The Internal Carbon Pricing Mechanism at Chunghwa Telecom
To meet its SBTi net-zero commitment and targets for "Net Zero by 2045," Chunghwa Telecom has been a pioneer in the telecom industry of Taiwan to implement the "internal carbon fee" system starting from 2022. The cost of carbon emissions is internalized, encouraging departments with financial incentives to take actions for energy conservation and carbon reduction. Through the internal carbon pricing mechanism, the allocation of resources towards low-carbon innovation is further strengthened. Climate change is factored in the strategic and financial planning decisions as well.
The Internal Carbon Pricing of Chunghwa Telecom at a Glance
| Item | Description |
|---|---|
| Year to Implement | 2022 |
| Carbon Pricing Type | Internal Carbon Fee |
| Price of Carbon Fee | NT$1,600 / tonne CO₂e (based on renewable energy market prices and international trends) |
| GHG Scope Covered | Scope 2 |
| Applicable Scope | Applicable to business decisions of all departments |
| Fee Payers | Each business unit, based on the respective annual carbon emissions |
| Fund Utilization | The "Internal Carbon Fee Fund" is established primarily for low-carbon innovation, energy efficiency management, renewable energy procurement, and various environmental sustainability projects |
Objectives for carbon pricing
The purposes for introducing this system include:
- • Promoting the enhancement of internal energy efficiency.
- • Encouraging departments to incorporate carbon costs and climate risk factors into decision-making.
- • Identifying and seizing low-carbon transition investment opportunities.
- • Responding to domestic/international carbon pricing and climate information disclosure requirements.
- • Assisting in achieving the carbon neutrality goals and SBTi decarbonization pathways of the Company.
- • Strengthening the integration of climate considerations into the corporate strategy and financial planning.
Utilization of the Internal Carbon Fee Fund
| Application | Description |
|---|---|
| Low-carbon Innovation | Driving the development of low-carbon technologies and the transformation into green services, such as the AI-powered energy-efficiency platform and smart energy management systems |
| Energy Efficiency Management | Installing high-efficiency air conditioning and energy-efficient lighting equipment and improving the energy efficiency of ICT equipment rooms |
| Renewable Energy Procurement | Signing long-term Power Purchase Agreements (PPAs) for a stable procurement of solar and wind power |
| Environmental Sustainability Projects | Executing biodiversity restoration, forestation for carbon sink, and other ESG projects |
Implementation Results (2023–2024)
- • Cumulative approved low-carbon and energy-efficiency proposals: 118
- • Total power saved: 79.48 million kWh
- • Carbon reduction performance: Approximately 39,350 metric tons of CO₂e
- • Compared to 2020 levels, the total Scope 1 and Scope 2 carbon emissions in 2024 decreased by 21%
- • Exceeded SBTi-validated targets for two consecutive years