Carbon Tax Push: TMBA Urges Government Action

Amid the looming implementation of the carbon tax policy, Patrick P. Chen, the 6th Chairman of the Taiwan Machine Tool & Accessory Builders' Association (TMBA), urged the government on August 30th to expedite its deployment to encourage domestic equipment purchases and the replacement of outdated machinery. He also recommended incorporating the energy label promoted by TMBA to spur the growth of the domestic machine tool industry and support the goal of achieving net-zero carbon emissions.

Looking ahead, Chen acknowledged the persistent challenges facing the machine tool industry, noting that a short-term recovery is unlikely. He highlighted the significance of the Federal Reserve's future decisions on interest rates and the outcome of the upcoming U.S. presidential election as key indicators to watch, with the industry's outlook expected to gradually become clearer. Also, as global climate change intensifies, the pursuit of net-zero carbon emissions has become a shared objective for governments and businesses alike. The machine tool industry, as a critical pillar of manufacturing, now faces unprecedented pressure to balance economic growth with environmental responsibility.

In response, TMBA has initiated the promotion of "Product Category Rules (PCR)" for six categories—machining centers, lathes, grinding machines, drilling machines, power presses, and electric discharge machines—starting in the fourth quarter of 2023.

Through its committee mechanism, TMBA aims to establish a credible framework for carbon footprint calculation that is fair, transparent, and industry-wide. This initiative is designed to equip the domestic tooling and component industry with standardized methods for calculating carbon footprints. By doing so, manufacturers can reduce carbon emissions, enhance competitiveness, and improve brand image. Additionally, transparent disclosure of product carbon emissions will satisfy the growing consumer demand for green products, thereby unlocking new international business opportunities.