I work for Taiwan Cement Corporation. Cement is an important CO2 producing sector in the world and TCC, as a large cement manufacturer plays a major role.

Why am I here speaking at the NetZero conference talking about CBAM, a Carbon Border Adjustment Mechanism issue? Because TCC also stands for “Total Climate Commitment” and “Total Care Commitment”. 

At TCC, we truly believe that greenhouse emissions cause dramatic climate change. TCC believes that climate change contributes to drastic environmental disasters across the world. I personally believe climate change is a core issue for the foreseeable future. The World Health Organization has called climate change the “single biggest health threat facing humanity.”

Carbon has forced us humans to re-understand our world.

In the prehistoric ages, mythology was the first tool with which human beings used to explain the world.

When humans were still in a state of scientific ignorance, Nature produced many violent storms of winds, snow, thunder and lightning, far exceeding human understanding. Mankind relied on myths, prophecies, and superstitions to settle down, to cope and to develop, so as not to be frightened by these enormous, powerful forces of Nature.

With the gradual development of civilization, the world slowly ushered in various stages of enlightenment. Human rationality opened up. But mankind was still constantly searching for what the best state of the world should be. From the philosophers of ancient Greece, Newton, Galileo, Leibniz and Adam Smith in the Enlightenment Age, to Einstein trying to explain the universe with his theory of relativity, many of the world’s phenomena could be explained with mathematics. formulas and logic. Human beings used scientific knowledge to observe, to structure, and to reveal the essence of Earth and ourselves.

When human beings rapidly expanded civilization, it also caused drastic changes in the natural environment. This was especially true after the Industrial Revolution which relied primarily on carbon as its main energy source. This was exemplified by the speed at which extreme weather events and the disappearance of species occurred, which normally would have taken millions of years of natural evolution. Through technological advances, we have caused these changes in a mere 100 years.

In our world, carbon has always been the most important foundation of life. It is also the culprit of rapid changes in the ecological environment today. It is the fourth most abundant element in the universe and the basic building block for almost all life forms on the earth. Human beings can even use carbon to date the geological and paleontological history of tens of millions of years ago. 

Through this, we were able to conclude that the carbon footprint of human beings over the past century had increased exponentially. The process of extracting hydrocarbons that were originally sealed underground and converting carbon into energy through combustion is the largest contributor to the climate disaster we face today.

Unlike many other things today, carbon has not been domesticated by humans. It has no borders, no constraints, it makes air and ocean water hot. It is creating innumerable occurrences of natural disasters.

In the past, humans used to explain the world through the lens of mythology, but now we do so through science. If human beings want to understand our planet and the need to stabilize and rectify the world, the keyword is carbon.

Carbon governance is an urgent task for all humans to undertake.

Indeed, the Carbon Genie has been released from Nature's magic lamp. In the process of the development of human civilization, the Carbon Genie granted our wishes, and even allowed modern society to live a life of excessive waste of natural resources. But now, the power of the Genie has become so ubiquitous, that it has reached the point where it is squeezing our existence. We must use our final wish to put the Carbon Genie back into Nature’s Lamp.

Only by relying on the industrial system, and on the abilities of the companies , can we concentrate on using our technology and change our way of life to help the world tame the Carbon Genie. The problem is that at the same time, in many of the world's corners, there is much political wrestling, or man-made inertia, which still keeps releasing new Carbon Genies.

Our main topic is the Carbon Border Adjustment Mechanism (CBAM).

CBAM is a proposed measure to impose tariffs on greenhouse gas emissions that occur beyond a country's borders. The purpose of such a tariff is to reduce greenhouse gas emissions and encourage all countries to adopt cleaner technologies and use cleaner energy sources.

The idea of a cross-border greenhouse gas tariff has long been talked about but only now put into practice. There are many debates surrounding this approach. Supporters argue that it would help create a level playing field for businesses across different countries and encourage a global shift towards more environmentally sustainable practices.

Opponents, on the other hand, argue that such taxes could create trade barriers and unfairly penalize less developed countries that still rely heavily on fossil fuels for its growth. They also raise concerns about the potential for such taxes to create tensions between nations.

We can't consider carbon tax as a regional norm. It must be universal. The flow of all carbon tax funds should not become a windfall for countries with the least carbon emissions, but should also extend past transnational boundaries and give timely support to regions and industries that most urgently need to improve carbon emissions.

In the past, trade tariffs between countries were mainly a bilateral matter; competition terms between companies were enterprise matters. Now, energy conservation and carbon reduction should not just be a matter of a country or an enterprise, it is an issue for the entire planet.

When we use carbon tax to formulate common rules, they can firmly make people from different countries, in different stages of development and different generations move in the same direction. Our generation must take responsibility for the situation left to us by previous generations, and we must also use the experience we have accumulated to develop a set of guidelines for future generations.

Overall, the debate surrounding cross-border greenhouse gas tariffs is complex, and there are no easy solutions to address the challenges of climate change. However, it is clear that the international community needs to work together to reduce emissions to ensure a more sustainable future for our planet. 

Unfortunately, this issue has often become a proxy for both domestic and international political disagreements. The geopolitical dimensions of the renewable energy transition must be considered. At the same time, there are prejudices based on self-interests of countries, as well as conflicts based on ideologies.

No issue is more important than carbon reduction or to find methods of storing carbon underground? We must do both - and as quickly as possible.

Carbon governance and carbon domestication are already the most important elements of the governance of the Earth. I believe that every industry that intends to reduce carbon will have to face a question: Will the work of the corporate world in the next 30 years only be as absurd and futile as Sisyphus, who, according to Greek mythology, kept pushing a giant rock uphill?

Still at this time, people, companies, countries and the European Union that govern the Earth can play a role like Atlas. To squarely shoulder the responsibility of the Earth, because it is clearly our responsibility to human beings.

How difficult is it to carry the earth on our shoulders? We won’t have Atlas to help us anymore. We must be our own Atlas. We, the eight billion people of Earth, must carry the weight of the world on our own backs for the sake of the future.

We are in a race against time to reach the 2050 net-zero carbon emission goal in the Paris Agreement. In the past 30 years, we have not moved forward very much, as there are still many negative forces.

Let us use the next 30 years to extend life on Earth for another 4.6 billion years.

Today's industries and companies committed to carbon reduction must face the pushback of this negative force. As the most responsible and forward-looking, regarding earth governance, the European Union must take the leadership role.

All along, the initiatives put forward by the EU have been the wiser and brighter voices of our conscience. It is also an organization that concerns the development and prosperity of all humanity. Just like how the anthem of the European Union, Beethoven's "Ode to Joy" depicts the universal harmony of human beings and our harmony with Nature. On many issues of Earth governance, the EU will be in the lead.

Today, human beings are faced with an undomesticated Carbon Genie, which is causing extreme environmental disasters. In addition, the world has experienced three years of pandemic, and economic activities are only slowly recovering. There is also an unprovoked war. The emissions from one day of the war is equivalent to a country's carbon emissions in a year. How can that be reversed?

When the European Union promotes CBAM and leads countries around the world to start reducing carbon emissions, we must also pay attention to the negative forces that offset our efforts. If they are not properly dealt with, the efforts will be canceled out.

In particular, industries around the world are still transitioning from their old carbon-based business models, and the development of renewable energies is just beginning. We are at a stage where it is still necessary to continue to invest tremendous time and resources. This requires global cooperation and careful coordination.

How do we transition to a productive economy that will satisfy global needs for economic growth without greenhouse gas emissions? It’s a multi-trillion dollar question. 

Building a low-carbon energy system and economy is a major infrastructure problem. The challenge is no longer to simply understand the science and the facts, it is to inspire action and face sacrifices. It will require commitment, dedication, compassion, and empathy for others. We have to find a way to care about future generations, and the millions of people who are already personally affected.

This is a race against time; companies are conducting a comprehensive inventory and calculation of carbon footprints, and reducing carbon emissions through alternative raw materials and renewable energy. Is it enough? At the same time, the International Conservation Association tells us that one species goes extinct every 20 minutes on Earth; according to statistics from the International Energy Agency, the world will reduce carbon emissions by 550 million tons through renewable energy in 2022. At the same time, a war that has lasted for a year may directly and indirectly cause more than 100 million tons of carbon emissions.

All this hard-working group of international organizations and corporations deserves is that the world gives us a 30-year period of no wars and dedicated cooperation to reduce carbon emissions.

The situation of enterprises and organizations engaged in carbon reduction work all over the world is similar, and it is bound to be difficult. It is like sailing in the vast ocean, not knowing the direction, not being able to rely on any previous experience. Our only direction is to look up to the North Star that guides us. It must be in the heart of every one of us to care for each other.

The Holy Grail has never been lost. When the world gives us a moment of calm, we will be closer to the possibility and hope of a Holy Grail that carries eternal life energy, enough to heal the earth's environment.

Our mission is to ensure that future generations can have a good standard of living, and that their natural environment is not destroyed.

In conclusion, we must put the Carbon Genie back into the Lamp. The implementation of a carbon tariff can contribute to reducing global greenhouse emissions, by leveling the playing field in global trade, promoting clean energy, and holding polluters accountable.

Last but not the least, I would like to share a few lines from a former schoolmate with you.

“We come after water, we come after land, we come after animals, we come after plants ... and we as the youngest relations on this planet have a duty to learn from everybody older than us.”– A-dae Romero-Briones

This speech was delivered April 27 at the 2023 EU-Taiwan Seminar on Carbon Border Adjustment Mechanism. Reprinted with permission.

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About the Author

Nelson An-ping Chang is the Chairman of Taiwan Cement Corporation, CEO of L’Hotel de Chine Corporation, Director of Taiwan Stock Exchange Corporation, Director of CTCI Corporation and Executive Director of O-Bank. He was also a representative for the R.O.C. at the APEC Business Advisory Council (ABAC).

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