Taiwanese Enterprises Go for Green Production

The impending implementation of a number of international green accords is prompting Taiwan's manufacturers to "go green" on everything from raw materials to production process and finished products in order to avoid the non-tariff trade barriers those accords will bring to all who fail to comply.

The "green tide" is already being reflected in the outstanding performance of "solar energy concept stocks" on Taiwan's bourse in the wake of soaring global oil prices. For example, stock in Wafer Works and Sino-American Silicon, both manufacturers of silicon materials for solar-energy batteries, have doubled over the past two months.

Aside from the implementation of the Kyoto Protocol, the European Union plans to put a number of other environment-related accords into force soon, including WEEE (the EC Directive on Waste and Electronic Equipment), which governs the collection of waste electrical machinery and electronic products, and RoHS (Restriction on the Use of Certain Hazardous Substances in EEE), which restricts the use of hazardous chemicals.

Although Taiwan is neither a member of the United Nations nor a signatory of the accords, many Taiwanese exporters are striving to conform to their regulations in order to meet the demands of buyers and keep their overseas markets.

In response to the implementation of the Kyoto Protocol, for instance, the steel and semiconductor industries have voluntarily signed agreement to cut their greenhouse gas emissions in order to assure continuing smooth sales to the signatory nations.

In addition to providing guidance on how to cope with the implementation of WEEE and RoHS, the Department of Industrial Technology under the Ministry of Economic Affairs has launched a "G plan" aimed at helping 1,000 suppliers in 15 central-satellite plant systems to meet their requirements.

Meanwhile, reports the Environmental Protection Administration, the government spent more than N$7.509 billion last year in carrying out its "green procurement" policy. The aim of this policy is to boost the ratio of "green procurement" to 75% next year, which will create business opportunities worth NT$6 billion.

Major PC makers, including Acer, Asustek, HP, and IBM, have all rolled out green computers that bear the Taiwan government's environmental-protection mark of approval, and Yuen Foong Yu Paper and Cheng Loong Paper have both launched the production of recycled paper. This will enable all of these companies to benefit from the government's "green procurement" policy.

The Environmental Protection Administration also plans to step up its encouragement of local enterprises and consumers to purchase green products such as solar-energy batteries, lithium batteries, and LED lighting products.