summary:
Starting from policy trends and industry trends, this article points out that the current impact on small and medium-sized enterprises on the issue of net-zero emissions mainly comes from the EU carbon border management mechanism and the trend of supply chain carbon reduction. In the second part, it is explained that small and medium-sized enterprises can pass three Steps address the challenges arising from the net-zero emissions agenda. The third part of the article takes into account the limited manpower and funds of small and medium-sized enterprises and the fact that carbon reduction strategies must be easy to introduce and implement, and puts forward suggestions for implementing carbon reduction through energy conservation.
1. The impact of net-zero emissions on small and medium-sized enterprises:
Faced with the issue of net-zero emissions, excluding small and medium-sized enterprises that voluntarily promote carbon reduction or commit to net-zero emission targets, the impact on small and medium-sized enterprises mainly comes from two aspects. First, the control measures of relevant domestic and foreign laws and regulations, and second, the pressure brought by brand owners’ commitment to supply chain carbon reduction.
1. Relevant laws and regulations at home and abroad
First, regarding the control measures of relevant domestic and foreign laws and regulations. In the past, the Ministry of Environment only required companies with direct carbon emissions exceeding 25,000 tons to conduct greenhouse gas inventory and verification operations every year, and log the inventory results into the "Enterprise Greenhouse Gas Emissions Information Platform." The companies subject to regulation include 287 companies in electricity, cement, steel, petroleum, semiconductors, and panel manufacturing.
However, starting from 2023, the Ministry of Environment will amend the "Greenhouse Gas Emissions Inventory Registration and Inspection Management Measures" and expand the control objects, requiring companies with a total direct carbon emissions and indirect carbon emissions exceeding 25,000 tons of CO2e. Every October You must log in your greenhouse gas emissions on the "Business Greenhouse Gas Emissions Information Platform" before the 31st. After the Ministry of Environment’s control measures were expanded, nearly 230 new companies were added in the electronic components manufacturing industry, chemical materials manufacturing industry, textile industry, metal basic industry, non-metallic mineral products manufacturing industry and other industries, bringing the total number of companies under management to 512. , covering Taiwan’s carbon emissions of approximately 70%. The Ministry of Environment stated that this measure does not target small and medium-sized enterprises as the main control targets. It is initially estimated that the affected small and medium-sized enterprises will mainly be larger manufacturers among small and medium-sized enterprises. It will bring serious consequences to small manufacturers who relatively lack professional manpower and resources. The impact is limited.
The current regulation that has a greater impact on small and medium-sized enterprises is actually the European Union Carbon Border Management Mechanism (EU CBAM). The main reason is that the EU controls product categories rather than carbon emissions, which requires companies that export controlled products to the EU to take corresponding measures. The EU will start a trial carbon border management mechanism on October 1, 2023. The control includes steel (including downstream screw, nut and fastener products), aluminum, cement, fertilizer, hydrogen, electricity and other products imported into the EU. Product carbon emissions must be declared. Quantity data. Comparing my country's product export data, the EU's carbon border management mechanism mainly targets screw, nut, fastener and aluminum product manufacturers.
For declarations under the EU carbon border management mechanism, small and medium-sized enterprises can fill in the relevant data according to the declaration forms provided by the EU, submit them to traders, and complete the declaration process. The government assists small and medium-sized enterprises in strengthening their ability to fill out reports through education and training courses or workshops. It also promotes to small and medium-sized enterprises that currently the data reported under the EU carbon border management mechanism does not need to be verified by a third party, nor does it need to pay any voucher fees ( Commonly known as carbon tariff), if it is difficult to obtain data related to carbon content, you can also use the preset values provided by the EU for calculation to improve the carbon anxiety of small and medium-sized enterprises.
2. Pressure from supply chain carbon reduction
The pressure to reduce carbon emissions in the supply chain mainly comes from the carbon reduction commitments made by brands in order to make a positive contribution to the environment and respond to external expectations. These carbon reduction commitments often involve reducing carbon emissions from suppliers, thus intensifying the intensity of supply chain management measures and putting direct pressure on small and medium-sized enterprises in the supply chain. For example, Apple, a major mobile phone brand, is actively requiring its suppliers to promote carbon reduction measures in order to achieve the goal of carbon neutrality for all its products in 2030. Toyota, a major automobile brand, has set a carbon neutral goal for 2050. Suppliers are also required to cooperate in gradually achieving carbon reduction targets. These demands from clients pose direct challenges to the operations of small and medium-sized enterprises. Apart from regulations, they are the measures that have the greatest impact on small and medium-sized enterprises and are the most extensive.
2. Steps for small and medium-sized enterprises to adapt to the net-zero transformation:
Faced with the above challenges, small and medium-sized enterprises can step by step respond to the various challenges posed by the net-zero emission issue to their operations through steps such as "clarifying needs", "setting goals", and "planning and executing".
(1) Clarify needs
The first step for SMEs to respond to the net-zero emissions challenge is to clarify the specific needs of external pressures. First of all, although the greenhouse gas inventory specifications of the Ministry of Environment and the carbon emission content of products required to be declared under the EU carbon border adjustment mechanism are both required to declare carbon emissions, the scope is completely different. Therefore, it is necessary to clarify the specific needs before starting relevant work. So as not to do twice the result with twice the result. Secondly, the pressure to reduce carbon emissions from the supply chain is more diverse and needs to be carefully clarified. For example, the customer may simply require the organization to complete an inventory of greenhouse gas emissions, or it may require increasing the proportion of recycled materials, introducing renewable energy, or completing an inventory of greenhouse gas emissions within a time limit and formulating a mid- to long-term carbon reduction strategy, etc. . SMEs must clearly understand the needs of their customers so that they can respond appropriately and appropriately.
(2) Setting goals
Once needs have been identified, SMEs can start setting goals. These goals may come from regulations, such as completing organizational greenhouse gas inventory and verification within half a year so that relevant data can be logged into the "Business Greenhouse Gas Emissions Information Platform", or completing product carbon content calculations within three months and submitting the data. provided to traders. The goal from client demand may be to achieve a specific carbon reduction goal. In order to achieve this goal, small and medium-sized enterprises may need to invest resources to perform carbon emission hotspot analysis and formulate and implement appropriate carbon reduction strategies.
(3) Planning and execution
After clarifying needs and confirming goals, small and medium-sized enterprises can plan and implement carbon reduction strategies based on the set goals. Considering that small and medium-sized enterprises have limited professional manpower, they may need to cooperate with external teams, such as carbon inventory coaching units, technology research and development units, energy technology service industries, etc., to jointly complete carbon inventory, hot spot analysis, energy-saving strategies, technology improvements, etc. Leverage the knowledge and experience of our professional team to efficiently plan carbon reduction strategies. After the specific implementation of the carbon reduction strategy, the focus will be on regularly recording work results and publicly disclosing carbon reduction performance. On the one hand, it accumulates and optimizes the data basis of carbon reduction work, strengthens the sense of identity of internal members and builds consensus on actions. On the other hand, it also communicates the results of the work to supervisory units, customers, consumers and other demanders to respond to needs.
Participate in the starting steps for small and medium-sized enterprises to implement carbon reduction
In view of the relatively limited manpower and funds, small and medium-sized enterprises can start from the perspective of equipment upgrading and energy saving when starting carbon reduction work. On the one hand, small and medium-sized enterprises can often obtain significant carbon reduction benefits through equipment upgrading. On the other hand, the effectiveness and payback period of corporate energy conservation are easier to evaluate than strategies such as process upgrades, circular economy, and digital green dual transformation.
1. Equipment upgrade
Considering that the carbon emissions of small and medium-sized enterprises mainly come from energy use, energy conservation through equipment upgrading is a direct and efficient way, such as replacing old boilers, air conditioning equipment, refrigeration/heating equipment, diesel vehicles, and even Replacing traditional old lamps with LED lamps can achieve significant carbon reduction effects by improving energy efficiency. For example, Crystal Doors, a British door and system cabinet manufacturing factory, replaces old equipment year by year, including replacing oil boilers with biomass boilers, old lighting equipment with LED equipment, and electric vehicles replacing old equipment. Vehicles, etc., as well as the installation of waste scrap recycling systems and rooftop solar panels in the factory have created significant carbon reduction benefits. The company's carbon emissions have dropped from 290 tons of CO2e in 2015 to 70 tons of CO2e in 2022, and have been maintained during the same period. Following the company's continued growth trend.
2. Energy saving optimization
Even small and medium-sized enterprises that have completed equipment upgrades can still explore the potential for carbon reduction by working with energy-saving experts, such as improving building energy consumption, optimizing the operation of existing equipment, and installing sensing equipment, etc., which can further improve the company's performance. carbon emissions. Take Makengineering Corporation, a Japanese precision parts manufacturer, as an example. After completing the equipment upgrade, the company still hired energy-saving experts to conduct site surveys, collect and analyze energy usage data, and propose further energy-saving plans.
Energy-saving experts suggested that Makengineering Corporation increase the thermal insulation of the building by applying thermal insulation paint on the roof, thereby reducing the burden on the air conditioning system. At the same time, it can further improve the air compressor by adjusting the nozzles of the air compressor in the factory. of energy consumption. In addition, energy-saving experts also recommend the introduction of automatic power-off equipment to automatically shut down equipment that has been on standby for a long time and reduce standby energy consumption. Through the above measures, even a company that has completed equipment upgrades and replacements can further reduce carbon emissions 6.4%.
4. Findings and Suggestions
(1) The main pressure on small and medium-sized enterprises at this stage comes from the EU carbon border management mechanism and client demand
The pressure on enterprises to reduce carbon comes from many aspects. However, in terms of current policies, regulations and industry development trends, the pressure on small and medium-sized enterprises mainly comes from the EU carbon border management mechanism that controls products by product type, and the supply chain of brand owners. Carbon reduction commitment. Although the Ministry of Environment has expanded the scope of management for companies whose total direct carbon emissions and indirect carbon emissions exceed 25,000 tons, the impact on small and medium-sized enterprises is still relatively limited.
(2) Small and medium-sized enterprises can respond to external pressure through three steps and initiate carbon reduction work through equipment upgrading and energy conservation.
Faced with the EU carbon border management mechanism and the demand for carbon reduction in client supply chains, if small and medium-sized enterprises intend to start promoting carbon reduction, they can respond through the three steps of "clarifying needs", "setting goals" and "planning and execution". In addition, considering the manpower and financial needs of small and medium-sized enterprises, it is recommended that small and medium-sized enterprises can start carbon reduction work through equipment upgrading and energy conservation. In addition to bringing significant carbon reduction benefits to small and medium-sized enterprises, equipment upgrading and energy saving are also easier to evaluate and recover costs than other strategies, making them highly effective for small and medium-sized enterprises with limited resources and professional manpower. feasibility.
Source:
1. Currently, the Ministry of Environment has not announced the list of companies that have completed greenhouse gas inventory registration in 2011. According to the latest information released so far, there are 289 listed companies, all of which are manufacturing companies.
Sponsor: Ministry of Economic Affairs, Small, Medium and New Enterprises Agency, Ministry of Economic Affairs
Execution unit: Plastic Industry Technology Development Center
