Taiwan’s green industries generated over NT$500 billion (US$15.3 billion) in added value last year, accounting for 2 percent of GDP. The circular economy, renewable energy systems, and energy efficiency sectors made up nearly 73 percent of that total, underscoring that green growth is a powerful driver of national development.
Taiwan has released a draft 2050 Taiwan Circular Economy Roadmap, a blueprint to scale reuse, repair and recycling across industries and “become the hub of the circular economy in Asia,” Environment Minister Chi-Ming Peng said at the Asia Pacific Circular Economy Roundtable & Hotspot (APCER) on Oct. 22. The roadmap, slated for finalisation in 2026, seeks to double resource productivity, cut per-capita material use by ~30%, and lift the island’s circularity rate to 2.5x its 2020 level. It pivots policy from end-of-pipe waste management toward full resource circulation via eco-design, circular procurement and innovation.
“Circular economy is highly localised yet not something that can be done by one country alone,” Peng said, underscoring the push for deeper regional cooperation.
RELEVANT SUSTAINABLE GOALS
Why It Matters for an Export Powerhouse
Officials frame circularity as strategic for an island with limited natural resources and one of the world’s most export-dependent industrial bases. By looping materials, Taiwan aims to reduce reliance on imported inputs, ease waste-management pressures, and bolster the resilience of supply chains serving semiconductors, petrochemicals and machinery.
The government has expanded recycling rules, introduced extended-producer-responsibility (EPR) schemes, and funded pilots in remanufacturing, industrial symbiosis and eco-design—often in collaboration with multinationals facing mounting requirements to lower product footprints. Taipei argues these measures can give Taiwanese firms a competitive edge as buyers demand lower-carbon, resource-efficient goods.
Stephanie Downes, Asia-Pacific executive director at WRAP, called the roadmap “a new reference point for circular economy standards in Asia,” akin to the EU’s role but with a stronger emphasis on practical collaboration and technology sharing. Given similar resource constraints across Southeast Asia, she added, Taiwan’s benchmarks may be particularly relatable for ASEAN.
Linking the Roadmap to ASEAN Supply Chains
Many Taiwanese supply chains run through ASEAN. Officials say aligning circular standards—from waste segregationand cross-border recycling infrastructure to closed-loop production—could cut pollution and strengthen regional industrial ties. Since 2016, Taiwan’s New Southbound Policy has encouraged firms to assess market needs in Southeast Asia and invest in resource, capital and technology gaps, supported by TAITRA offices in eight ASEAN countries to open two-way investment and market access.
Alice Chou, vice president at the Taiwan Institute of Economic Research, cautioned that success abroad requires local adaptation. “There’s a need to adapt to local population needs and government policies,” she said, noting technology alone won’t guarantee uptake.
ASEAN Readiness: Vietnam and the Philippines
Even without formal mandates, Taiwan’s higher standards are likely to influence import-export ties. Vietnam, Taiwan’s third-largest ASEAN trading partner, recorded US$2.7 billion in bilateral trade in September 2025, with Vietnamese exports to Taiwan second only to Malaysia. Thanh Vinh Hoang, a UNDP Vietnam programme analyst, said Taiwanese firms operating locally could bring stricter corporate rules, nudging industries to raise practices. Hanoi’s January 2025 circular-economy action plan draws heavily on Taiwanese policies but remains focused on basic waste management. “Industries will react first – policymakers will follow,” Hoang said.
The Philippines may be better placed to collaborate after passing an EPR Act (2022)—currently focused on plastics and hampered by weak enforcement. Anna Reyes, executive director of Circulo and Sustina, said Taiwan’s roadmap is encouraging but questioned how easily policies can be replicated regionally, pointing to initiatives—like Taiwan’s e-waste recovery alliance—that rely on island-specific conditions.
Taiwanese officials stress the roadmap is not about imposing standards. Charles Huang, chairman of the Circular Taiwan Network, said the plan is built around cooperation rather than compliance, in contrast to EU rules ASEAN exporters must follow. Ying-Ying Lai, director general of the Resource Circulation Administration and a key roadmap contributor, echoed that approach: Taiwan will first refine domestic systems, then share experience with partners, calibrating cooperation to local logistics and existing circular facilities.
As Taiwan accelerates circular industries, the question for ASEAN is how quickly the region can align—from EPR frameworks and segregation systems to cross-border recycling—to unlock advantages in trade and supply-chain resilience. If Taiwanese suppliers and their ASEAN partners move in concert, officials argue, the payoff could be cleaner production, reduced material dependence, and stronger regional competitiveness—with the island’s roadmap serving as a pragmatic guide rather than a mandate.
