SBTi的現況、未來與挑戰
Current Status, Future, and Challenges of SBTi

Current Status, Future, and Challenges of SBTi

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Current Status of SBTi

 

The Science Based Targets initiative (SBTi) was jointly launched by the Carbon Disclosure Project (CDP), the United Nations Global Compact (UNGC), the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). It is the world’s first carbon reduction framework aimed at setting net-zero standards for corporations. SBTi’s three core objectives are a “carbon budget, an emissions scenario, and an allocation method.” These objectives are designed to provide companies with specific decarbonization pathways, helping them establish emission reduction targets aligned with the Paris Agreement goal of limiting global temperature rise to 1.5°C. SBTi adopts a scientific approach to achieve net-zero emissions, with specific goals including:

1. Phase 1: By 2030, companies must reduce emissions by more than 50%.

2. Phase 2: By 2050, companies must reduce emissions by more than 90%.

3. Phase 3: For residual emissions that cannot be eliminated, companies must offset them through permanent carbon removal and sequestration measures.

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Companies should follow specific reduction levels during the implementation of these targets, in addition to engaging in climate financing. They must first conduct a greenhouse gas (GHG) inventory as a baseline for the SBTi plan. After making a commitment, companies have two years to set concrete targets, which must be reviewed and adjusted every five years. The six SBTi review criteria are as follows:

1. Define short-term, mid-term, and long-term targets, with net-zero emissions required by 2050 (2040 for the power generation and shipping industries).

2. Set emission reduction scopes, covering at least Scope 1 and Scope 2 emissions.

3. Ensure the targets are aligned with the 1.5°C emissions reduction scenario.

4. Disclose the method of calculating Scope 2 emissions.

5. Reduce Scope 3 emissions following the GHG Protocol, especially if Scope 3 accounts for over 40% of total emissions.

6. Annually disclose GHG inventories and progress on emissions reduction.

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Future and Challenges of SBTi

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According to forecasts by Frost & Sullivan, the Asia-Pacific region is expected to become the fastest-growing carbon market globally over the next decade. By 2030, the region’s carbon market is projected to reach USD 38.7 billion, with an annual compound growth rate of 30.6%, significantly outpacing other regions. Factors driving this growth include China’s nationwide Emissions Trading System (ETS) launched in 2021, as well as the aggressive investments in green technology and renewable energy by Japan, South Korea, and China. Taiwan has also gradually introduced carbon reduction mechanisms, such as carbon pricing and green investment, encouraging companies and individuals to reduce carbon emissions.

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Currently, 102 companies in Taiwan have completed the commitment phase of the SBTi, with the majority coming from the financial and technology sectors. Of these, 43 have submitted scientific-based reduction plans. In August 2023, Taiwan officially announced the “Carbon Fee Tri-Law,” marking the beginning of the carbon pricing era. By 2030, it is expected to reduce CO2 emissions by 37 million metric tons, equivalent to 14% of 2005 baseline emissions. Carbon fees will be formally implemented next year to promote the low-carbon transition of businesses, along with supporting measures. Taiwan has also made significant progress in net-zero construction, achieving rapid growth in green building development and becoming one of the countries with the highest density of green buildings globally due to three key reasons:

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1. Taiwan was the fourth country to implement a scientifically quantified assessment system.

2. It developed the only independent assessment system applicable to tropical and subtropical climates.

3. Taiwan pioneered incorporating green building regulations into law, ensuring compliance for all new constructions.

 

As global demand for net-zero carbon emissions continues to rise, SBTi plays a critical role in guiding companies toward achieving their decarbonization goals. While some multinational corporations and financial institutions have withdrawn from their SBTi commitments, this highlights the pressure companies face when scrutinizing their foundational data. The sustainability transition must address green finance, innovative technologies, and energy emission management while maintaining transparency in carbon reduction amidst business expansion.

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SBTi Review and Summary

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​Despite these challenges, Taiwan has steadily introduced carbon pricing and net-zero building policies, providing economic incentives for businesses’ carbon reduction efforts and strengthening their competitiveness in international markets. If companies effectively leverage these policies and resources, they can not only present strong evidence of compliance with the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards but also meet SBTi targets. Looking forward, collaboration between the government and businesses to implement concrete decarbonization strategies, promote technological innovation, and increase financial investment will ensure Taiwan remains a leader in the global net-zero building market. In this way, Taiwan will make significant strides toward achieving net-zero emissions, contributing meaningfully to global climate action.

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