[Project] Taiwan’s Net-Zero Transition — Reaching 100% E-Scooters Sales by 2040: Who are the Stakeholders and What do They Think?
This article marks the first collaborative project by TWYCC’s newly formed Medium Team in 2023. Its objective is to explore a climate-related local topic, analyze the viewpoints of various stakeholders, and subsequently present our own perspectives as young individuals. Specifically, this article seeks to understand the government’s policy regarding the promotion of electric scooters, as well as the perspectives of different stakeholders on this matter.
In January 2023, Taiwan has made its “net-zero emissions by 2050” climate goal a legal obligation after passing the Climate Change Response Act. To facilitate transitions within the country, a Pathway to Net-Zero Emissions, along with 12 Key Strategies, was announced last year, targeting various industrial sectors and aspects of daily life. Among the strategies, we are particularly interested in the transportation transition strategy promoting “Electric & Carbon-Free Vehicles”.
Although the transportation sector contributes a relatively small proportion (12.4%) of greenhouse gas (GHG) emissions in Taiwan compared to sectors like manufacturing (52.2%), we believe it is highly relevant to us, the younger generation. In comparison to other sectors, we actively participate in the transition towards low-carbon transportation by making choices such as using public transportation, embracing shared vehicles, or purchasing electric scooters.
Why Scooters?
Among the vehicles commonly used in Taiwan, we have a particular interest in scooters. In Taiwan, riding scooters is the most popular mode of transport. According to a survey conducted by the Ministry of Transportation in 2020, about one out of every three people chooses to use a scooter when going out, surpassing any other mode of transportation. The number of scooters in Taiwan also shows how people are highly dependent on them. With over 14 million scooters in Taiwan (almost twice the number of cars), there is an average of 1.2 scooters for every two people.
The government has set targets to achieve 35% of new sales of electrified motor scooters by 2030, 70% by 2035, and 100% by 2040. However, in a country where scooters play a significant role and a unique lifestyle and ecosystem have developed around them, the government’s ambition to transform the traditional scooter culture into a highly “electrified” one will require changes in the market, people’s habits, and transportation behaviors. Such changes may face resistance. Therefore, it is important to consider the stakeholders affected by these policy initiatives, understand their positions and thoughts: who are the stakeholders affected? What are their positions and thoughts? What obstacles might the government encounter? We will discuss these matters one by one and present our viewpoint at the end.
Stakeholders: the Government, the Scooter Industry
Since 2009, the Taiwanese government has already been implementing a subsidy policy to promote the purchase of electric scooters as a means to mitigate air pollution caused by fossil fuel vehicles. This issue gained further momentum when a ban on the sale of fossil fuel vehicles by 2035 was included in the Air Pollution Action Plan announced by the Executive Yuan (Cabinet) in 2017.
However, the 2017 policy faced backlash from the public and the fossil fuel vehicle industry. Many argued that the policy lacked adequate support for local motorcycle manufacturers and maintenance workers, potentially causing harm to the industry. Consequently, the government altered its stance significantly in 2019. Instead of insisting on a complete ban on fossil fuel motorcycles before 2035, the government provided subsidies for the public to replace old motorcycles with new ones, whether electric or fossil-fuel-powered, as long as the latter complied with the new emissions standards. Due to the new subsidy policy and reduced budget from the local government to support electric vehicles (EVs), the sale of electric scooters in Taiwan sharply declined in 2020.
Last year, in response to the international pressure for the net-zero emissions, the Taiwanese government has reiterated its goal of achieving a 100% market share of new electric scooters by 2040 in the net-zero strategies focusing on transportation. The new plan includes initiatives such as the promotion of EVs in the public sector, modifying subsidy measures, improving charging infrastructure, providing training for employees in the traditional fossil-fuel-powered motorcycle industry, and supporting domestic production of electric scooters.
Stakeholders: Local NGOs
After the government announced the draft of the “Electric and Carbon-Free Vehicles” Strategy, a public meeting was convened to gather thoughts and recommendations from environmental NGOs, industry associations, academia, and research institutions. Many concerns and recommendations were raised by the NGOs, including the need for the government to set specific targets to limit the total number of vehicles, the necessity to improve transportation infrastructure to reduce the use of privately-owned vehicles, the government’s plan to support the transition of the fossil-fuel-powered vehicle industry, and the possibility of subsidies for EVs for a longer period, among others.
Although EVs emit less CO2 than fossil fuel vehicles, the increased number of EVs will result in higher electricity consumption in a country. Electricity consumption also emits GHG depending on the share of energy sources used to generate electricity. As of 2022, Taiwan still relied on almost 80% fossil fuels (43.4% natural gas, 34.8% coal, 1.4% liquid fossil fuels) to power the grid, meaning that the grid still had a relatively high emissions factor (how many tCO2e GHG emitted per kWh of electricity) compared to places where less fossil fuel is used for electricity generation. Since it is currently unclear how fast Taiwan can increase its renewable energy share, some environmental NGOs believe that reducing the total number of vehicles and overall transportation usage might be the ultimate solution to reduce GHG emissions.
Stakeholders: the public
The government’s e-scooter sales targets cannot be achieved without the willingness of the public to purchase e-scooters. However, there is a gap between the government’s ambitious targets and the information received by the public. According to a market survey conducted by Yahoo in 2021, over 60% of respondents expects the e-scooter market to grow in six years, and 80% of people who plan to have a new purchase within the next three years will consider buying an e-scooter. Nevertheless, when asked about the inadequate information on e-scooters, nearly 50% responded with government subsidies, and 46% responded with the locations of charging stations.
Another survey conducted in 2021 by Smart Mobility Association Taiwan found a similar kind of information gap between the government’s policies and the public’s knowledge about them. More than 75% of respondents had “no idea” about the domestic GHG reduction targets set in the Climate Change Response Act (Article 4). However, after understanding the policy contents, more than 90% of respondents expressed support for the government’s promotion of green economy and green energy-powered transportation vehicles. These survey results indicate that more communications are needed between the government and the public to effectively implement the policies.
Summary and Our View
As of October 2022, statistics from the Ministry of Transportation and Communications show that the cumulative sales of electric motorcycles in Taiwan had reached 69,700, accounting for about 11.6% of the overall motorcycle market. Not only is there still a long way to the government’s targets by 2035 and 2040, but there are still unresolved concerns of different stakeholders regarding the policy which may pose challenges for its implementation.
To realize a future with carbon-free transportation, it is essential that the government addresses the stakeholders’ concerns as soon as possible. For instance, many members of the public are still waiting for a more e-scooter friendly environment to consider purchasing e-scooters. Therefore, it is important that the relevant infrastructure for e-scooters be ready soon, facilitating people’s decision to buy e-scooters. Additionally, the traditional motorcycle industry is facing an existential crisis and a “just transition” for the affected ones should not be ignored. Many businesses in this industry require support from the government to undergo transformations in their business models and skills. Furthermore, the total number of vehicles in Taiwan have been growing for nine straight years since 2013. To effectively reduce GHG emissions, the government needs to address the issue of limitless vehicle growth through measures such as setting clear restrictive policies on fuel-powered vehicles or restraining the total number of vehicles in Taiwan.
More communication between the government and different stakeholders is needed to address these challenges. The cooperation of different sectors and stakeholders are also necessary to innovate solutions for a carbon-free future. For instance, to reduce the usage of privately-owned scooters, a unique scooter-sharing economy has emerged in Taiwan as an alternative choice of transportation for the public. Moreover, as the sharing scooters in Taiwan are mainly electric, this solution could also give the public an opportunity to become more familiar with and embrace e-scooters as part of one’s lifestyle.
Finally, to ultimately reduce people’s reliance on privately-owned vehicles and encourage low-carbon transportation modes like walking and cycling, a “people-oriented” approach must be central to a city’s transportation planning. Shifting the focus from cars and motorcycles to people in a city’s transportation system can encourage “active mobility”, a method promoted by the World Health Organization professionals, which “includes walking and cycling as single trips or in combination with public transport.”
If Taiwan can offer a more pedestrian-friendly environment, sidewalks, bicycle lanes, and a more practical and convenient public transportation system, people will be more comfortable and willing to choose these climate-friendly transportation modes. This, in turn, could not only lead to a reduction in GHG emissions generated by privately-owned vehicles but also enhance people’s well-being by encouraging physical activity through active transportation options.
Authors: Ann Wu, Chao-Hsiang Chang, Regina Fang, Hui-Shan Hu, Lesley Chen
Proofread: Elias König
Editor: Shun-Te Wang and Ann Wu
