ReportonAPECDigitalInnovationtoImplementSMEs’Low-CarbonTransformationAPECSmallandMediumEnterprisesWorkingGroupDecember2024APECProject:SME052023AProducedbySmallandMediumEnterpriseandStartupAdministrationMinistryofEconomicAffairsEmail:ischung@sme.gov.twTel:(886)223662237Fax:(886)223677484ForAsia-PacificEconomicCooperationSecretariat35HengMuiKengTerraceSingapore119616Tel:(65)68919600Fax:(65)68919690Email:info@apec.orgWebsite:www.apec.org©2024APECSecretariatAPEC#224-SM-01.4ContentsChapter1Introduction02I.DevelopmentTrendsofLow-CarbonTransformationwithintheAPECRegion04II.ChallengesforAPECEconomiestoConductLow-carbonTransformation06III.UtilizingDigitalToolstoAccelerateSMEs’Low-carbonTransformationChapter2BestPractices11I.Merck(DE)14II.VictorTaichungMachineryWorksCo.,Ltd.(CT)17III.LandseedInternationalHospital(CT)19IV.E.SUNBANK(CT)21V.CarbonAddons(INA)23VI.Nuvilab(ROK)Chapter3AnalysisandFindings27I.PatternsofLow-CarbonTransformationinSMEs28II.ComparisonofGovernmentDigitalToolsandEnterprises’Needs30III.TheImportanceofDigitalTransformationforInclusiveGreenTransitionChapter4ConclusionandRecommendations01102631Chapter1IntroductionI.DevelopmentTrendsofLow-CarbonTransformationwithintheAPECRegionChapter1|IntroductionIntroductionOverthepastdecade,globalfocusoncarbonreductionandsustainabilityhasgrownsignificantly,withgreeninitiativesandnet-zeroemissiontargetsgainingprominenceontheinternationalstage.The2021UnitedNationsFrameworkConventiononClimateChange(UNFCCC)formalizedthegoalofachievingnet-zeroemissionsby2050,promptingmanyeconomiestointegratecarbonreductionstrategiesintotheirdevelopmentplans.Thisshifttowardsustainabilityhasdrivennotonlypolicychangesbutalsothetransformationofindustrialstrategies,particularlyinsupplychaindecarbonizationandtheadoptionofcirculareconomymodels.Companiesalongthesupplychain,fromlargecorporationstoSMEs,arefacingincreasingpressuretoundertakegreentransformation.Atthesametime,mechanismsliketheEuropeanUnion'sCarbonBorderAdjustmentMechanism(CBAM)havehighlightedtheimpactofregulatorymeasuresonglobaltrade,increasingthepressureonSMEstotransitiontowardmoresustainablepractices.Withcarbonreductionrequirementsaffectingeverystageofthesupplychain,theimperativeforSMEstoadaptandcontributetothegreeneconomyisnowmorecriticalthanever.APEChastakenaleadingroleinadvocatingpoliciesandpromotingdevelopmentintheAsia-Pacificregion.In2020,theadoptionofthePutrajayaVision2040aswellasitsimplementationguidelines-AotearoaPlanofActionsettheaimforanopen,dynamic,resilient,andpeacefulAsia-Pacificcommunity.Buildingonthisvision,APECleaders02endorsedtheBangkokGoalsonBio-Circular-Green(BCG)Economyin2022.Thisapproachemphasizesinclusivity,empoweringMSMEsthroughESG(Environmental,Social,andGovernance)initiatives,BCGmeasures,andotherstrategiestoenhancetheircapabilities.Theseeffortsaimtodrivesustainabilityandfosterthedevelopmentofagreenglobalsupplychain.Thisyear,the2024APECSmallandMediumEnterprisesMinisterialMeetingStatementreiteratestheimportanceofadvancingtheimplementationoftheBangkokGoalsonBCGEconomybybuildingthecapabilitiesofMSMEsinsustainabilityandinclusionpractices.ThestatementprovidesguidanceforthegreenanddigitaltransformationofSMEs.Similarly,atthe2024APECEnergyMinisterialMeeting,theneedtoenhanceinvestmentsinsustainableinfrastructuredevelopmentandtopromoteandtakeadvantageoftechnologicalinnovationa...