KYOTO PROTOCOL TAKES EF-FECT

03/01/2005

---

The Kyoto Protocol took effect on 16 February 2005. Its main points include:

Controls on total emission quantities: During the period from 2008 to 2012, the quantities emitted of six greenhouse gases (GHGs) must on average be reduced to levels 5.2% below the quantities emitted in 1990.

Controlled gases: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride.

The Kyoto Protocol is likely to have far-reaching effects on industrial competitiveness worldwide, and a carbon control trading market will begin to take shape. Taiwan is not one of the 38 countries listed in the Kyoto Protocol, and therefore will not be under pressure to reduce emissions in the initial phase. However, because greenhouse gas emissions from Taiwan account for 1% of total global GHG emissions, and Taiwan ranks 22nd worldwide for such emissions, it may be listed in the next round of emission reduction targets.

In view of the Kyoto Protocol's entry into force, the Industrial Development Bureau will (1) help enterprises to establish certifiable international GHG management systems, (2) encourage en-terprises to introduce GHG emissions reduction technology and equipment, (3) set up a database of enterprises' GHG emissions, (4) set up a trading system for GHG emissions within Tai-wan, and (5) assist industries in implementing clean production.

In addition, the IDB will encourage industries to restructure themselves and promote the acceler-ated development of 10 major emerging indus-tries with low dependence on energy resources (information technology, telecommunications, semiconductors, pollution control, medical and health care, specialty chemicals and pharmaceu-ticals, aerospace, consumer electronics, high-performance materials, and precision ma-chinery and automation) by means of measures such as tax incentives, low-interest financing, and special assistance programs.