TAIPEI (Taiwan News) — German businesses operating in Taiwan want the government to increase its ambition in the transition to sustainable energy, business leaders said at the release of the German Trade Office Taipei’s 12th annual business confidence survey on Thursday (Feb. 22).
Erdal Elver, president and CEO of Seimens Taiwan, said he often discusses Taiwan’s goal of carbon neutrality by 2050 with Taiwanese business partners. “But the question is: is it enough?” he while presenting the results of the report.
“This is something that I believe we as German companies have set much more clear and ambitious targets than the Taiwanese companies.” The report showed that of the German businesses operating in Taiwan surveyed, 83% have made a formal commitment to sustainability, and 44% of them have already implemented some energy saving measures.
“2050 for me is not far away. I want to challenge my customers: Why don’t we try to do it earlier? Why don’t we try to do it faster?” Elver said.
Head of the German Trade Office Taipei Axel Limberg said German companies have made a “very clear commitment to achieve carbon neutrality of business operations, and the energy transition plays an important role in this.” He said the key message is that the path to carbon neutrality is about cooperation, not competition.
Axel Limberg presents the business confidence survey to Chern-Chyi Chen in Taipei on Thursday. (German Trade Office Taipei photo)
“German companies here are more than willing to cooperate and deliver the insights and know-how to overcome these challenges here in Taiwan,” Limberg said.
Taiwan’s Deputy Minister of Economic Affairs Chern-Chyi Chen (陳正祺) spoke at the opening of the release event for the economic forecast. “All the business leaders from Germany are very concerned about the energy transition,” he said.
Chen said that his ministry is committed to developing diverse renewable energy sources, and noted the planned increased investments in this area following the passing of the Renewable Energy Development Act last year. Chen said the ministry has “every intent” to work with German companies to develop sustainable energy sources.
Aside from the push for a faster sustainable energy transition, the report was generally positive about the business environment in Taiwan. “Even though 2023 was a challenging year, German companies remain optimistic about Taiwan’s and their own economic development in the years to come,” Limberg wrote in the survey’s foreword.
Erdal Elver and Axel Limberg discuss the results of the business confidence survey in Taipei on Thursday. (German Trade Office photo)
The report noted high confidence from German companies in Taiwan’s business environment, and that it remains an attractive investment destination. Compared to 15% in 2015, the survey showed that nearly 50% of German companies in Taiwan planned to invest in Taiwan in 2023, with investments in staff training and development taking priority.
The survey further recommended the Taiwan government address issues relating to energy security, improving foreign language skills, and fighting the ongoing skilled labor shortage. To address the latter point, more vocational training options at a non-university level were recommended.
Cross-strait tensions were described as a “major concern” for German companies in Taiwan in 2023. Just under 37% of the companies surveyed said cross-strait tensions have negatively affected their supply chains, and 40% expected future impacts on business operations.