Environmental Protection Administration Government of Republic of China 1 Building A Green Business...

11Environmental Protection Administration Government of Republic of China

Building A Green Business Model in Asia- Taiwan as A bridge

Overview of Environmental Science and Technology Park (ESTP) Project in Taiwan

Dr. Chih C. Chao

March 2004


Contents

1. Introduction: Green Business Opportunities

2. ESTP Project in Taiwan

3. Strength of Taiwan: A Bridge to Asia

4. Incentive and Assistance Programs

5. Green Business Model

6. Summary


Introduction - Strategic Position of TaiwanIntroduction - Strategic Position of Taiwan


Introduction - Green Business Opportunities in Asia 　

- Asia: an economic activity center

- Taiwan: a top performer in economic growth, with successful

record of trade and investment in China and Southeast Asia

- Circular economy model: a “must” in today’s world, to ensure

sustainability and competitiveness

- Eco-industrial development: a “must do” in Taiwan, also serving

as a bridge to green business in Asia

- ESTP (Eco-Park) Project in Taiwan: 10-year, US$ 400 million,

initiated by EPA in 2003


Introduction - Green Business Opportunities (cont’d) 　

- Cooperative partnership sought: innovative and entrepreneurial

companies

- Form of cooperation: independent investment, technology

transfer, JV etc.

- Focal areas: high value-added resource recovery, advanced

environmental and energy technologies, eco-industrial business

- Opportunities: renewing 2.5 million tonnes of materials annually,

generating an annual revenue of US$ 1 billion; establishing a

solid operating base in Taiwan with market access to Asia


ESTP Project in Taiwan - Origin 　• Project Origin:

- in line with world trend on sustainable development

- making best effort to resolve urgent environmental

issues

- searching for ways and means to enhance green

competitiveness

- meeting current policy requirements:

. air bubble management . water pollution fees

. safe water supply . resource recovery act

. nuclear-free country . zero waste disposal


ESTP Project - Objective 　 10-Year ESTP Project embarked by Taiwan to:

- pursue the goal of sustainable development

and globalization

- develop a circular economy

. inviting innovative and entrepreneurial eco-

business worldwide to join

. seeking cooperative partnership in: value-added

resource recovery, advanced environmental

technology and eco-industry


ESTP Project - Objective (cont’d) 　

10-Year ESTP Project embarked by Taiwan to:

- realize an opportunity of an exemplary

green business model by:

. pulling relevant expertise and capitals together on

an international scale

. building a base in Taiwan while accessing the Asia

market with a strong local support


Features of ESTPs - Layout　• Overall Layout:

- consisting of :

. mass production area . R & D area

. support facility area . management center

. education and exhibition center

• Eco-Engineering:

- facility designed to ensure eco-friendly environment

- park planned to ensure synergistic industrial

clustering effect


Features of ESTPs - Uniqueness 　

• Materials to be renewed/recycled

- expected to amount to 2.5 million tonnes per year

- providing a sound base for eco-industry operation

• Ushering in cutting-edge environmental technologies

• Allowing international enterprises to :

- establish a strong base in ESTPs

- use Taiwan’s strong and influential economic link

- further expand business to Asia region


Features of ESTPs - FrameworkFeatures of ESTPs - Framework

Environmental Protection Administration (EPA) - Mapping out master plans- Providing incentives

Environmental Protection Administration (EPA) - Mapping out master plans- Providing incentives

County Government- Providing land - Constructing ESTP infrastructure - Marketing & promotion

County Government- Providing land - Constructing ESTP infrastructure - Marketing & promotion

Environmental Science and

Technology Park

Authorized by EPA of ROC on 2003/03/11

#0920017748

- Usher in expertise and capitals

- Develop new markets

- High-value products - Advanced technologies- Zero/little emission

Components in ESTP- Mass Production- Research and Development- Support Facilities

Components in ESTP- Mass Production- Research and Development- Support Facilities

- Balancing production, life and ecology- Transforming into new cities and towns

Secondary(Wastes)

Resources

Old citiesand towns


Kaohsiung and HualienKaohsiung and Hualien ESTPs ESTPs

◎ Location: Gangshan Benjhou Industrial Park, Kaohsiung County

◎ Area: 40.11 ha◎ Condition of Site: Developed◎ Status of ESTP: Started investor a

pplication and review process in July 2003

◎ Location: Fengling Industrial Park, Hualien County

◎ Area: 22.01 ha◎ Condition of Site:Under developm

ent◎ Status of ESTP: Scheduled to start

construction in June 2004Hualien

Kaohsiung

ESTP (Eco-Park) LocationsESTP (Eco-Park) Locations


Located in a Located in a developeddeveloped industrial park industrial park equipped with sound infrastructure and equipped with sound infrastructure and utility serviceutility service

Situated within a Situated within a strategicstrategic industrial zone industrial zone with high concentration of metal (steel), with high concentration of metal (steel), petrochemical, electronic etc. industriespetrochemical, electronic etc. industries

Intending to develop an Intending to develop an eco-industrialeco-industrial complex serving above industriescomplex serving above industries

Kaohsiung ESTPKaohsiung ESTP


Industrial parkIndustrial park underunder developmentdevelopment

Area known forArea known for mineralmineral (graphite, cement, etc.) and(graphite, cement, etc.) and agriculturalagricultural industriesindustries

Intending to develop aIntending to develop a resource recoveryresource recovery circle circle and aand a life sciencelife science center center with focus on renewable with focus on renewable resources and energy and resources and energy and bio-agricultural industrybio-agricultural industry 。。

ESTP

Hualien ESTPHualien ESTP


Strength of Taiwan - Statistics Strength of Taiwan - Statistics

Area : 36,000 kmArea : 36,000 km22

PopulationPopulation ︰︰ 23 million23 million Major Economic IndexesMajor Economic Indexes ︰︰

Unit:%

Economic Growth Rate (Real GDP) 3.54

Unit:US$ billion

Gross National Product (GNP) 288.9 Gross Domestic Product (GDP) 281.5 Exports 130.6 Imports 112.6 Approved Investment by Overseas Chinese 0.044 Approved Investment by Foreigners 3.227 Foreign Exchange Reserves (Jan. 2003) 164.84 Balance of Payments 33.66

Unit:US$ dollar

Per Capita GNP (2002) 12,900


Strength of Taiwan 　• Ideal for Cooperative Investment and Trade

- government quick to remove investment barriers

and create freer market

- abundant capitals available while Taiwan

ranks among top three in foreign reserves

- high competitiveness backed by strong economy

and high-tech competence

- open domestic monetary market policy making

capital and funding arrangement much easier for

foreign business to operate internationally


Strength of Taiwan (cont’d) 　• Strategic Location

- an operational hub in Asia-Pacific Region

. well-developed infrastructure

. convenient transportation system

. fully functional ports and harbors

. free-flow customs system

- an ideal base to access market in Asia

. overwhelming business network tapping into

surrounding market


Strength of Taiwan (cont’d) 　• Credible Business Experience in Asia

- one of the largest foreign investors in China and

many Southeast Asia countries

. familiar with local culture & business conducts

. proficient in managing local business networks

. technically competent and financially healthy

. enjoying handsome surplus in trading and

investment

- an ideal partner to do business in Asia

. pro-active, understanding, and flexible


Strength of Taiwan (cont’d) 　

• High Quality Human Resources

- wide range of skilled human power with potential

for global outreach

- rich brain power making local enterprises fully

competitive and in pace with international trend

and development


Incentive and Assistance Programs • Incentive Programs General: various tax breaks and exemptions provided for investments in Taiwan

ESTP subsidies: Land leasing: 50% of cost up to 2011

Production expenditure: 10% of capital and production costs

R & D expenditures: one-year project ; renewable for second year, if necessary

Research project: Maximum – US$ 150,000 per case Number of subsidized projects – 10 cases/ye

ar Pilot production:

Maximum - US$ 300,000 per case Number of subsidized projects – 5 cases/ye

ar


Incentive and Assistance Programs (cont’d)

• Assistance Programs

- providing assistance service on :

. marketing and sales

. securing of raw materials

. setting product standards and specifications

. preferential procurement of green products

- one-stop administrative service on :

. permit and license applications


　 Green Business Model

• Proven Development Experience - inherited successful experiences in establishing

traditional and high-tech industries in Taiwan

. example: Hsinchu Science-Based Industrial Park

. turning advanced technology into lucrative business

- realizing lucrative green business through ESTPs

. drawing international cooperation experience and

effective business mode as above

. ensuring “win-win” collaboration among partners


　 Green Business Model (cont’d) • Green Industry Development - green technology is needed to manage emerging

environmental issues, leading to growth of green

industry

- focus of green industry:

. cleaner production . resource recovery

. renewable energy

. strategic environmental technology

. wastewater recycling . soil remediation

. waste separation and regeneration


　 Green Business Model (cont’d) • Best Opportunity to Realize Green Industry - joining ESTPs in various forms

. independent investment

. technology transfer

. joint venture with Taiwan partners

- building a base in Taiwan for Asia operation

. capitalizing Taiwan’s strength in human power,

technical, marketing and financial aspects

. bringing in expertise and other resources to

realize high value-added eco-business


Summary

• Tremendous Potential and Advantages

- Taiwan: best partner for development of green

business in Asia

. rich capital . economic strength

. successful experience in international cooperation

in Taiwan, China and Southeast Asia

. abundance of human resources

. drive for globalization


Summary (cont’d)

• High Economic Power Engine

- Taiwan Government continuously introducing incentives,

removing obstacles and deregulating constraints to

encourage investments in Taiwan with access to Asia

- local economy reviving with increasing foreign investments

- all-out effort in implementing Eight New Industries

- determined to set up an exemplary green business model


Summary (cont’d)

• Best Timing for Cooperative Partnership

- joining ESTPs

. offering advanced environmental technology

. creating a green economic miracle together

- sustainable growth promised for

. innovative and entrepreneurial eco-business


WebsitesWebsites Ministry of Economic Affairs, ROCMinistry of Economic Affairs, ROC

www.moea.gov.twwww.moea.gov.tw

Industrial Development & Investment Industrial Development & Investment Center, Ministry of Economic Affairs, Center, Ministry of Economic Affairs, ROCROC www.idic.gov.twwww.idic.gov.tw

Environmental Protection AdministratiEnvironmental Protection Administration, ROCon, ROC www.epa.gov.twwww.epa.gov.tw


WebsitesWebsites

Enviromental Science and Technology ParkEnviromental Science and Technology Park

www.epa.gov.twwww.epa.gov.tw

Kaohsiung County GovernmentKaohsiung County Government

www.kscg.gov.twwww.kscg.gov.tw

Hualien County GovernmentHualien County Government

www.hl.gov.twwww.hl.gov.tw


Contacts

• Industrial Technology Research Institute • Dr. Chih C. Chao, Fellow and Senior Advisor

E-mail: [email protected]

Tel: 886-3-5916309 Fax: 886-3-5916310

• Environmental Protection Administration • Mr. Yein Rui Hsieh, Senior Specialist

E-mail: [email protected]

Tel: 886-2-2311-7722 ext. 2606 Fax: 886-2-2331-7741

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