The future of carbon credits is the main topic of the key post-COP26 event held in Taiwan

President Tsai Ing-Wen said in his speech that the Net-Zero 2050 goal is not only a challenge for the world, but also for Taiwan. She stressed that despite a number of difficult challenges, it is incumbent Taiwan accelerate its transformation towards net zero through a four-pronged approach: first, the search for new energy sources such as hydrogen and green energies of the future must be undertaken to maintain the energy transition; second, industrial transformation from process optimization to the use of renewable energy must be accelerated to respond to changing market conditions; third, a transition to low-carbon public buildings and net-zero transport is a necessary lifestyle change that must be embraced; and fourth, equity is essential for public engagement in societal transformation.

The summit also invited global experts to present an ESG development roadmap to business leaders and investors. Key speakers included Robert N. StavinsAJ Meyer Professor of Energy and Economic Development, John F. Kennedy School of Government, Harvard Universitywho spoke about his ideas on the post-COP26 climate policies, and Todd Cortco-director of the Yale Center for Business and the Environment, which looked into the carbon trading market after COP26. Both speeches were delivered online.

From the perspective of financial companies, the chairman of Wing Fung Financial Group Sih Kuan Chen emphasized that climate action has become the most widespread global consensus of all time and that companies must incorporate four “imperatives” into their net-zero strategies: compliance, optimization, reinvention and leadership . Wing Fung is committed to achieving the goals of net zero emissions from operations by 2030 and from the entire asset portfolio by 2050.

Ying Chou ChenHead of Sustainability Services Group, Deloitte & Touche, said there are two ways to deal with climate change: on the one hand, by modifying operational procedures and/or production facilities to reduce greenhouse gas emissions greenhouse, while, at the same time, energy efficiency is enhanced by the development of new carbon reduction technologies, on the other hand, by precautionary measures taken to protect the company from the impact of change climate in the future.

Chairman of China Petrochemical Development Corporation (CPDC) Ruey Long Chen noted that in response to future industrial demand, the priority of current green energy supply should be to improve carbon production on the process side and upgrade existing equipment to reduce energy consumption. He further added that the amount of water vapor used by the petrochemical industry is excessive and its use should be reduced or even reduced to zero.

Alex Araujoglobal equity fund manager at M&G Investment, mentioned that the influx of money into sustainability funds has led to an overvaluation of clean and renewable energy companies and, if the current boom falters, investors risk to suffer huge losses.

Chairman of the Taiwan Depository & Clearing Corporation (TDCC) Hsiu-Ming Lin pointed out that TDCC is the first RI platform in the world to provide ESG ratings to individual and institutional investors, a metric that has become highly valued by overseas investors. The platform has become one of the main sources of ESG data in the region.

Chairman of Taiwan Housing Group Pei Ye Peng said that small and medium-sized enterprises (SMEs) were the backbone of Taiwan the economy, and what they can bring is something we have to think about. Taiwan Housing is now promoting a 10-year tree-planting initiative to show employees that the company they work for operates with a long-term perspective.

President of the Association of Pension Funds Professor Li Ling Wang noted that the ESG investment market has continued to grow, and after the pandemic, investors have paid more attention to ESG. Over 90% of large institutional investors and pension funds have increased their ESG investments, showing the importance of ESG in future investment decisions.

SOURCE Business Today Magazine

Jessica C. Bell