242 10,266

TVs (’06 data not available) 70,065 47

Clothes washers 1,079,280 720

Electric fans 1,142,336 762

Fluorescence tubes 53,686,524 36,107

Warm-hot water dispensers 1,022,318 654

Chilled-warm-hot water fountain machines 4,432,698 2,931

Fluorescent Lamps with embedded ballasts( '06 onwards)

230,885 147

Total 143,122,646 95,513

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

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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 2005 20062009

*Estimates by Council for Economic Planning &

Development

Market value 66.4 billion 92.96 billion 152.4 billion

Growth rate(compared with 2005)

40% 230%

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Current state and targets of renewable energy development in Taiwan

2004 2010 Promotion results Promotion targets

Timeline

Objectives

Aggregate capacity (10MW)

Ratio(%) Aggregate capacity

(10MW) Ratio(%)

1.Conventional hydro power 191.1 4.27 216.8 4.22

2.Wind power 0.9 0.02 215.9 4.20

3.Solar energy 0.059 0.00 2.1 0.04

4.Thermo-energy - - 5.0 0.10

5.Bio-mass 56.73 1.27 74.1 1.44

Total 248.8 5.56 513.9 10.0

Renewable energy over Total capacity 5.56% 10.0%

Source: Bureau of Energy, Ministry of Economic Affairs, Taiwan

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

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LCD TV

year LCD TV

annual sales volume (k pc)

Relative energy reduction (kwh/year)

2003 407 20,500,590

2004 1771 89,205,270

2005 4250 214,072,500

2006 8974 452,020,380

2007(e) 14013 705,834,810

Woring days：365

Hrs used / day : Standby 20hr；on mode 4hr

Power comsumption: - (on mode) - CRT TV: 173.3 W v.s. LCD TV141.4 W - (Standby ) - CRT TV 0.8W v.s LCD TV 0.28 W

Source： 1. Watt(W)，sampling from 2006.3.16 ITRI actual testing data，CRT TV

model is SONY KVES29N90，LCD TV model is SONY KLV-32； 2. sales volume, Institute for Information Industry and Topology Research

Institute 2007/06。

LCD monitor

year LCD Monitor

annual sales volume (k pc)

Relative energy reduction (kwh/year)

2003 587.4 119,613,640

2004 581.1 118,319,559

2005 632.4 128,778,302

2006 580.4 118,198,194

2007(e) 544.9 110,971,458

Working days：220

Hrs used / day : Standby 16hr；Active 8hr

Power comsumption: - (Active) - CRT monitor 90W v.s. LCD monitor 16.7W - (Standby ) - CRT monitor 26W v.s LCD monitor 4.8 W

Source:

1.Watts，Energy Consumption by Office and Telecommunications Equipment in Commercial Buildings, vol II:Energy Saving Potential,2004.12。

2. sales volume, info-cip。

Note:

a. Due to the huge differences in wattage consumed among TV products, we have chosen the mid-range 29”CRT(equivalent to a 32”LCD) as our base point product.

b. Cases where CRTs consumed less wattage than LCDs were found in our actual testing.

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

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Energy conservation of the LED industry in Taiwan

Investing in white LED technology development

Efficiency of white LED comparing with traditional light source

Product types Energy

conservation (ratio)

White LED(60Lm/W) replacing florescence light source 90%

LED replacing halogen lamps 45%

LED replacing neon lights 65%

LED replacing exit lights (replacing florescence light) 50%

LED replacing freezer light (replacing florescence light) 45%

White LED(60Lm/W) street lighting replacing mercury street light 35%

invested Invested

FY2007-2010 Total

investment Technology R&D (100mm )

13.8 15.3 29.1 Application demos and promos(100mm)

3.8 4.5 8.3

Total (100mm NT$) 17.6 19.8 37.4

Notes: Investments include technology development funds from MOEA and demo programs of LED traffic lights in the Executive Yuan’s 2004 public infrastructure reinforcement plan

3. Status quo and goals of Taiwan’s E&E industry

Strategies and goals for developing energy conservation plans and new substitute energies

PerformanceEnergy

conservation (kWh)

Equivalent to CO2 emission reduction

(Ton)

350k sets traffic lights already

replaced by LED130 M

0.083 M

Applied to general lighting in future

10,700 M 6.83 million

Note: assuming a Lumen efficiency of 120Lm/W, lifetime 30k hours.

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yearNotebook PC by Taiwan Mfgrs annual sales volume (M sets)

*Notebook PC replacing desk toprelative energy conserved (kWh)

Relative CO2

reduction (Ton)

2006 63.7 21,020M 13.4M

2007 86.0 28,380M 18.1M

2008(e) 100.0 33,000M 21.0M

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 ＝ 0.638 kg CO2

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

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Strategies and goals for developing energy conservation plans and new substitute energies

Energy conservation in the Solar Cells Industry

Note: US$：NT$＝1：33

year 2004 2005 2006 2007(est.) 2008 (est.)

Taiwan solar cells production capability (MWp)

58 133 440 960 1840

Taiwan solar cells production volume (MWp)

40 74 177.5 300 600

Aggregate investment (M US$) 60.6 115.2 321.2 557.6 824.2

Contributed power (10K kWh) 4800 8,880 21,300 36,000 72,000

Relative CO2 reduction (Ton) 30,600 56,700 135,900 229,700 459,400

3. Status quo and goals of Taiwan’s E&E industry

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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

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4. ConclusionMaintaining our competitive IT advantage while promoting clean production and industrial security risk central-satellite systems

Ａ． Promotion of clean production1.Central-satellite systems for clean production2.Promote social cost accounting practices3.CER/CSR promotions and eco info

C. R&D on strategic technology tools

1. Develop environmental cost evaluationtools for electric products

2. Maintain and update auditing toolsfor 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 productivity3. Compile and update the “clean production information

network”4. Promote applications of global eco-friendly

technology standards5. 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/informationCongruent with

eco standards & green policiesinternational

*APO: Asian Productivity Organization

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