Taking on the important responsibility of decarbonizing the energy industry, CPC is committed to promoting the transition to net-zero emissions with great determination. Recognizing the risks and opportunities presented by climate change, CPC has established a Climate Change Response Team, integrating international management systems and the TCFD climate risk management framework. Guided by the three principles of "High-value Petrochemical, Low-Carbon Emission and Lean-Renewable Energy," CPC is executing a low-carbon and green energy transformation strategy, leading the development of various prospective R&D projects.
Initiatives include driving the development of LTO energy storage material technology, constructing smart and green refueling stations, and establishing an Advanced Catalyst Center. Additionally, CPC has implemented internal carbon pricing, actively seeking opportunities for carbon reduction and circular economy practices. Furthermore, CPC actively responds to environmental group demands by implementing conservation of the algal reef ecosystem in the third LNG Receiving Terminal. In addition, CPC will establish the first domestic Ecological Conservation Trust Fund to support various conservation actions, aiming to achieve a vision of ecological sustainability and economic progress, creating a win-win situation.
GHG Management
In response to the international trend of the mitigation of climate change, carbon reduction goal and enhance the competitiveness of the green economy, CPC has followed the national policy to set GHG reduction targets and continuously tracked emissions through GHG inventory. In line with the national long-term GHG reduction targets, CPC introduced the ISO 14064-1 GHG inventory system in 2004 to conduct annual GHG emissions inventory, which the refinery emissions are verified by third-party certified by the EPA. Based on which GHG reduction targets, GHG management plans are promoted to reduce GHG emissions.
As a support to the national carbon reduction goals laid up in EPA’s Greenhouse Gas Reduction and Management Act (GGRMA), CPC designated 2005 as the baseline year, in which it measured greenhouse gas emission at 11.58 million MT (carbon dioxide equivalent). CPC has since surveyed Scope 1 and Scope 2 greenhouse gas emission on a yearly basis, and made calculations by following EPA’s Greenhouse Gas Emission Coefficient Sheet for guideline, or using proprietary coefficients as a priority. GWP values are adopted according to EPA’s rules.
CPC greenhouse gas surveys are conducted using the operational control approach, and survey outcomes are presented in carbon dioxide equivalent term. Total greenhouse gas emission in 2022 had reduced by 106,000 MT carbon dioxide equivalent (CO2e) compared to 2021. This reduction was mainly due to the spread of COVID-19 since 2020 that decreased economic activities, for which CPC had adjusted its production strategies to accommodate the market’s demand. Greenhouse gas emission intensity had reduced for 3 consecutive years between 2016 and 2019, but the global spread of COVID-19 in 2020 led to the collapse of oil prices, causing full-year revenues to fall by 29% and emission intensity increased as a result. Greenhouse gas emission intensity in 2021 had already fallen by 13.6% compared to the previous year.
CPC has been supporting the government’s energy conservation policy and executing greenhouse gas emission controls intended for the nation’s energy and manufacturing sectors. Since 2005, CPC has implemented a multitude of production improvements and energy management solutions in an attempt to reduce emission, and in 2022, the organization committed NT$870 million into additional GHG reduction measures including procedure optimization, equipment renewal, and heat recycling/reuse that reduced carbon by 88,000 MT. Between 2005 and 2022, CPC accumulated energy savings totaling 984,000 kL of oil equivalent, which equates to 2.836 million MT of carbon reduction.Power consumption per unit of production was significantly improved in major production sites.
Energy and Resources Management
CPC consumes electricity, natural gas, steam, fuel gas, petroleum gas, and fuel oils. The total 2022 energy consumption was 107 million GJ, with the highest heating value from fuel gas. In addition, the 2021 renewal energy output of our petrol station PV systems totaled 10.849 million kWh, and were sold to TPC. The 2022 output of own production was about 161.57 million kL, with energy intensity at 0.662 GJ/kL, about 7.7% lower than that of 2021 at 0.611 GJ/kL. Being Taiwan’s largest oil and gas supplier, CPC supports the global low-carbon movement and takes pro-active steps to reduce carbon in line with the government’s net zero goal. Through import of carbon neutral LNG and implementation of related projects and measures, CPC contributes to the sustainability of the environment and continuity of future business activities.
CPC actively sources suitable land for the construction of solar power system. The Company invested NT$40.11 million into the development of photovoltaic technology in 2022, and by 2022, it had completed 248 photovoltaic (PV) sites with rated capacity of 12.518 MW (excluding 709 KW that were leased out) located throughout Taiwan and offshore areas, including the rooftops of fuel stations, oil supply centers, refineries, petrochemical plants, and rooftops of office buildings. These PV stations generated 13.519 million kWh of renewable energy in and most of which was sold to Taiwan Power Company. As of 2022, CPC had obtained renewable energy site certifications for 19 of its self-use PV sites and accumulated 4,796 renewable energy certificates. In the future, CPC plans to expand renewable energy capacity to 19.56 MW in 2023 (with early bird privilege) and to 25.2 MW in 2024 (estimated based on the progress of existing projects).
SDGs