1. 1 Seminar on Eco-Park Business in Taiwan with Access to Asia Overview of Environmental Science and Technology Park (ESTP) Project in Taiwan Dr. Chih C. Chao, ITRI September 2003

2. 2 Contents 1. Introduction 2. Features of ESTPs 3. Strength of Taiwan 4. Incentive and Assistance Programs 5. Green Business Opportunities 6. Summary

3. 3 Introduction - Strategic Location of Taiwan

4. 4 Introduction 10-Year ESTP Project embarked by Taiwan to: - pursue the goal of sustainable development and globalization - develop a circular economy. inviting innovative and entrepreneurial eco- business worldwide to join. seeking cooperative partnership in: value-added resource recovery, advanced environmental technology and eco-industry

5. 5 Introduction (cont’d) 10-Year ESTP Project embarked by Taiwan to: - realize an opportunity of an exemplary green business model by:. pulling relevant expertise and capitals together on an international scale. building a base in Taiwan while accessing the Asia market with a strong local support

6. 6 Features of ESTPs - Origin Project Origin: - in line with world trend on sustainable development - making best effort to resolve urgent environmental issues - searching for ways and means to enhance green competitiveness - meeting current policy requirements:. air bubble management. water pollution fees. safe water supply. resource recovery act. nuclear-free country. zero waste disposal

7. 7 Features of ESTPs - Origin (cont’d) Project Origin: - above policy demands technology upgrade on:. air quality improvement. process wastewater recycling. desalination. renewable energy. waste separation. resource regeneration - need to develop a circular economy. triggering growth of green industry. expanding a global-oriented environmental market

8. 8 Features of ESTPs - Principles and Aims Principles: - symbiotic growth, resource sharing, information exchange and risk reduction Overall Aims: - seeking cooperative partnerships with world-class environmental companies - developing low-pollution and high value-added eco- business model - balancing production, living and eco-considerations

9. 9 Features of ESTPs - Layout Overall Layout: - consisting of :. mass production area. R & D area. support facility area. management center. education and exhibition center Eco-Engineering: - facility designed to ensure eco-friendly environment - park planned to ensure synergistic industrial clustering effect

10. 10 Features of ESTPs - Uniqueness Materials to be renewed/recycled - expected to amount to 2.5 million tonnes per year - providing a sound base for eco-industry operation Ushering cutting-edge environmental technologies Allowing international enterprises to : - establish a strong base in ESTPs - use Taiwan’s strong and influential economic link - further expand business to Asia region

11. 11 Features of ESTPs - Support Service Park Administration Center - one-stop service window. assisting permit and license applications. providing operations management service on: - information sharing - guided park touring - public education and communication - corporate image building

12. 12 Features of ESTP - Summary Environmental Protection Administration (EPA) - Mapping out master plans - Providing incentives Environmental Protection Administration (EPA) - Mapping out master plans - Providing incentives County Government - Providing land - Constructing ESTP infrastructure - Marketing & promotion County Government - Providing land - Constructing ESTP infrastructure - Marketing & promotion Environmental Science and Technology Park Authorized by EPA of ROC on 2003/03/11 #0920017748 - Usher in expertise and capitals - Develop new markets - High-value products - Advanced technologies - Zero/little emission Components in ESTP - Mass Production - Research and Development - Support Facilities Components in ESTP - Mass Production - Research and Development - Support Facilities - Balancing production, life and ecology - Transforming into new cities and towns Secondary (Wastes) Resources Old cities and towns

13. 13 Kaohsiung and Hualien ESTPs ◎ Location: Kangshan Penchuy Industrial Park, Kaohsiung County ◎ Area: 40.11 ha ◎ Condition of Site: Developed ◎ Status of ESTP: Started investor application and review process in July 2003 ◎ Location: Fonglin Industrial Park, Hualien County ◎ Area: 22.01 ha ◎ Condition of Site:Under planning ◎ Status of ESTP: Scheduled to start construction in December 2003 Hualien Kaohsiung Eco-Park Locations

14. 14 Located in a developed industrial park equipped with sound infrastructure and utility service Situated within a strategic industrial zone with high concentration of metal (steel), petrochemical, electronic etc. industries Intending to develop an eco-industrial complex serving above industries Kaohsiung ESTP

15. 15 Industrial park under development Area known for mineral (graphite, cement, etc.) and agricultural industries Intending to develop a resource recovery circle and a life science center with focus on renewable resources and energy and bio- agricultural industry 。 ESTP Hualien ESTP

16. 16 Strength of Taiwan Ideal for Cooperative Investment and Trade - government quick to remove investment barriers and create freer market - abundant capitals available while Taiwan ranks among top three in foreign reserves - high competitiveness backed by strong economy and high-tech competence - open domestic monetary market policy making capital and funding arrangement much easier for foreign business to operate internatioanlly

17. 17 Strength of Taiwan (cont’d) Strategic Location - an operational hub in Asia-Pacific Region. well-developed infrastructure. convenient transportation system. fully functional ports and harbors. free-flow customs system - an ideal base to access market in Asia. overwhelming business network tapping into surrounding market

18. 18 Strength of Taiwan (cont’d) High Quality Human Resources - wide range of skilled human power with potential for global outreach - rich brain power making local enterprises fully competitive and in pace with international trend and development

19. 19 Strength of Taiwan (cont’d) Sustainable Industrial Growth - semiconductor, electronic and photonics industries highly productive and competitive - actively developing Eight New Industries:. digital content. single-chip system. precision semi-conductor machinery. biotechnology. specialty materials. nano-technology. others

20. 20 Strength of Taiwan (cont’d) Sustainable Industrial Growth - drive for environmental improvement leading to eco-business opportunities for:. green supply chain. cleaner production. resource recovery. renewable resources and energy. sound water treatment. advanced environmental technology. cost-effective pollution control equipment

21. 21 International Competitiveness W Deep industrial base and strong vertical integration capability in the information and electronics industries High-quality skilled R&D personnel / Strong industrial research and development capability A corporate sector with a strong spirit of entrepreneurship and innovation, and experience in international competition A leading position in Asia in venture capital Complete information and communications infrastructure Complete harbor infrastructure and a central location at the hub of Asian transportation routes High extent of industrial computerization and digitization, appreciable trend toward knowledge and technology industries Taiwan’sAdvantages

22. 22 Incentive and Assistance Programs Incentive Programs - various tax breaks and exemptions provided for investments in Taiwan - those in ESTPs receiving further subsidies on:. land leasing and purchase. production expenditures. R & D expenses

23. 23 R & D Subsidy (50% of requested budget) One-year project ; renewable for second year, if necessary Research project: Maximum – EURO 125,000 per case Number of subsidized projects – 10 cases per year Pilot production: Maximum - EURO 250,000 per case Number of subsidized projects – 5 cases per year Incentives - Subsidies

24. 24 Related Statutes Enjoy the relevant benefits mentioned in the “Statute for Upgrading Industry”, “Air Pollution Control Act”, “Resources Recycling & Reuse Act”, and “Waste Disposal Act”. Incentives – Preferential Taxes Preferential Taxes Preferential Taxes Up to 2003-12-31, a newly incorporated company will be exempted from the profit-seeking-enterprise income tax for a period of five years from the date on which it begins to sell its product or render its services. Up to 2003-12-31, a newly incorporated company will be exempted from the profit-seeking-enterprise income tax for a period of five years from the date on which it begins to sell its product or render its services.

25. 25 Incentive and Assistance Programs (cont’d) Assistance Programs - providing assistance service on :. marketing and sales. securing of raw materials. setting product standards and specifications. preferential procurement of green products - one-stop administrative service on :. permit and license applications

26. 26 Green Business Opportunities Proven Development Experience - inherited successful experiences in establishing traditional and high-tech industries in Taiwan. example: Hsinchu Science-Based Industrial Park. turning advanced technology into lucrative business - realizing ESTPs by. drawing international cooperation experience and effective business mode as above. ensuring “win-win” collaboration among partners

27. 27 Green Business Opportunities (cont’d) Drive for Eight New Industries - concerted effort among industry/government/research partnership - emphasis on innovation - setting up R&D, incubation and business venture centers

28. 28 Green Business Opportunities (cont’d) Green Industry Development - green technology is needed to manage emerging environmental issues, leading to growth of green industry - focus of green industry:. cleaner production. resource recovery. renewable energy. strategic environmental technology. wastewater recycling. soil remediation. waste separation and regeneration

29. 29 Green Business Opportunities (cont’d) Best Opportunity to Realize Green Industry - joining ESTPs in various forms. independent investment. technology transfer. joint venture with Taiwan partners - building a base in Taiwan for Asia operation. capitalizing Taiwan’s strength in human power, technical, marketing and financial aspects. bringing in expertise and other resources to realize high value-added eco-business

30. 30 Summary Tremendous Advantages and Potential - Taiwan: best partner for development of green industry. rich capital. economic strength. successful experience in international cooperation. abundance of human resources. drive for globalization

31. 31 Summary (cont’d) Excellent Record of International Cooperation - a democratic, liberalized and free economy - HSIP etc. experience: a solid foundation on international cooperation on advanced technology - assurance of success of future cooperation

32. 32 Summary (cont’d) High Economic Power Engine - government continuously introducing incentives, removing obstacles and deregulating constraints to encourage investments - economy reviving with increasing foreign investments - implementation of Six-Year Development Plan - promotion of Eight New Industries

33. 33 Summary (cont’d) Accelerated Growth of Green Industry - green industry in Taiwan. stepping up technological, managerial and ecological aspects. growing compatibly with other industries - continuous growth of green industry. continuing its path of rapid growth. offering unlimited business opportunities

34. 34 Summary (cont’d) Best Timing for Cooperative Partnership - joining ESTPs. offering advanced environmental technology. creating another green economic miracle - sustainable growth promised for. innovative and entrepreneurial eco-business

35. 35 Websites Ministry of Economic Affairs, ROC www.moea.gov.tw Industrial Development & Investment Center, Ministry of Economic Affairs, ROC www.idic.gov.tw Environmental Protection Administration, ROC www.epa.gov.tw

36. 36 Websites Kaohsiung County Government www.kscg.gov.tw Hualien County Government www.hl.gov.tw

37. 37 Contacts Industrial Technology Research Institute Dr. Chih C. Chao, Fellow and Senior Advisor E-mail: ccchao@itri.org.tw Tel: 886-3-5916309 Fax: 886-3-5916310 Environmental Protection Administration Mr. Yein Rui Hsieh, Senior Specialist E-mail: yrhsieh@sun.epa.gov.tw Tel: 886-2-2311-7722 ext. 2638 Fax: 886-2-2331-7741