| Transition risks/opportunities |
Scenario analysis |
Impact on CSC operations |
Impact on the value chain |
CSC's response strategies |
Metrics and targets |
Transition risk:
R&D of carbon neutral technology of the steel industry |
- In the a low-carbon emissions scenario, the fossil fuel-reliant steel industry must maintain sustained investment in R&D, and application of low-carbon steel making technologies to achieve net zero objectives.
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- Investment in the R&D of new steelmaking technologies would lead to the increase of R&D costs.
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Taiwan
○●○ |
- Continue to conduct the coupling analyses of energy flow, carbon flow, material flow, and cost to advance carbon neutral pathways.
- Actively engage in industry-academia collaboration projects and focus on emerging low-carbon steelmaking technologies, including: charging of low-carbon ferrous burdens into BF, replacing coal injection with hydrogen-rich injection in blast furnaces, increasing the use of scrap steel to reduce hot metal consumption, and carbon capture and utilization.
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- Carbon emission ≦ 20.82 million ton CO2e in 2026.
- Carbon emission≦ 16.64 million ton CO2e in 2030.
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Transition risk:
Transition of raw materials
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- In the a low-carbon emissions scenario, high-quality iron ore resources, including reduced iron and steel scrap, may face intensified competition due to decarbonization plans of industry peers, potentially leading to price volatility in raw materials.
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- Various alternative low-carbon iron sources have been incorporated into the assessment scope of carbon-neutral technology planning; however, increasing use of these materials may lead to higher operating cost.
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Taiwan
●●○ |
- Examine various alternative low-carbon iron sources and include them into the scope of assessing CSC's carbon-neutral technology planning.
- Search for stable and cost-effective low-carbon iron sources.
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Transition risk:
Planning of low-carbon energy policy
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- In the low-carbon emission scenario, the demand for renewable energy may continue to grow in response to the long-term development of net-zero technologies in the steel industry.
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- If CSC continued to reduce purchased electricity through low-carbon energy, operational costs would increase.
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Taiwan
○●○ |
- Installed solar power systems within plants, making every effort to meet short-term and medium-term demands for renewable energy.
- Jointly establish an energy trading platform with major domestic companies to ensure renewable electricity sources and control costs.
- Continue to review long-term carbon reduction strategies for low-carbon energy demand.
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Transition risk:
Implementation of the carbon fee mechanism
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- CSC evaluates the impact of carbon fees based on not only “Fee-Charging Rates of Carbon Fees” announced by Taiwan's Ministry of Environment, but also international cases of carbon tax and carbon emission trading.
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- Products need to bear the cost of carbon emissions, resulting in the increase of operating costs.
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Taiwan
○●○ |
- Propose Self-determined Reduction Plans to secure eligibility for preferential rates to mitigate impacts (For more detail).
- Advance the development of emerging steelmaking technologies to reduce CSC's carbon emissions and the carbon cost of its products.
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Opportunities:
Reduce product energy consumption through smart processes and energy saving.
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- In the low-carbon emissions scenario, the steel industry will be required to achieve annual reductions in energy consumption.
- In the low-carbon emissions scenario, artificial intelligence (AI) can contribute significant decarbonization potential.
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- The emission reduction plans and smart transformation projects proposed by each department will serve to optimize operational efficiency and reduce operational expenditure.
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Taiwan
○●○ |
- Set energy conservation targets and develop related programs to continuously optimize energy efficiency.
- Continue to advance projects with carbon reduction benefits, including smart transformation, energy conservation, and equipment monitoring (e.g., Development of Digital Intelligent Temperature Control System for the Hot Rolling Mill Reheating Furnace project and the Sintering Intelligent Revitalization project). CSC plans to implement 21 smart steel plant initiatives.
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Starting from 2025
Annual average power saving rate ≧ 1.5% in 2026.
Annual average power saving rate ≧1.5% in 2030.
Annual average power saving rate ≧1.5% in 2035.
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Opportunities:
Provide high-strength structural steel to enhance climate resilience.
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- In order to adapt to recurring climate hazards, governments worldwide would continue to strengthen the resilience of public infrastructure.
- In the low-carbon emissions scenario, the government must incentivize procurement of environmentally friendly and sustainable products to facilitate the expansion of the green products markets.
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- Strengthen public infrastructure and national resilience projects in line with policies, leading to the increase of steel demand and CSC's revenue.
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Global
○●● |
- Continue to invest in the R&D of high-strength structural steel products, actively supporting national mid- to long-term infrastructure planning, including urban renewal and bridge reconstruction projects.
- Monitor green transition trends in domestic and international public works, entering the low-carbon construction market through the development of low-carbon steel and product certifications.
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- In 2026, advanced premium steel products and premium steel products are projected to account for 12.8% and 50.4% of total sales volume, respectively.
- In 2030, advanced premium steel products and premium steel products are projected to account for 20.0% and 51.2% of total sales volume, respectively.
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