A decade after the Paris Agreement, the world faces a pivotal moment for climate action as the third round of Nationally Determined Contributions (NDC 3.0) approaches. Progress remains uneven worldwide. By late 2025, just one-third of signatories had submitted their 2035 targets. Even leading economies differ: Europe holds ambitious, yet unratified, goals while U.S. commitments fluctuate with political cycles. In contrast, China, the world’s largest greenhouse-gas emitter, recently set its first absolute emission-reduction target: a 7–10% cut from its peak emissions by 2035. While the peak year remains unspecified, the commitment signals increased accountability.

Against this fragmented backdrop, Taiwan’s electronics and ICT sectors have chosen a path of steady commitment. Although not a formal Paris Agreement signatory, Taiwan has voluntarily embraced alignment with global climate initiatives. The nation’s third-round NDC 3.0 sets a target of reducing emissions by 38±2% by 2035 compared with 2005 levels, underscoring its commitment to global net-zero ambitions. As the island’s economic backbone and a cornerstone of global technology supply chains, these industries have embraced carbon reduction not as a compliance burden but as a strategic capability.

Resilience Under Pressure: Driving Decarbonization in a High-Output Industry

As a leading global hub for electronics and ICT manufacturing, Taiwan faces the dual challenge of maintaining export competitiveness while reducing carbon emissions. In recent years, “carbon competence” has become a new metric for business resilience. International clients now evaluate suppliers not only on price and quality, but also on carbon performance, making decarbonization a prerequisite for securing orders.

Rapid AI expansion both aids and challenges decarbonization. AI helps optimize energy use and spot inefficiencies, but it also drives up power consumption in data centers and chip manufacturing. Balancing innovation with sustainability has thus become a defining test for Taiwan’s ICT industry.

Taiwan’s electronics industry exemplifies high-output, low-emission growth. In 2023, its production value climbed 14 percent, while emissions rose by under 3 percent—proof of rapid efficiency and energy management gains. Even as emissions grew 2.8 percent year-on-year in 2024, this increase occurred alongside major capacity expansions prompted by geopolitical realignment and global supply-chain diversification.

Behind these numbers lies a deeper story of resilience. The industry’s determination to sustain carbon-efficiency gains amid expanding output underscores its role as both an economic driver and a sustainability pioneer.

Three Pillars of Industrial Decarbonization

To reach net-zero, Taiwan’s electronics and ICT sectors are moving forward on three core pillars:

1. Energy Efficiency and Smart Management Over 80% of companies use energy-saving measures at their facilities. These efforts include upgrading systems, replacing outdated equipment, and improving efficiency with digital controls. Nearly half have added smart sensors and meters to gather real-time data, pinpoint energy hotspots, and automate adjustments. AI-based management tools further support predictive maintenance and scheduling, transforming factories into smart, low-carbon operations.

2. Renewable Energy Deployment The semiconductor sector leads Taiwan’s renewable energy push. Regulations now require major emitters to add renewable capacity equal to at least 10% of their contracted power within five years. This policy is driving investment in onsite solar and green power agreements, making renewables a competitive advantage—not just a compliance measure—in global supply chains.

3. AI-Driven Digital Transformation Beyond process optimization, AI is now central to carbon reduction innovation. Companies automate carbon tracking, model emissions, and control power loads with AI tools. Leading firms use AI in production to make real-time adjustments, cutting idle energy and boosting overall efficiency. This fusion of digital tech and sustainability is reshaping Taiwan’s factories, making them smarter and more adaptive.

From Conservation to Innovation: A New Mindset for Net-Zero

Although emissions have temporarily increased, the ICT industry is on track to stabilize and decrease after 2025, when emissions are expected to peak. Continued investments in upgrades, renewables, and digital efficiency should soon offset the rise linked to expansion. 

Taiwan’s next challenge is shifting from simple conservation to true innovation. Basic energy cuts are not enough; now, ecosystem partnerships and green value creation matter most. Leading firms work closely with suppliers to build shared sustainability frameworks and extend carbon reduction across entire supply chains.

Looking Ahead: Building a Sustainable Competitive Edge

As a key partner in global green supply chains, Taiwan’s ICT industry is transforming its role from technology producer to sustainability leader. By blending hardware expertise, digital intelligence, and coordinated innovation, Taiwan is set to turn net-zero compliance into new opportunities. Emerging markets, including green chips, energy-efficient components, and AI sustainability tools will help Taiwan’s companies deliver both environmental benefits and economic growth. This approach strengthens the sector’s resilience and supports the global shift to a low-carbon, connected future.