Twenty-first International Conference on Environmental, Cultural, Economic & Social Sustainability

Abstract

The commencement of the European Union’s Carbon Border Adjustment Mechanism (CABM) transitional phase in Oct 2023 heralds the arrival of the international carbon tariff era. Although CABM’s full implementation will not occur until 2025 and the scope of CBAM is limited to six industry sectors, this new initiative has raised many concerns across nations (Park, Yamamoto, Doong, 2023). According to survey analysis, the primary drivers compelling Asian countries to pursue net zero goals are international carbon tariffs and various international environmental sustainability norms. Under international pressure, the direction of reform and transformation is deeply influenced by global trends and domestic constraints. Taiwan’s manufacturing industry, oriented towards exports and serving as a critical supplier for international corporations, urgently needs to implement carbon management. Pain points in Taiwan’s manufacturing industry’s carbon management include increased costs due to carbon taxes, products lacking relevant environmental certifications, unclear understanding of various international sustainability regulations and standards, insufficient green energy supply, and a lack of methods for managing low-carbon supply chains. This paper takes Taiwan’s manufacturing industry as an example, using empirical methods supplemented by case studies to illustrate the coping strategies and new opportunities for Taiwanese enterprises in the era of carbon tariffs. The research findings indicate that establishing mechanisms for managing low-carbon supply chains will be crucial for the sustainable competitiveness of Taiwan’s manufacturing industry.