Dialog Between TAEDT and the Ministry of Environment (MOENV) Regarding Net-Zero Carbon Emissions and Environmental Sustainability

（Front row from left）George Hsu, Director Professor of TAEDT｜Chi-Ming Peng, the Ministry of MOENV｜Meng-Yun Kuo, Director of Emissions Management Division｜I-Yun Su, Director of Emissions Redusction and Trade Division
（Back row from left）Xin-En Wu, Director of EnergyOMNI ｜Robert Li PhD, Chairman of TENGE energy resources｜Hong-Yi Hong, Executive of Immerse Digitize Engineering｜Yvonne Tsai, General Manager of O’right｜James Chiao, President of Taiwan Smart Solutions Association (TSSA)｜Dr. David Hsieh, Secretary-General of TAEDT｜Jonson Hsieh, CEO of Chimes AI｜Jian-Jhang Chen, General Manager of Ares International Certification｜Yu-Ru Wu, Deputy Secretary-general of TAEDT/strong>

On August 9, the Taiwan Industry-Academia Technology Alliance for Energy Digital Transformation (TAEDT), led by Director Professor George Hsu and Secretary-General Dr. David Hsieh, visited the Ministry of Environment (MOENV) for perspectives exchange. Minister Chi-Ming Peng personally received the alliance representatives and listened to their recommendations regarding net-zero carbon emissions and environmental sustainability. The topics including domestic waste disposal, international carbon credit applications, strategies for promoting green certification, carbon management in traditional manufacturing industries, the application of AI and big data in flue gas emissions, and the role of digital twin technology in achieving the 2050 net-zero target.

During the meeting, Minister Peng responded to the aforementioned issues individually, with relevant department heads from the MOENV providing feedback. Professor Hsu shared the achievements of the alliance over the past two years, emphasizing the core mission of advancing virtual power plants. The participants engaged in lively discussions, addressing key issues from a public-private partnership perspective to promote the concept of environmental sustainability and to continue deepening the exchange.

The Potential of Virtual Power Plants (VPPs) in Taiwan
Professor Hsu emphasized that virtual power plants (VPPs) are not intended to replace baseload power plants. However, as the share of renewable energy rapidly increases, VPPs have been widely adopted in Europe and the United States. It is projected that by 2030, VPPs will account for 10% to 20% of the U.S. peak load market. For Taiwan, where industrial electricity consumption accounts for 60% of the total, VPPs have even greater potential. Similar to Uber or Airbnb in the electricity market, VPPs are based on a shared economy and crowdsourcing, which can promote a transition to a low-carbon lifestyle and societal transformation, ultimately enhancing the resilience of the power system.

The main challenges in promoting VPPs in Taiwan lie in regulatory constraints and public awareness. While Europe and the United States have amended regulations to support VPP development, with the U.S. Department of Energy actively promoting the flexibility and importance of VPPs, Taiwan requires higher-level cross-departmental collaboration and support. This includes cooperation from the Ministry of Economic Affairs, the Ministry of the Interior (MOI, e.g., promoting smart energy-saving building management systems), and the Ministry of Transportation (e.g., promoting the smart application of electric vehicles in VPPs). The alliance estimates that by 2035, VPPs could account for over 20% of Taiwan’s electricity market share. The utilization of smart grids, virtual grids, and VPPs could complement and benefit the traditional centralized high-voltage power supply model.

Strategies for Old Waste and Waste Disposal
Robert Li, PhD, Chairman of TENGE energy resources, pointed out that the inspection teams had previously requested that each municipality submit landfill and waste disposal plans, but specific decisions were lacking. Li suggested re-evaluating existing plans, taking technological advancements into account, and encouraging private investment to alleviate the government’s financial burden. Regulatory issues also need to be addressed. Li recommended that the MOENV establish a task force to resolve issues related to land use and cross-departmental collaboration, such as coordination with the MOI, the Construction and Planning Agency, and urban planning laws.

He further proposed selecting three demonstration cities—north, central, and south—to break through regulatory barriers through pilot projects, advancing the circular economy and agricultural circular economy. Li stressed the importance of communication with local governments and the public when promoting technologies like SRF (Solid Recovered Fuel), to avoid reliance solely on local political figures, and underscored the importance of controlling raw materials from the source.

Challenges and Solutions for International Carbon Credit Recognition
Jian-Jhang Chen, General Manager of Ares International Certification, stated that while Ares is committed to carbon emission management, it faces difficulties obtaining recognition from international registries. Even securing recognition from Verra requires first obtaining certification from Inclusive Framework (IF) member institutions, and Taiwan is not yet listed among the certifying countries. Although the Taiwan Accreditation Foundation (TAF) has a memorandum of understanding (MOU) with Verra, this does not imply that TAF recognition will automatically be accepted by Verra. Gold Standard’s recognition requirements are even stricter, only qualifying organizations certified by Forest Stewardship Council (FSC).

Chen urged the MOENV or national policy support to assist Taiwanese companies in gaining international recognition, advancing net-zero emissions and carbon neutrality development. The Ministry responded that current inspection work is primarily conducted within the domestic regulatory framework, and it is challenging to directly interface with the international carbon credit system due to the parallel nature of government systems. From the perspective of aligning with international standards, the Ministry recommended promoting more diversified carbon credit recognition options to offer Taiwanese companies more choices.

Diversifying Green Certification
Yvonne Tsai, General Manager of O’right, suggested that the Ministry accelerate the diversification of green certification. Combining the circular economy with green consumption could provide both a driving force and a pull, speeding up carbon reduction efforts. Although the Ministry has introduced high-recycling and net-carbon-zero standards, these labels mainly reference existing government standards, which have limited impact on accelerating national carbon reduction efforts. Tsai suggested learning from U.S. experiences and collaborating with private certification centers to develop a system that expands the scope of recognition, incorporating more environmental and green labels to encourage greater corporate participation in the green transition.

Currently, national policy encourages carbon reduction for single products, but many companies have achieved carbon neutrality at the organizational or full-product level, yet have not received sufficient incentives in green procurement. Tsai emphasized that stronger incentives should be offered to companies that have already achieved carbon neutrality, fostering broader industrial transformation and carbon reduction.

Carbon Management Challenges for Small and Medium-Sized Manufacturing Enterprises
Hong-Yi Hong, Executive of Immerse Digitize Engineering, pointed out that small and medium-sized manufacturing enterprises face challenges in carbon management, especially when transitioning from organizational to product carbon management. SMEs require flexible cost structures and real-time inventory management, but most have not yet adopted cloud-based Enterprise resource planning (ERP) systems, making it difficult to effectively collect and analyze carbon emissions data. Hong suggested introducing smart meters (EMS) into the manufacturing process to improve the precision of carbon emission data tracking and enhancing data transparency through public data platforms.

Hong also recommended providing more government subsidies and technical guidance for SMEs to promote the adoption of carbon management systems. Additionally, he stressed the importance of integrating digital tools and policies to support enterprises in achieving the goal of a 50% carbon reduction by 2032.

Application of AI and Big Data in Flue Gas Emissions
Jonson Hsieh, CEO of Chimes AI noted that Taiwan's flue gas emission monitoring currently relies heavily on physical sensors, which require daily manual calibration and maintenance, leading to inefficiencies. In contrast, the U.S. Environmental Protection Agency (EPA) has been using predictive emission monitoring systems (PEMS), based on AI and big data technology, since the 1990s, significantly improving monitoring accuracy.

Hsieh recommended introducing AI training and predictive technology to enhance traditional emission monitoring methods, increasing efficiency and data accuracy. This would not only improve the reliability of emission monitoring but also contribute to greater data transparency and enhance corporate branding. Hsieh called for accelerating regulatory improvements to enable widespread use of AI and big data technologies in emission monitoring, reducing reliance on manual calibration.

Digital Twin Technology and the 2050 Net-Zero Target
James Chiao, President of Taiwan Smart Solutions Association (TSSA), emphasized that carbon management and smart solutions are key tools for addressing climate change challenges. Digital twin technology, which integrates digital technologies with physical models, can enable physical integration and intelligent feedback, leading to the formulation of more sustainable, low-carbon policies. Digital twin technology is already being used in Taiwan for managing underground pipelines and monitoring factories, significantly improving operational efficiency and reducing carbon footprints.

Chiao recommended that Taiwan fully leverage these technological advantages to drive digital transformation and achieve the 2050 net-zero carbon target. Establishing digital twin demonstration zones, such as smart parks or smart ports, could facilitate data sharing and collaboration, further enhancing carbon reduction capabilities and promoting industrial transformation.