Voluntary GHG reduction of industrial sectors in Taiwan

Abstract

The present paper describes the voluntary greenhouse gas (GHG) reduction agreements of six different industrial sectors in Taiwan, as well as the fluorinated gases (F-gas) reduction agreement of the semiconductor and Liquid Crystal Display (LCD) industries. The operating mechanisms, GHG reduction methods, capital investment, and investment effectiveness are also discussed. A total of 182 plants participated in the voluntary energy saving and GHG reduction in six industrial sectors (iron and steel, petrochemical, cement, paper, synthetic fiber, and textile printing and dyeing), with 5.35 Mt reduction from 2004 to 2008, or 33% higher than the target goal (4.02 Mt). The reduction accounts for 1.6% annual emission or 7.8% during the 5-yr span. The petrochemical industry accounts for 49% of the reduction, followed by the cement sector (21%) and the iron and steel industry (13%). The total investment amounted to approximately USD 716 million, in which, the majority of the investment went to the modification of the manufacturing process (89%). The benefit was valued at around USD 472 million with an average payback period of 1.5 yr. Moreover, related energy saving was achieved through different approaches, e.g., via electricity (iron and steel), steam and oil consumption (petrochemical) and coal usage (cement). The cost for unit CO(2) reduction varies per industry, with the steel and iron industrial sector having the highest cost (USD 346 t(-1) CO(2)) compared with the average cost of the six industrial sectors (USD 134 t(-1) CO(2)). For the semiconductor and Thin-Film Transistor LCD industries, F-gas emissions were reduced from approximately 4.1 to about 1.7 Mt CO(2)-eq, and from 2.2 to about 1.1 Mt CO(2)-eq, respectively. Incentive mechanisms for participation in GHG reduction are also further discussed.