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Historical Study of Climate Change

1.1  Climate Change in Current World

 

Carbon dioxide concentration has reached the highest level in 2 million years (NOAA), 2022; R. Lindsey, 2024), with Taiwan ranking 19th in the world for per capita carbon emissions (H. Ritchie and M. Roser, 2024; H. Ritchie, 2024), and the Taichung Power Plant’s global pollution impact (Monitor, 2023; J.-C. Chuang, 2023; Y.-C. Huang et al., 2020). Glaciers are retreating at the fastest rate in 2,000 years (IPCC, 2021), and Greenland’s ice melt alone could raise global sea levels by 7.4 meters ((NSIDC), 2023). By 2050, global warming is expected to exceed 1.5°C (WMO, 2025), putting 30% of species at risk of extinction (IPCC, 2022; IPCC, 2007). Extreme heat events are intensifying (IPCC, 2021), sea ice extent has dropped to the lowest in 1,000 years (IPCC, 2021), and the distribution of droughts and heavy rainfall is becoming more polarized (IPCC, 2021). Marine heatwaves and intense rainfall are increasing in frequency and strength (IPCC, 2021; IPCC, 2023), while ice sheet collapse and changes in ocean circulation accelerate (IPCC, 2021; P. Ditlevsen and S. Ditlevsen, 2023; IPCC, 2021). Sea level rise is now at its fastest pace in 3,000 years (IPCC, 2021), with island nations such as Tuvalu already disappearing (NASA, 2023; Trade, 2023; Australia, 2023; Reuters, 2025). Together, these facts highlight the urgent and undeniable reality of climate change, underscoring the need for immediate global action.

 


 1.2   Global Temperature Goal

 

Global mean surface temperature has risen steadily since the late 19th century, accelerating after the Second Industrial Revolution and the large-scale use of electricity. Observations show an increase of over 1.0°C above pre-industrial levels, with the period 2006–2015 significantly warmer than 1986–2005. Current warming exceeds the natural Holocene range, and IPCC projections indicate further increases driven by human activities, underscoring the urgent need for global climate action.

 

Chart 1 12 15 23

To limit the global average temperature rise within 1.5°C, the Intergovernmental Panel on Climate Change (IPCC) uses Representative Concentration Pathways (RCPs) to model possible greenhouse gas emission trajectories. These scenarios illustrate how different levels of human-induced emissions influence long-term warming. Achieving the 1.5°C target requires ambitious reductions: global emissions must decline by 40–70% compared to 2010 levels by 2050 and reach net zero or even negative levels by 2100. Among the RCPs, only RCP2.6 aligns with the 1.5°C pathway, demanding rapid decarbonization and large-scale deployment of negative emission technologies, while higher emission scenarios such as RCP4.5, RCP6, and RCP8.5 would result in significantly greater warming between 1.7°C and more than 5°C. This underscores the urgency of immediate and sustained global action to achieve deep emission cuts and transition toward a net-zero future.

1.3   7 Main Green House GAS

The seven greenhouse gases with the greatest impact on global warming are carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF₆), and nitrogen trifluoride (NF₃) (IPCC, 2006; IPCC, 2019; EPA, 2022). CO₂ primarily comes from burning fossil fuels, wood, and waste, as well as deforestation (EPA, 2022). CH₄ is released during coal, oil, and natural gas production and transport, biomass burning, livestock digestion, rice cultivation, and landfill decomposition (EPA, 2022). N₂O emissions are linked to fossil fuel combustion and fertilizer use (IPCC, 2019; EPA, 2022). HFCs and PFCs are generated in semiconductor and electronics manufacturing, with HFCs also serving as major refrigerants (IPCC, 2006; EPA, 2022). SF₆ is used in the semiconductor and power industries as an insulating gas and in fire suppression (IPCC, 2006; EPA, 2022), while NF₃ is used in producing LCDs, solar panels, and small electronic circuits (IPCC, 2006; EPA, 2022). To compare their climate impact, all are measured in carbon dioxide equivalent (CO₂e) based on their global warming potential (IPCC, 2006; IPCC, 2019).

 1.4  Global Climate Negotiations

Global climate negotiations have progressed from early environmental awareness in the 1972 Stockholm Declaration and the creation of UNEP, to the establishment of the IPCC in 1988 and the adoption of the UNFCCC in 1992. The Kyoto Protocol in 1997 introduced binding emission targets and market mechanisms, while the 2015 Paris Agreement marked a turning point with universal commitments to limit warming to well below 2°C and pursue 1.5°C through nationally determined contributions. More recent developments, including the EU Green Deal, taxonomy and disclosure regulations, COP26’s net-zero pledge by 2050, and the introduction of the Carbon Border Adjustment Mechanism, highlight a shift toward comprehensive climate governance that integrates emissions reduction, sustainable finance, and global accountability.

 

Global climate negotiations have progressed from early environmental awareness in the 1972 Stockholm Declaration (Nations, 1972) and the creation of UNEP (IPCC, 1988), to the establishment of the IPCC in 1988 (Nations, 1992) and the adoption of the UNFCCC in 1992 (Nations, 1997). The Kyoto Protocol in 1997 introduced binding emission targets and market mechanisms (Unknown, n.d.), while the 2015 Paris Agreement marked a turning point with universal commitments to limit warming to well below 2°C and pursue 1.5°C through nationally determined contributions (Union, 2019). More recent developments, including the EU Green Deal (Union, 2020), taxonomy and disclosure regulations (Nations, 2021), COP26’s net-zero pledge by 2050 (Union, 2022), and the introduction of the Carbon Border Adjustment Mechanism (Union, 2023), highlight a shift toward comprehensive climate governance that integrates emissions reduction, sustainable finance, and global accountability.


Global Climate Change International Negotiation Timeline

Year

Conference / Document

Key Content

Notes / Impact

Ref.

1972

Stockholm Conference

Human Environment Action Plan

Establishment of the United Nations Environment Programme (UNEP)

(Nations, 1972)

1988

Establishment of IPCC

Intergovernmental Panel on Climate Change (IPCC)

Provided scientific foundation for climate negotiations

(IPCC, 1988)

1992

United Nations Framework Convention on Climate Change (UNFCCC)

Established a global framework for climate action

Adopted at the Rio Earth Summit

(Nations, 1992)

1995

COP1 (Berlin)

First Conference of the Parties (COP), established the COP mechanism

Initiated annual climate negotiation meetings

(Nations, 1992)

1997

COP3 – Kyoto Protocol

Introduced three mechanisms: Clean Development Mechanism (CDM), Joint Implementation (JI), International Emissions Trading (IET)

Binding emission reduction commitments for industrialized countries (2008–2012)

(Nations, 1997)

2012

Kyoto Protocol Extension

Second commitment period (2013–2020)

Extended during the Katowice Climate Conference (COP24)

(Nations, 1997)

2015

COP21 – Paris Agreement

Global target: limit temperature rise to well below 2°C, pursue efforts to limit to 1.5°C; countries submit Nationally Determined Contributions (NDCs)

Became the main post-2020 climate accord

(Nations, 2015)

2018

EU Sustainable Finance Disclosure Regulation (SFDR)

Requires financial institutions to disclose sustainability risks

Strengthened ESG responsibility in capital markets

(Union, 2019)

2020

EU Taxonomy Regulation

Established EU-wide sustainability classification standards

Provided consistent definitions for sustainable investment activities

(Union, 2020)

2021

COP26 – Glasgow Climate Pact

Reaffirmed net-zero emissions by 2050

EU launched the “Fit for 55” package: cut emissions by 55% by 2030 (compared to 1990 levels)

(Nations, 2021)

2021

EU Corporate Sustainability Reporting Directive (CSRD)

Mandated ESG disclosures for corporations

Replaced the previous Non-Financial Reporting Directive (NFRD)

(Union, 2022)

2021

EU Carbon Border Adjustment Mechanism (CBAM)

Carbon tariffs on imported carbon-intensive goods

Scheduled for full implementation in 2026

(Union, 2023)

2099

Global Temperature Rise +2°C

Climate change tipping point

Without major emission cuts, global warming may exceed Paris Agreement goals

 


 1.5  Global Green House Gas Emission’s Status

Global greenhouse gas emissions reached a record high in 2023, totaling 53 gigatons of CO₂ equivalent, an increase of nearly one gigaton compared to the previous year (Unknown, n.d.; UNEP, 2024). Fossil fuel–related CO₂ remains the dominant driver, accounting for almost three-quarters of total emissions (EPA, 2024).

When we look at where these emissions come from, the picture is highly concentrated. Just a handful of major economies — including China, the United States, the European Union, India, Russia, and Brazil — are responsible for more than 62 percent of global emissions (UNEP, 2024). China alone contributed over 13 gigatons, while India emitted nearly 3 gigatons (UNEP, 2024; JRC, 2024).

Growth trends are also concerning. China, India, Russia, and Brazil all reported increases, with India showing the strongest growth at around six percent (UNEP, 2024). Looking ahead, coal combustion in 2024 is expected to rise by nearly one percent, largely driven by continued demand in Asia ((IEA), 2024).

It’s important to highlight methane as well. In 2023, fossil methane emissions reached about 120 million tons. The United States leads methane emissions from oil and gas operations, while China is the largest emitter from coal mining ((IEA), 2024).

The challenge is clear. Under current policies, we are on track for around 3.1 degrees of warming (Nations, 2023). Even if all national commitments, or NDCs, are fully implemented, global warming would only be reduced to about 1.9 degrees, still far above the Paris Agreement’s 1.5-degree target (Nations, 2023). This underscores the urgent need for deeper and faster emission cuts across all sectors and regions.

 


 

1.6   Taiwan’s Climate Policy

1.6.1          Taiwan's Climate Legislation and Net-Zero Policy

According to the 2021 National Greenhouse Gas Emissions Inventory Report, Taiwan’s total greenhouse gas (GHG) emissions rose from 137.76 million metric tons of CO₂ equivalent (excluding removals) in 1990 to 287.06 million metric tons of CO₂ equivalent in 2019 (excluding removals) (EPA Taiwan, 1990). After accounting for a carbon sink of 21.44 million metric tons of CO₂ equivalent, the net emissions amounted to 265.62 million metric tons of CO₂ equivalent—a 3.6% decrease compared to 2018 and a 1.1% decrease compared to 2005 (EPA Taiwan, 1990). The data are illustrated in the figure below (EPA Taiwan, 1990).

 

1.6.2          2050 Taiwan to NetZero

 

Taiwan has set a clear pathway toward achieving net zero greenhouse gas emissions by 2050. This commitment is driven by three key forces: the global challenge of the climate emergency, the international trend toward net-zero carbon emissions, and the rise of green supply chains alongside carbon border taxation. To establish a legal foundation, Taiwan amended the Greenhouse Gas Reduction and Management Act on January 10, 2023, renaming it the Climate Change Response Act. The revised law sets a long-term national goal of reaching net zero emissions by 2050. Implementation will require joint efforts from all levels of government, citizens, businesses, and organizations, turning the climate crisis into an opportunity to unlock new business potential.

  

1.6.3          Accelerating Decarbonization and Enhancing Industrial Competitiveness

Measure

Legal Basis

Key Content

Ref.

Inventory and Verification

Articles 21 & 22

- Classification management - Enhance verification capacity

(UNEP, 2024)

Efficiency Standards

Article 23

- Product manufacturing process - Manufacturing or importing vehicles - New buildings

(UNEP, 2024)

Robust Carbon Trading Implementation

Article 25

- Encourage voluntary emission reduction offsets - Establish supply-demand mechanism for quota trading

 (UNEP, 2024)

Carbon Fee Collection

Article 28

- Promote decarbonization through economic instruments - Increase incentives via collection and utilization of fees

(UNEP, 2024)

Responding to International Carbon Tariffs

Article 31

- Establish specialized mechanism for international trade assessments - Require importers to declare carbon emissions of listed products - Offset based on emission differentials

(EPA, 2024)

Carbon Capture, Utilization, and Storage (CCUS)

Article 39

- Promote carbon capture technology development - Incorporate environmental impact into management

(JRC, 2024)

 

 

This infographic outlines six key strategies for accelerating carbon reduction and enhancing industrial competitiveness.

l   First, Inventory and Verification (Articles 21 & 22) introduces tiered management and strengthens verification capacity .

l   Second, Efficiency Standards (Article 23) set requirements for product production processes, manufacturing or importing vehicles, and new buildings .

l   Third, Stable Implementation of Carbon Trading (Article 25) encourages voluntary reductions and establishes demand-driven mechanisms for quota trading , (UNEP, 2024).

l   Fourth, Carbon Fee Collection (Article 28) uses economic tools to promote reduction and incentivizes emission cuts through fee collection and payment mechanisms.

l   Fifth, Responding to International Carbon Border Adjustment (Article 31) ensures compliance with global trade trends by requiring importers to declare carbon content and adjusting reduction quotas accordingly (EPA, 2024).

l   Finally, Carbon Capture, Utilization, and Storage (Article 39) promotes the development of negative-carbon technologies and incorporates environmental impact into management (JRC, 2024).

Together, these measures aim to strengthen Taiwan’s competitiveness in the global low-carbon economy.

 

What is Carbon Rights

2.1  Carbon Pricing and Policy Instruments

  • Carbon Pricing
    • A fundamental policy instrument that assigns an economic value to each ton of carbon dioxide equivalent (tCO₂e) emitted.
    • It aims to internalize the external costs of greenhouse gas emissions and incentivize reductions (ISO, 2018).
  • Carbon Fee (Articles in Taiwan’s Climate Change Response Act)
    • Imposed directly at the point of emission based on the source of carbon release.
    • For instance, Taiwan establishes a fee system analogous to air pollution charges, linking payments to fuel consumption rather than actual exhaust measurement ((BSI), 2017).
  • Carbon Tax
    • Levied on goods and services according to their carbon content, charged at the point of consumption.
    • Comparable to the “pay-as-you-throw” waste management system, in which greater waste generation or emissions result in proportionally higher charges ((SBTi), 2021).
  • Carbon Border Tax (Carbon Border Adjustment Mechanism, CBAM)
    • A trade-related climate measure designed to prevent carbon leakage and ensure fair competition.
    • The EU CBAM requires importers of carbon-intensive products to declare embedded emissions and pay an adjustment fee (IPCC, 2005).

 

2.2  Carbon Management Tools

  • Carbon Accounting
    Carbon accounting refers to the systematic process of quantifying greenhouse gas (GHG) emissions within an organization, supply chain, or project boundary. It is primarily used to identify carbon “hotspots” in corporate operations and to support compliance with climate-related disclosure frameworks such as the Greenhouse Gas Protocol and ISO 14064 (UNFCCC, 2022).
  • Carbon Footprint
    A carbon footprint measures the total GHG emissions associated with a product, service, or organization across its entire life cycle—from raw material extraction, manufacturing, distribution, and usage, to end-of-life disposal. Life Cycle Assessment (LCA) methodologies are widely employed to calculate carbon footprints, and standards such as ISO 14067 provide internationally recognized guidelines for product-level assessments (ISO, 2018).
  • Carbon Credit and Offset
    Carbon credits represent tradable certificates that denote verified reductions or removals of one metric ton of CO₂ equivalent (tCO₂e). These are generated through activities such as renewable energy deployment, afforestation and reforestation, and avoided deforestation projects. Carbon offsets allow entities to compensate for their emissions by purchasing such credits, thereby supporting global mitigation while enabling market-based mechanisms for decarbonization (ISO, 2019), (ISO, 2018).

  

2.3  Corporate Pathway Toward Carbon Neutrality / Net-Zero

Step

Description

Related Standards / Tools

1. Inventory

Quantify and report GHG emissions and product carbon footprints.

ISO 14064-1 (ISO, 2018), ISO 14067 (ISO, 2018), GHG Protocol ((WBCSD), 2004)

2. Target Setting

Establish reduction targets aligned with international frameworks.

Science Based Targets initiative (SBTi) ((SBTi), 2021)

3. Reduction

Energy efficiency, renewable energy use, energy management systems, process and equipment improvements, low-carbon buildings, green procurement, and circular economy.

ISO 50001 (ISO, 2018), BS 8001 ((BSI), 2017)

4. Removal

Enhance natural carbon sinks (forests, oceans, soils) and deploy artificial removal technologies (CCS, CCUS).

IPCC CCS Report (IPCC, 2005)

5. Offsetting

Compensate for residual emissions through voluntary domestic carbon credits or international carbon markets.

UNFCCC Voluntary Carbon Markets (UNFCCC, 2022)

 

The corporate pathway toward carbon neutrality and net-zero typically follows five major steps. The first step is inventory, in which organizations quantify and report their greenhouse gas (GHG) emissions and product carbon footprints based on standards such as ISO 14064-1 (ISO, 2018), ISO 14067 (ISO, 2018), and the GHG Protocol ((WBCSD), 2004). The second step is setting reduction targets, often aligned with international initiatives such as the Science Based Targets initiative (SBTi) ((SBTi), 2021), which provides a framework for near-term science-based commitments. The third step is reduction, achieved through energy management systems (ISO 50001 (ISO, 2018)), energy efficiency, renewable energy use, process and equipment improvements, low-carbon buildings, green procurement, and circular economy practices (BS 8001 ((BSI), 2017)). The fourth step is removal, which includes both natural sinks (forests, oceans, soils) and artificial carbon removal technologies such as carbon capture and storage (CCS) (IPCC, 2005). Finally, the fifth step is offsetting, whereby companies rely on domestic voluntary carbon credits or participate in international carbon markets (UNFCCC, 2022) to compensate for residual emissions that cannot be completely eliminated.

 

2.4  ISO 14060 Series – Levels of GHG Management

Understanding Different Types of GHG Accounting

Level ISO Standard Scope / Boundary Practical Applications Ref.
Organization-based ISO 14064-1:2018 Entire organization or department boundaries (e.g., factories, offices, subsidiaries)
  • Corporate GHG inventories
  • ESG and sustainability reporting
  • Compliance with national regulations (e.g., carbon fee/tax)
(ISO, 2018)
Project-based ISO 14064-2:2019 Specific projects or initiatives aimed at reducing or removing GHG emissions
  • Renewable energy projects
  • Energy efficiency retrofits
  • Carbon capture pilot projects
(ISO, 2019)
Product-based ISO 14067:2018 Life cycle of a product (raw materials → manufacturing → distribution → consumption → disposal/recycling)
  • Product Carbon Footprint (PCF) labeling
  • Sustainable procurement
  • Low-carbon product design and certification
(ISO, 2018)

Carbon Accounting (also known as carbon inventory) refers to the systematic process of collecting, calculating, and analyzing greenhouse gas (GHG) emissions data. It follows internationally and domestically recognized standards such as the GHG Protocol ((WBCSD), 2004), ISO 14064-1 (ISO, 2018), and the Environmental Protection Administration (EPA) Guidelines for GHG Emissions Inventory ((EPA), 2020), to ensure the accuracy and consistency of both direct and indirect emissions measurement. Through carbon accounting, organizations can identify their major emission sources and hotspots. The results may be presented as a basic GHG emissions inventory or as a comprehensive carbon accounting report that can be disclosed to stakeholders to demonstrate transparency, accountability, and commitment to climate action.

 

2.5  Greenhouse Gas (GHG) Emission Categories (Scope 1, Scope 2, Scope 3) (Part of ISO14064-1)

Scope

Emission Type

Sources

Scope 1: Direct Emissions

GHG emissions directly generated from company-owned or controlled operations.

Boilers , Company vehicles, Industrial processes, Chillers, Fire extinguishers, Land use

Scope 2: Energy Indirect Emissions

Indirect GHG emissions from the generation of purchased energy consumed by the organization.

Purchased electricity, Renewable energy

Scope 3: Other Indirect Emissions

All other indirect GHG emissions that occur across the company’s value chain (upstream and downstream).

Upstream transportation, Raw material procurement, Capital goods, Leased assets, Business travel, Employee commuting, Downstream transportation , Outsourcing, Product use, Investments & franchises , Customer visits

 

Greenhouse gas (GHG) emissions are categorized into three scopes.

This classification framework provides a comprehensive view of an organization’s total carbon footprint and is essential for carbon accounting and sustainability reporting ((WBCSD), 2004), (ISO, 2018).

2.6   Example for Scope 2

The calculation of greenhouse gas (GHG) emissions based on the emission factor method provides a standardized approach for organizations to quantify their carbon footprint. The general formula is expressed as:

where (E) represents the emissions from a specific source (measured in kg CO₂e), (A) denotes the activity data (e.g., electricity consumption, fuel use, production output), and (EF) is the emission factor corresponding to the activity, typically obtained from national inventories or international databases.

For example, the emissions from purchased electricity can be calculated as:

 If an organization consumes 1000 kWh of purchased electricity and the official emission factor for that year is 0.474 kgCO₂e/kWh, the resulting emissions are:

This approach is widely adopted in corporate carbon accounting and national greenhouse gas inventories as it ensures consistency, transparency, and comparability across reporting entities. It is also aligned with international standards such as the GHG Protocol and ISO 14064-1, which require organizations to apply activity data and appropriate emission factors to calculate both direct and indirect emissions ((WBCSD), 2004)–(FPT Information System, 2024).

2.7  Carbon Footprint (ISO14067)

A carbon footprint refers to the total greenhouse gas (GHG) emissions generated by a product or activity throughout its life cycle, including upstream and downstream processes, and their contribution to climate change. To ensure methodological rigor and data reliability, organizations apply internationally and domestically recognized standards such as PAS 2050, ISO 14067, and the EPA Guidelines for Product Carbon Footprint Management (FPT Information System, 2024)–(ISO, 2019).

This comprehensive life-cycle-based approach, usually expressed in CO₂ equivalent (kgCO₂e), enables organizations to identify environmental hotspots, quantify emission sources, and develop effective strategies for emission reduction across the full supply chain (ISO, 2019), (ISO, 2018).

 

Life Cycle Stages of Carbon Footprint

Step Life Cycle Stage Major Environmental Impacts Examples of GHG Emission Sources
1 Raw Material Acquisition
  • Resource extraction
  • Deforestation
  • Land degradation
  • Pollution
  • Energy use in mining and forestry
  • Fuel combustion for resource transport
2 Manufacturing Stage
  • Energy use
  • GHG emissions
  • Environmental pollution
  • Resource consumption
  • Electricity and heat for production
  • Industrial processes
  • Waste generation
3 Distribution Stage
  • Transportation impacts
  • Packaging
  • Energy use
  • Logistics-related emissions
  • Freight transport
  • Cold-chain logistics
  • Packaging disposal
4 Usage Stage
  • Overconsumption
  • Energy use
  • GHG emissions
  • Environmental burden
  • Social impacts
  • Household electricity use
  • Fuel consumption
  • Maintenance and servicing
5 Disposal Stage
  • Waste management
  • Incineration
  • Landfill
  • Recycling impacts
  • Methane from landfill
  • CO2 from incineration
  • Energy use in recycling

 

The life cycle carbon footprint of a product is typically assessed across five sequential stages. Step 1 (Raw Material Acquisition) involves resource extraction, deforestation, and related upstream environmental burdens (FPT Information System, 2024). Step 2 (Manufacturing) encompasses energy consumption, direct GHG emissions, pollution, and resource depletion within production processes (ISO, 2018). Step 3 (Distribution) covers emissions associated with logistics, packaging, and energy use across supply chains (ISO, 2019). Step 4 (Usage) accounts for operational energy consumption, consumer behavior, and social or environmental burdens (ISO, 2019). Finally, Step 5 (Disposal) addresses end-of-life pathways such as recycling, incineration, or landfill, where methane and CO₂ emissions represent significant contributors to the overall footprint (ISO, 2018).

By integrating these stages, the carbon footprint methodology offers a holistic view of climate impacts and provides a foundation for corporate sustainability reporting, eco-labeling, and low-carbon product design (FPT Information System, 2024)–(ISO, 2018).

 


 


Benefits for Stakeholders

Stakeholder Relevant Standard(s) / Framework(s) Application Key Benefits
Factory Operators ISO 14064-2:2019 (ISO, 2018) Verification and documentation of direct CO2 reductions from industrial operations
  • Scientifically recorded emission reductions (ISO, 2018)
  • Eligibility for carbon credit certification
  • Improved compliance and sustainability reporting
Fuel Producers & Airlines ISO 14067:2018 (ISO, 2018); ISO 14064-1:2018 (FPT Information System, 2024); ICAO CORSIA ((IATA), 2023) Conversion of captured CO2 into bio-oil blended into SAF, credited to both fuel suppliers and airlines
  • Reduced product carbon footprint (fuel companies) (ISO, 2018)
  • Lower organizational emissions (airlines) (FPT Information System, 2024)
  • Contribution to SAF blending targets under CORSIA ((IATA), 2023)
  • Accumulation of carbon credits
  • Reduced exposure to CBAM and carbon tariffs (CAA Taiwan, 2025)
Global Brands (e.g., Apple) ISO 14067:2018 (ISO, 2018); EU CBAM Regulation (CAA Taiwan, 2025) Integration of algae-derived SAF into logistics and transportation
  • Reduced transport-related emissions in product supply chain (ISO, 2018)
  • Lower declared carbon footprint of products
  • Eligible for carbon tariff credits under EU CBAM (CAA Taiwan, 2025)
  • Enhanced ESG performance and consumer trust

 

Expert Explanation: Benefits of Integrating Algae-Based CO₂ Absorption Technology Across Stakeholder Levels

  1. For Manufacturing Enterprises (Factory Operators)

The adoption of algae-based carbon capture enables factories to reduce their direct CO₂ emissions in a verifiable and traceable manner. The resulting emission reductions can be scientifically documented and certified according to ISO 14064-2 project-based accounting standards (ISO, 2018). This not only improves the environmental performance of industrial operations but also provides a transparent record of emission reductions that can be leveraged for compliance reporting, sustainability certifications, and participation in voluntary carbon markets.

  1. For Fuel Producers and Airlines

Unlike natural carbon sinks, which are often excluded from formal carbon credit calculations, captured CO₂ from algae can be converted into bio-oil and blended into Sustainable Aviation Fuel (SAF). Under this mechanism, oil companies can account for the reduced product carbon footprint using ISO 14067 (ISO, 2018), while airlines can include the reductions in their organizational carbon inventory under ISO 14064-1 (FPT Information System, 2024). These quantifiable reductions contribute to their cumulative carbon credit positions and, importantly, help lower exposure to carbon border adjustment mechanisms (CBAM) (CAA Taiwan, 2025) and comply with international aviation requirements such as ICAO CORSIA ((IATA), 2023).

  1. For End-Consumers and Global Brands (e.g., Apple)

At the consumer-facing end of the value chain, companies like Apple stand to benefit significantly from integrating algae-derived biofuels into their logistics processes. For example, if iPhones manufactured in mainland China are transported to Europe using shipping fleets powered by biodiesel blended with SAF derived from captured CO₂, the associated reductions can be reflected in the product carbon footprint of the iPhone itself (ISO, 2018). This provides Apple with a measurable reduction in transport-related emissions, enabling it to claim carbon tariff credits under the EU CBAM framework (CAA Taiwan, 2025) and improve ESG ratings, while simultaneously demonstrating climate leadership to environmentally conscious consumers.

Summary of Benefits

  • Factories: Verified emission reductions, ISO 14064-2 project documentation (ISO, 2018), potential carbon credit generation.
  • Fuel & Aviation Companies: Lower product and organizational footprints (ISO 14067 (ISO, 2018), ISO 14064-1 (FPT Information System, 2024)), compliance with CORSIA ((IATA), 2023), reduced carbon tariffs via CBAM (CAA Taiwan, 2025).
  • Global Brands & End Customers: Lower product footprints (ISO 14067 (ISO, 2018)), reduced carbon-related trade barriers (CBAM (CAA Taiwan, 2025)), improved ESG performance, enhanced consumer trust.

 


SAF Standard:CORSIA Introduction

4.1  CORSIA Standard

The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), developed by the International Civil Aviation Organization (ICAO), is the first global mechanism designed to regulate carbon emissions from international aviation. Launched in a pilot phase in 2021 and moving to full implementation in 2027, CORSIA requires airlines to monitor, report, and verify (MRV) their annual CO₂ emissions against a 2020 baseline (ISO, 2018). Any excess emissions must be balanced through the purchase of ICAO-approved carbon offset credits, which may come from certified projects such as reforestation, renewable energy, or methane recovery ((IATA), 2023). In addition, airlines can reduce their offsetting obligations by using Sustainable Aviation Fuel (SAF) that meets CORSIA’s life-cycle assessment standards, providing measurable reductions in net emissions (CAA Taiwan, 2025). The scheme is implemented in phases—voluntary participation from 2021 to 2026, followed by mandatory compliance from 2027 to 2035 for most member states, with limited exemptions for small economies (ISO, 2018). As a standard-setting example, CORSIA incorporates ASTM D7566 and ASTM D1655 specifications for SAF (Standards, 2025; ASTM International, n.d.) and applies ICAO’s MRV framework for emissions accounting. By establishing these requirements, CORSIA aligns with the Paris Agreement under the UNFCCC and ensures that international aviation does not remain an unregulated source of greenhouse gas emissions, while also supporting airlines in achieving near-term carbon reduction before new engine and aircraft technologies are widely available.

4.2   CORSIA and Taiwan’s Response

Drylab Experiment Image

Figure: CORSIA in TAIWAN

In Taiwan, the Civil Aeronautics Administration (CAA) has taken proactive steps to align with CORSIA. The CAA has issued SAF implementation guidelines and requires domestic airlines to conduct risk assessments before integrating SAF into their operations. Beginning in 2025, Taiwan plans to introduce SAF refueling at major airports, such as Taoyuan and Songshan, ensuring that fuels comply with ASTM/CORSIA-certified specifications. Furthermore, the CAA encourages airlines to progressively increase their SAF usage, aiming for at least 5% SAF adoption on international flights by 2030. Alongside SAF integration, Taiwan’s airlines will participate in the CORSIA carbon market, purchasing accredited offsets to cover residual emissions that cannot yet be eliminated through fuel substitution or efficiency measures.

By combining SAF deployment with CORSIA-compliant carbon offsetting, Taiwan is ensuring that its aviation industry not only meets global climate obligations but also positions itself as a regional leader in sustainable air transport.

 

4.3   SAF EXAMPLE ASTM D7566

In the application of Sustainable Aviation Fuel (SAF), ASTM D7566 serves as the globally recognized technical and scientific specification standard. It defines the physicochemical properties and testing limits of synthetic aviation fuels (Synthetic Paraffinic Kerosene, SPK). This standard ensures that SAF, when blended with conventional aviation fuels (Jet A / Jet A-1), continues to comply with the full set of performance requirements established under ASTM D1655. Different SAF pathways (such as HEFA, FT, ATJ, and SIP) are codified in the annexes of ASTM D7566, each with specific blending limits—for instance, HEFA-SPK, FT-SPK, and ATJ-SPK are permitted up to 50% blending, while SIP is restricted to a maximum of 10%.

Experimental evidence has quantified the impact of SAF blending on both physical fuel properties and environmental performance. Rosen et al. demonstrated that for every 10% increase in HEFA content, the fuel freezing point decreases by approximately 1.3 °C, aromatic content is reduced by ~1.8% (v/v), and net heat of combustion increases by about 0.08 MJ/kg(R. Dinkov, 2024). Similarly, Kurzawska-Pietrowicz et al. reported in turbine engine tests that a 50% HEFA-SPK blend reduces non-volatile particulate matter (nvPM) mass emissions by ~59% and particle number emissions by ~56% compared to conventional Jet A-1(A. Kurzawska-Pietrowicz, 2023). These results provide concrete numerical evidence of ASTM D7566-compliant performance, illustrating that SAF not only meets certification standards but also delivers measurable climate and air-quality benefits.

 


Table: SAF Testing Standards and Experimental Case Studies

Fuel Type / Pathway

ASTM D7566 Requirement

Case Study / Experimental Data

Quantitative Results

HEFA-SPK (Hydroprocessed Esters and Fatty Acids)

Max blend ratio 50%

Rosen et al. (2024) – fuel property analysis

+10% HEFA: freezing point ↓ ~1.3 °C; aromatics ↓ ~1.8% (v/v); net heat of combustion ↑ ~0.08 MJ/kg(R. Dinkov, 2024)

FT-SPK (Fischer–Tropsch)

Max blend ratio 50%

ICAO certification cases

Fully meets ASTM D1655 as a drop-in fuel(ASTM International, n.d.)

ATJ-SPK (Alcohol-to-Jet)

Max blend ratio 50%

ICAO / ASTM evaluations

Requires blending with Jet A-1 to maintain aromatic content within ASTM D1655 limits(ASTM International, n.d.)

SIP (Synthesized Iso-Paraffins)

Max blend ratio 10%

ICAO GFAAF data

Limited to 10% due to insufficient aromatic fraction(ASTM International, n.d.)

HEFA-SPK blends

Kurzawska-Pietrowicz et al. (2023) – turbine engine nvPM test

50% HEFA-SPK blend: nvPM mass ↓ ~59%; particle number ↓ ~56%(A. Kurzawska-Pietrowicz, 2023)

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