Status and Progress of EMA Development in Taiwan
Raymond Leung, ASEP - Asian Society for Environmental Protection, Thailand
Status and Progress of EMA Development in Taiwan

Raymond Leung Resident Director Environment and Development Foundation


The Business Council for Sustainable Development (BCSD) in Taiwan sponsored a pilot case study to assist one of its members, Everlight Chemical Industrial Co., in establishing an environmental accounting system. The Taiwan Institute of Economic Research (TIER) conducted a project for EPA on "Establishing a Model for Environmental Expenditures in Taiwan." through interviews with several companies. In 2000, EPA initiated a three-year project, entitled "Establishing Industrial Environmental Accounting Systems to Improve Integrated Environmental Policy Planning" conducted by Professor Hwa-rong Shen of National Chiao Tung University. Several companies successfully implemented their own environmental accounting systems by the end of 2001. These companies include UMC, the second largest semiconductor manufacturer in Taiwan, Yu Lon Motor Co. Ltd., an automobile manufacturer, and Cheng Loong Corp., a pulp and paper company. Currently, a framework for environmental accounting systems for use by businesses in Taiwan is being developed. In this framework, two different kind of accounting systems are proposed: the tree-type for small- and medium-sized enterprises (SMEs), and the matrix-type for large enterprises. The guidelines for implementing these systems were established by the end of 2002. In order to assess the feasibility of implementing these systems within industry, a questionnaire survey will be sent to selected large firms and SMEs. Barriers in promoting environmental accounting systems in Taiwan includes little incentive, fear of disclosure of data, lack of expertise, etc. Many companies expect government to provide training and financial support. Promotion activities and training of trainers were conducted in 2001-2003. Also, the Taiwan Environmental Management Accounting Network (Taiwan EMAN) was established in 2003.

Keywords Government incentive programs, environmental accounting, environmental cost accounting, environmental management accounting

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