From Trump's Paris Agreement Exit to Taiwan's 2050 Net-Zero Commitment: New Priorities for Supply Chain Decarbonisation

Updated on October 6, 2026. This update covers the effective date of the US withdrawal from the Paris Agreement and Taiwan's carbon storage regulations.

Trump Withdraws, but ESG Remains Active among Leading Global Companies

The US withdrawal from the Paris Agreement took effect on January 27, 2026 (UNFCCC country information), but most international companies have long viewed climate policy as a source of competitiveness rather than pressure. As Sustaihub explains in this article:

"Even if US policy eases, international supply chain requirements, driven by pressure from investment markets and companies' own targets,
continue to intensify."

This means companies do not need to wait for mandatory regulations to pursue emissions reduction and sustainability strategies; they do so for efficiency, reputation, investment appeal and access to international markets. For Taiwanese companies, investing earlier in carbon and data management offers an advantage in global green supply chains.

President Reaffirms 2050 Net-Zero Goal: Trump Policies Will Not Change Taiwan's Climate Commitment

On April 24, 2025, President Lai Ching-te publicly stated at the National Climate Change Committee: Taiwan's commitment to a net-zero transition by 2050 remains firm, and even major changes in US policy will not alter its national goal.

This statement sends companies a clear policy signal:

• Taiwan will continue advancing carbon fees, renewable energy and climate information disclosure
• The government will guide industries toward lower emissions through a stable, forward-looking legal and technological foundation
• Companies that continue to wait will face both regulatory risk and transition costs

The statement makes clear that sustainability policy is no longer simply a response to external developments; it is part of core decision-making and operational resilience.

Carbon Storage Regulations Are Now in Force

On August 25, 2026, the Ministry of Environment announced the Regulations Governing the Storage of Captured Carbon Dioxide, comprising 30 articles and effective from the date of publication. Monitoring is generally required for 20 years after well closure. If carbon dioxide leaks or conditions requiring injection to stop are met, operations must cease and authorities must be notified within 24 hours. The approval period is specified in each individual approval document, and monitoring obligations after well closure can only be lifted following review and approval. Sources: Articles 11, 19, 23, 24 and 30 of the regulations, Ministry of Environment publication announcement.

The impact of carbon storage extends beyond energy and raw material production; it may directly change how supply chain carbon inventories are structured:

Three Positive Effects:

1. Lower product emission factors: High-emitting suppliers that implement carbon storage can effectively reduce the carbon intensity of raw materials
2. A stronger foundation for Scope 3 carbon inventories: Monitoring, reporting and verification (MRV) mechanisms for carbon storage data provide companies with credible evidence of emissions reductions
3. More emissions reduction options: Alongside energy efficiency and green electricity procurement, companies can assess carbon storage services as an alternative pathway or supporting measure, offering a solution to the long-standing challenge of Scope 3 emissions reduction.

In brief, "carbon storage" is one of the core tools companies can use to address future global carbon border adjustments, such as the EU CBAM, and net-zero targets.

The Changing Corporate Role on the Road to Net Zero by 2050

As policy becomes clearer and emissions reduction tools mature, companies' role in climate governance should shift from passive compliance to active leadership. With carbon storage regulations now in force, companies can consider the following strategies:

• Expand low-carbon procurement: Include suppliers' carbon storage capabilities in assessment criteria
• Optimise Scope 3 inventory methods: Use post-storage emission factors as the basis for emissions calculations
• Establish carbon storage partnerships: Assess carbon storage investments in collaboration with energy or technology service providers
• Disclose carbon storage strategies: Include carbon storage in ESG reports, SBTi pathways or TCFD disclosure documents

Companies seeking to remain ahead must go beyond faster disclosure and pursue "deeper governance", integrating technology, institutional frameworks and operating models to move from responding to policy to leading industry transformation.

Conclusion: The Transition Window Is Open—Today's Decisions Shape Tomorrow's Leadership

Trump's withdrawal will not end ESG. Instead, it highlights that companies relying solely on policy to drive action will miss opportunities and potential benefits from proactive transformation.

Leading global companies will demonstrate their ability to act and integrate resources during this critical sequence of policy shifts, new tools and corporate action, positioning themselves strongly for the next era of low-carbon competition.

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References:

1. Trump Announces Another Paris Agreement Withdrawal: A Prime Opportunity for Taiwanese Companies to Overtake Major Competitors? — Sustaihub, 2025/01/20
2. 14 Subordinate Regulations Completed in Two Years under the Climate Act; Draft Carbon Capture and Storage Rules Planned for Mid-Year — Environmental Information Center, 2025/04/25
3. President Lai: The 2050 Net-Zero Transition Goal Will Not Change with US Policy — CSRone, 2025/04/29

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