Introduction of Taiwan IDB Project
The Industrial department bureau is under the Ministry of Economic Affairs of Taiwan, built in 1970. As the key sector in Taiwan, manufacturing sector development is the main focus of Taiwan IDB. The task of IDB include: 1. promoting a service-oriented manufacturing industry, an internationalized and high-tech services industry, and a specialty-oriented traditional industry; promoting the development of key industries; fostering investment and removing investment barriers; encouraging foreign enterprises to establish R&D centres in Taiwan; promoting sustainable development, etc..
On 2010 July IDB started a carbon footprint tuition project named "Manufacturing Industry Product Carbon Footprint Counselling and Promotion Program," and also launched a four-year (2011- 2014) strategic plan to help the Taiwan industry establish foundation capacities on product carbon footprint analysis.
The reason for the Taiwan IDB to carry out this project is as follow: The manufacturing industry in Taiwan is an exporting-oriented industry, however, most of the companies are SME which do not have enough skilful human resources and new technical knowledge, so the government supporting resources are important for these SME to build up their own capacity facing carbon footprint revealed requirements from international customers.
This manufacturing industry product carbon footprint counselling and promotion program aims to nurture carbon footprinting practices in Taiwan’s manufacturing industries, building up the mechanism for carbon footprint management, and finally encouraging low carbon product manufacturing.
The program contains four parts of work streams to support the manufacturers, including building infrastructure, pilot counsel, technique training, and promotion. IDB put in efforts into these four areas.
Evaluate firms with public and
given information Strike on the firms’ facility Buidling up the evaluation criteria Communicate with the firms
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The Influence Strategy
The key power for this program is the government-promoted action to establish industry normative legitimacy and coercive legitimacy which the firms are seeking for.
The IDB targets the supply network--focal company and its key suppliers as one unit, rather than the single focal firms, though IDB also provides counsel service to single plants/facilities as well.
The Process of IDB PCF Project
The IDB PCF program process is shown in Figure 4.19.
Figure 4.19. IDB PCF Program Process
Since the project is government-leading, companies have a stronger motivation to participate in the program. And the other motivation for firms to take part is due to the funding support provided for participants. After the initial spinning out, the project detail is uploaded online which could be accessed by public, including the focal firms and consultancy.
Except for the counselling plan, IDB has also promoted the training of PCF professionals. The “Train the trainer” courses were organized over 12 times with about a 200 audience at each. The participants consist of consultants, firms’ specialist, etc. These professionals contribute to the actual promotion effect of the PCF program, because the message of the industrial trends and the IDB free counselling service is brought back by these professionals. For the consultancy, they are motivated by the IDB’s
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funding support which could generate monetary benefits to their own business. So they would visit potential clients directly to persuade their engagement, for the mutual benefits of both.
The project accepts the application from the supply network units--focal firm and its key suppliers as a whole, with the application request from focal firm. IDB will form a technology board to evaluate these units by using the criteria of green capacity, supply network maturity, product groups and the brand name of the focal company. After the units were elected and implementation are rolling, monitoring of process and progress were in place as well.
The influence process is also summarized along the timeline as Figure 4.20.
Figure 4.20. Taiwan IDB PCF Project Influence Process
The Success of IDB PCF Project
After the implementation of the MIPCFCP project, PCR(Product Category Rules) of certain Taiwan manufacturing products are set up and especially an initial database of raw materials’ carbon footprint has been built up. In terms of the influence, the project has involved 22 supply network units (focal firm and 5-10 key suppliers) and 11 single plants till Dec of 2011. These units and plants cover a broad scope of industries including semiconductor manufacturing, optoelectronic, electronics, wires, paper milling textile metal producing etc. The total firms that are involved amount to 249. In the technique training part IDB have organized 5 training courses and certified 124 consultants on PCF. Among these firms there are well-known manufacturers such as TSMC, Tungho Steel, etc. The key resources that firms would like to fetch, via attending the programme, are the normative legitimacy--as being the qualified corporate on low carbon issue in the industry, and compliant to potential customer request, and the cognitive legitimacy as well--building the brand image as the leading corporate on low carbon issue. The coercive legitimacy, which is not directly present in this case because the PCF requirement is not in the legislation/regulation of Taiwan, however, is expected to be at hand in the longer future, since these companies attended this government-leaded programme.