TAIPEI (TVBS News) — As global carbon regulations tighten across major markets, Taiwanese businesses must rapidly adapt to a new economic reality where carbon emissions carry explicit financial costs, according to Jesse Chou (周志宏), chief sustainability officer at Delta Electronics (台達電), one of Taiwan's largest electronics manufacturers. Speaking at the inaugural event of the "Taiwan Next think tank" (Taiwan Next 前瞻國家智庫), a newly established policy research organization, on Wednesday (May 7), Chou delivered an urgent message about the fundamental shifts occurring in international trade and domestic environmental policy.
The sustainability executive specifically pointed to two transformative regulatory frameworks that will reshape business operations: the European Union's Carbon Border Adjustment Mechanism (CBAM), which will impose carbon-related import tariffs on goods entering the European market, and Taiwan's forthcoming domestic carbon fee system. These parallel developments represent watershed moments in global climate policy that will have direct financial implications for Taiwanese exporters and manufacturers across multiple industries, according to Chou's assessment at the think tank event.
During his presentation, Chou urged Taiwanese corporations to proactively implement internal carbon pricing systems rather than waiting for external regulatory pressure. He emphasized that the precise initial fee amount is less critical than establishing the fundamental pricing mechanism itself. Once companies begin assigning monetary value to carbon emissions, Chou explained, they naturally develop stronger financial incentives to pursue energy efficiency and emissions reductions, while simultaneously gaining clearer visibility into previously hidden environmental costs within their operations and supply chains.
Drawing from Delta Electronics' own experience, Chou detailed the company's progressive implementation of internal carbon pricing, which began in 2014 at their manufacturing facilities in China with a modest rate of 20 RMB per ton of carbon emissions. The initiative proved so effective that Delta expanded it to all global operations by 2017, simultaneously increasing the internal price to US$50 per ton. In 2021, the company dramatically elevated this internal carbon valuation to US$300 per ton. This aggressive pricing strategy generates billions of New Taiwan dollars (equivalent to tens of millions of US dollars) annually in Delta's dedicated carbon fund, which finances the company's comprehensive emissions reduction initiatives.
The sustainability executive outlined Delta's three-pronged investment approach for deploying its substantial carbon fund: enhancing energy resource management systems, accelerating low-carbon technological innovations, and expanding renewable energy infrastructure and procurement. This strategic allocation creates what Chou described as a virtuous cycle of continuous improvement in the company's environmental performance. He stressed that these investments deliver compounding returns over time through reduced operational costs, enhanced product competitiveness, and strengthened corporate reputation, demonstrating the long-term business value of systematic carbon management beyond mere regulatory compliance. ★