Taiwan lacks indigenous energy resources and imports 99% of its energy supply. This heavy energy-dependence represents a hidden threat for Taiwan's energy security and economic development. The most effective solution thus is to adopt an energy-conservation policy, similar to those successfully implemented in certain highly developed countries, such as the UK, the USA, Japan, and Germany. From the successful experiences of these countries, this study proposes a general mechanism of increasing energy efficiency by 2% annually, together with an executive master plan, followed by a scenario breakdown for energy-conserving policy in Taiwan. The feasibility of these proposals has been confirmed by the finding that their achievements in terms of energy saving and CO2 emission reduction conform to the goals of the "Taiwan National Energy Conference 2005". (C) 2008 Elsevier Ltd. All rights reserved.