"Trump's Withdrawal" - ESG Policies Remain Active Among Top International Enterprises
Although Trump stated his intention to withdraw from the Paris Agreement, most international enterprises no longer view climate policy as pressure, but as a source of competitiveness. According to Sustaihub's this article:
"Even if U.S. policies loosen, due to investment market and corporate autonomous target pressures, international supply chain demands continue to strengthen."
This means that enterprises advancing decarbonization and sustainability strategies don't need to wait for regulatory mandates, but do so for efficiency, reputation, investment attractiveness, and international market entry thresholds. For Taiwanese enterprises, the earlier they invest in carbon management and data management, the more advantageous position they can secure in the global green supply chain.
Presidential Directive: 2050 Net-Zero Target Unchanged, Trump's Policy Won't Affect Climate Commitment
On April 24, 2025, President Lai Ching-te publicly stated at the National Climate Change Response Committee: Taiwan's commitment to promoting 2050 net-zero transformation remains firm and will not waver even if U.S. policies undergo major changes.
This statement sends a clear policy signal to enterprises:
- Taiwan will continue to promote carbon fees, renewable energy, and climate information disclosure
- The government will guide industries toward low-carbon development with stable, forward-looking legal and technical foundations
- Enterprises that maintain a wait-and-see attitude will face dual pressures of institutional risks and transformation costs in the future
This declaration indicates that sustainability policy is no longer just an external response, but part of core decision-making and operational resilience.
"Carbon Sequestration Regulations" Coming Soon - Key Driver for Scope 3 Decarbonization
According to the Ministry of Environment's plan, the draft "Carbon Sequestration Management Regulations" will be announced in mid-2025, for the first time clearly regulating compliance thresholds, environmental assessment processes, and monitoring obligations for carbon capture and storage (CCS) technology, also establishing Taiwan's foundation for carbon removal systems.
The impact of carbon sequestration on enterprises extends beyond energy and raw material production, and may directly change supply chain carbon inventory structures:
Three Positive Effects:
- Lower Product Carbon Emission Factors: If high-carbon suppliers implement carbon sequestration, they can effectively reduce raw material carbon intensity
- Strengthen Scope 3 Carbon Inventory Foundation: Carbon sequestration data establishes monitoring, reporting, and verification (MRV) mechanisms, providing enterprises with credible decarbonization basis
- Expand Decarbonization Options: Besides energy conservation and green electricity procurement, enterprises can also evaluate carbon sequestration services as alternative pathways or supplementary measures, providing solutions for Scope 3 decarbonization issues that have troubled enterprises for a long time
Simply put, "carbon sequestration" is one of the core means for enterprises to respond to future global carbon border adjustments (such as EU CBAM) and net-zero targets.
The Changing Role of Enterprises on the Road to 2050 Net-Zero
Facing increasingly clear policies and maturing decarbonization tools, the role of enterprises in climate governance should shift from "passive compliance" to "active leadership." Especially as carbon sequestration regulations are about to take effect, enterprises can further consider the following strategies:
- Expand Low-Carbon Procurement: Include supplier sequestration capability in evaluation criteria
- Optimize Scope 3 Inventory Methods: Use "post-sequestration carbon emission factors" as the basis for carbon emission factors
- Establish Sequestration Cooperation Framework: Evaluate cooperation with energy or technical service providers for carbon sequestration investment
- Disclose Sequestration Strategy: Include carbon sequestration in ESG reports, SBTi pathways, or TCFD disclosure documents
For enterprises to maintain their lead in the future, it's no longer just about "disclosing quickly," but "governing deeply" - truly integrating technology, systems, and business models, transforming from policy responders to industry transformation leaders.
Conclusion: The Window of Transformation Has Opened, Now Determines Future Leadership
"Trump's withdrawal" will not end ESG; instead, it highlights that enterprises relying solely on policy drivers will miss the timing and potential benefits of proactive transformation.
Top international enterprises will demonstrate action capability and integration power during this critical period of "policy transition > tool activation > enterprise action," opening up home-field advantages in the next low-carbon competitive era.
Start early in carbon governance and data management by beginning with organizational carbon inventory! Click this link now to learn more about how enterprises can complete organizational carbon inventory with minimal cost and effort!
References:
- Trump Announces Withdrawal from Paris Agreement Again, Yet It's the Perfect Opportunity for Taiwanese Enterprises to "Overtake" Major Manufacturers? - Sustaihub, 2025/01/20
- Climate Act: 14 Sub-regulations Completed in Two Years, "Carbon Capture and Sequestration" Draft to Be Announced Mid-Year - Environmental Information Center, 2025/04/25
- President Lai: 2050 Net-Zero Transformation Target Will Not Change Due to U.S. Policy - CSRone, 2025/04/29
