“The Energy transition is not a challenge handled by one company, industry, or country alone; it requires collaboration, innovation, and long-term commitment.”
Chang-Ken Lee, CEO, Cathay Financial Holdings
For more than a decade, Cathay Financial Holdings has played a key role in shaping Taiwan’s energy systems. As one of the country’s leading financial institutions, it’s been part of establishing and scaling its maturing renewable energy sector.
Having achieved more than 50% renewable electricity use through its RE100 commitments, it’s now looking ahead to the next ambitious step – and starting to explore the role of 24/7 carbon-free energy as a way to enable further grid decarbonisation.
“Cathay Life joins the 24/7 Carbon-Free Coalition based on our belief in the importance of the energy transition. Through this participation, we hope to work with the initiative partners to explore local transition mechanisms, encourage broader corporate participation, and advance toward a lower-carbon power grid,” said a spokesperson for Cathay Life.
Supporting Taiwan’s renewables journey
Renewables have been a key focus for Cathay FHC for a long time, since Taiwan’s Renewable Energy Development Act came into effect in 2009. "We have seen Taiwan’s renewable energy industry grow from its early beginnings into an increasingly mature ecosystem, and helped build this momentum through financing early solar projects and being part of building Taiwan’s first offshore wind development.”
Cathay FHC is now keen to build on the knowledge gained from more than a decade of market development. Its decision to move toward 24/7 carbon-free electricity reflects its ambition to go even further.
“In 2022, we joined RE100 and rapidly increased our renewable electricity use, with more than half of our consumption in Taiwan now coming from renewables.” Reflecting on this milestone, Cathay FHC notes, “This was not only a milestone; it also prompted us to consider the next question: after companies progressively achieve RE100, what should come next?”
The answer for them lies in a move beyond annual emissions accounting. As Cathay explains, “We believe the answer is 24/7 carbon-free energy. Future energy transition is not only about increasing the percentage of green electricity used, but aligning it with a secure supply of carbon-free electricity in Taiwan.”
Shaping systems through collaboration and learning
Cathay FHC is still at the early stages of its 24/7 carbon-free electricity journey. Supported by partners in the 24/7 Carbon-Free Coalition, the company’s first steps will be to understand new approaches, identify gaps, and explore solutions suited to Taiwan’s unique market.
As Cathay explains, “It’s about finding ways to promote further local grid decarbonization and strengthen the resilience of Taiwan’s energy system.”
By directing capital toward carbon-free generation, energy storage, and grid infrastructure, the company is helping to drive change beyond its own operations. “Financial institutions' own emissions are relatively limited, but the influence they can exert through capital allocation is very significant.”
As the first financial institution globally to join the 24/7 initiative, Cathay sets out: “By taking the lead in exploring relevant 24/7 CFE mechanisms and models, we hope to gain knowledge and share it with our corporate clients.”
Building resilience
Cathay FHC sees 24/7 carbon-free electricity as essential to building a more resilient energy system in Taiwan. The company explains, “The future energy transition is not only about increasing the percentage of green electricity, but improving the stability and flexibility of energy systems through better storage, demand response, smart energy management, and diversified energy portfolios.”
By focusing on flexibility and diversification, Cathay is aligning its strategy with national priorities, helping to reduce reliance on imported fossil fuels while building a more stable energy system. Their approach is rooted in collaboration, recognising that “Climate risk is systemic by nature, and only through cross-industry and cross-market collaboration can the low-carbon transition truly be accelerated.”
By joining the 24/7 Carbon-Free Coalition, Cathay FHC continues to stand at the forefront of Taiwan’s energy transformation journey.
Climate Group’s 24/7 Carbon-Free Coalition brings together businesses to support how energy procurement is shaped, with peer networking, knowledge sharing and technical advice. Businesses leaders who act now will be better positioned to navigate market uncertainty and play a leading role in building a more resilient, future-ready global energy system.
Find out more about joining the Coalition here.
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