German Businesses Urge Taiwan Government to Accelerate Sustainable Transition

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German businesses operating in Taiwan are urging the government to elevate its commitment to sustainable energy transition, asserting that it’s vital for the nation’s economic future. This call was underscored during the unveiling of the German Trade Office Taipei’s 12th annual business confidence survey on Thursday (Feb. 22).

Erdal Elver, president and CEO of Siemens Taiwan, emphasized the necessity for Taiwan to accelerate its timeline for achieving carbon neutrality by 2050, a goal frequently discussed among local and foreign business partners. Elver emphasized that while Taiwan aims for carbon neutrality, there’s a need for more ambitious targets. He noted that German companies have set clearer and more aggressive sustainability objectives than their Taiwanese counterparts. The survey revealed that 83% of German businesses in Taiwan have formally committed to sustainability, with 44% already implementing energy-saving measures.

Elver challenged stakeholders to consider achieving carbon neutrality sooner than 2050, urging a swifter approach to the energy transition. Axel Limberg, Head of the German Trade Office in Taipei, echoed these sentiments, emphasizing the importance of collaboration in achieving carbon neutrality, and highlighting the readiness of German companies to share expertise and collaborate with Taiwanese partners.

Deputy Minister of Economic Affairs Chern-Chyi Chen acknowledged the concerns raised by German business leaders regarding the energy transition. He reiterated the government’s commitment to diversifying renewable energy sources, citing increased investments following the enactment of the Renewable Energy Development Act. Chen expressed the ministry’s willingness to collaborate with German firms in developing sustainable energy solutions.

While the report showcased optimism among German companies regarding Taiwan’s economic environment, it also addressed key challenges. Cross-strait tensions emerged as a significant concern for German businesses, impacting supply chains and anticipated future business operations. The report recommended addressing issues related to energy security, enhancing foreign language skills, and tackling the skilled labor shortage. It advocated for increased vocational training options outside traditional university pathways.

Despite challenges, the survey underscored confidence in Taiwan’s business environment, with nearly half of German companies planning investments in 2023, particularly in staff training and development. The report emphasized Taiwan’s appeal as an investment destination and called for proactive measures to address ongoing challenges while fostering collaboration between government and private sectors in driving sustainable economic growth.