62 2024 TSMA cost deductions will fall within the compensation and subsidy category recognized by the EU, the exporters can not declare the carbon price due to effective pricing. However, according to the Taiwan MOENV’s guidelines on operating the GHG Management Fund, the levied carbon fees can support the regulated-controlled industries in applying relevant mitigation technologies and capacity building for further decarbonization efforts. Energy-intensive industries should evaluate potential expenditures on mitigation technology investments and energy efficiency enhancements, along with anticipating the trends of the carbon footprint of products, as part of the planning for future decarbonization pathways. Green competitiveness thinking in industrial operation strategies internationally Taiwan’s industries dominate primarily part of international supply chains, and the disclosure and requirements of carbon emissions will become crucial tasks for industrial operation development. In the future landscape of international trade competition, the focus will shift from the price orientation to a green competitiveness mindset with environmental conditions. In other words, products with lower embedded carbon emissions mean lower import carbon adjustment tariffs, which shows better product pricing competitiveness. With the demands for transparency on disclosed information, Taiwan’s cross-border trade may face increasing risks but decreasing flexibility. In response to different trade markets evolving different types of CBAM in the future, it will be essential to formulate next-stage strategies comprehensively. All trade measures like import quotas, anti-dumping duties, and CBAMs should be taken into account for optimizing response measures to ensure operational profits and marketing advantages. References • European Parliament. (2023). REGULATION (EU) .../... OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of establishing a carbon border adjustment mechanism. (2021/0214 (COD)). Retrieved from https://www.europarl. europa.eu/meetdocs/2014_2019/plmrep/COMMITTEES/ENVI/AG/2023/02-09/Formal_Consolidated_CBAM_ EN.pdf • Taiwan EPA. (2023). Climate Change Response Act. Available from Laws & Regulations Database of Taiwan https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=O0020098 • UNFCCC. (2015). Paris Agreement. (FCCC/CP/2015/10/Add.1). United Nations Framework Convention on Climate Change (UNFCCC) Retrieved from http://unfccc.int/resource/docs/2015/cop21/eng/10a01.pdf
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