MOEA Promotes Green Industries

Taiwan's Ministry of Economic Affairs (MOEA) has selected eight industries as priority targets for developing "green" energy sources, with the aim of boosting the overall annual production value of such industries to NT$159.3 billion by 2010, according to the "Green Energy Industry Plan" just completed by the ministry.

The eight strategic segments are solar power, solar water heating systems, wind power, bio-diesel fuel, hydrogen powered fuel cells, LED (light emitting diode) lighting, freezing and air conditioning, and autos powered by gasoline/electric hybrid engines. In general, the industries can be broken down into two categories: renewable energies, such as solar power and wind power; and energy-conserving devices, such as LED lighting and hybrid cars.

To encourage the development of these industries, the MOEA will provide incentives by offering a 50% cut in commodity taxes for imported hybrid cars, by requiring solar powered devices for public facilities worth more than NT$50 million, establishing budget subsidies, and giving administrative guidance. With these incentives, the MOEA expects to induce private investments worth NT$24.6 billion for the selected industries.

Taiwan is currently in the R&D stage for the development of hybrid cars and has yet to manufacture the cars locally. In order to make the cars more popular and build market demand, the MOEA plans to provide a 50% cut on commodity taxes for imported hybrid cars, such as those from Toyota, which have entered mass production. Imports of hybrids may also be excluded from the calculation of the quota for all imported cars.

Moreover, the MOEA will help dealers set up domestic maintenance and service facilities for hybrid cars and will assist local manufacturers to develop the capability of producing components for such cars.

Taiwan has already established a place in the world solar power industry. Motech Electronics, for instance, is the world's 10th largest producer of solar powered batteries. In addition, Taiwan has the strong capability to produce controller chips for devices that harness solar power. To further boost the development of the island's solar power industry, the MOEA plans to cooperate with the Public Construction Commission by requiring the mandatory installation of solar powered devices for public facilities that cost more than NT$50 million to build. These public structures can include gymnasiums, office buildings, schools, and airports.

To spur the bio-diesel fuel industry, the MOEA has coordinated with Taiwan's Council of Agriculture, which will award subsidies to farmers that grow oil-rich plants such as wheat and sunflowers. Such crops will be used for the production of bio-diesel fuel that will be used in garbage-collecting trucks on a trial basis.