Global Supply Chain Green Drivers

Pressure from "Customer of Your Customer"

This is the strongest driver pushing FDI companies (China, Hong Kong, Taiwan, Singapore) to invest in rooftop solar, I-REC, and carbon reduction, because they export to markets tightening green compliance standards.

The EU, US, Japan, Australia, Korea, and the G7 all require supply chains to reduce emissions, use a minimum share of renewable electricity, and obtain ESG certifications.

EU CBAM (Carbon Border Adjustment Mechanism)

Officially Effective in 2026

Industries Currently Covered

  • Steel
  • Aluminium
  • Cement
  • Fertilizers
  • Electricity
  • Hydrogen

Additional Sectors (2028-2030)

  • Textiles
  • Plastics
  • Organic Chemicals

These are the largest FDI sectors from China/HK/TW in Vietnam → direct impact.

Requirements for EU Exporters

Report detailed Scope 1-2-3 emissions

Provide Product Carbon Footprint (PCF)

Demonstrate renewable electricity usage ratio

Reduce emissions following a 5-7-year roadmap

Without Clean Electricity:

50-100 EUR/ton CO₂
Carbon tax
5-20%
Cost increase
Risk of losing orders

👉 Rooftop solar + I-REC = fastest method to reduce Scope 2 and mitigate CBAM risks.

Pressure from Global Brands

Nike, Adidas, Uniqlo, IKEA, H&M, Puma, Decathlon...

Global brands have shifted from "encouraging" to "REQUIRING" suppliers to meet green standards.

20-50%

Renewable Energy Usage

Minimum renewable energy required

Certifications

LEED / EDGE / ISO 50001

ESG Reports

Full transparency on Scope 1-2-3

Common Requirements in RFQ/RFP

Supplier must install rooftop solar by 2026.

Minimum 30% renewable energy required.

I-REC is mandatory.

👉 Failing green standards = removed from supply chain.

United States – IRA & Decarbonized Supply Chain

Inflation Reduction Act and supply chain requirements

Requirements for US Exporters:

Increase renewable electricity annually

Reduce Scope 2 using PV/I-REC

Transparent carbon data

Use REC / I-REC

Summary of Green Supply Chain Drivers

Region/Brand Key Requirements
EU CBAM – Carbon reporting – Renewable electricity
USA IRA – Supply chain decarbonization
Japan GX League – Mandatory Scope 2
South Korea K-ETS – Green export chain
G7 Scope 1-2-3 reporting
Global Brands 20-50% renewable energy – I-REC

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