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Decarbonising Europe’s chemicals industry
The chemical industry is the cornerstone of the EU’s economy, supplying the building blocks for more than 96 per cent of manufactured goods in the region. From electronics to pharmaceuticals to fertilisers, chemicals are everywhere. But this economic centrality comes with a climate cost. Chemicals are the EU’s third largest industrial emitter after steel and cement. The “mother of all industries” must address its climate impact, while ensuring it becomes safer for human and environmental health.
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Why is it important?
2nd
The EU is the world’s second largest chemicals producer after China
5%
The chemical industry accounts for five per cent of the EU’s greenhouse gas emissions, making it the third largest industrial emitter
1.2m
The chemicals industry provides 1.2 million direct jobs and a further 19 million across supply chains
96%
The chemicals industry underpins 96 per cent of manufactured goods in the EU
The Challenges
- Progress on chemical decarbonisation has been slow, in part because chemicals remain largely invisible to the public. While some progress has been made on plastic pollution and chemical safety, de-fossilisation must now rise on the agenda.
- To date, transformational change has been limited, however there is a significant opportunity for collective action through the development of a unified and shared vision for the future of the chemicals sector in Europe.
- The lack of effective and targeted regulatory action through mechanisms like the EU Emissions Trading System (ETS) and Carbon Border Adjustment Mechanism (CBAM) has limited industry progress in addressing its climate impact. Civil society is pushing for more chemicals to be included under CBAM and for full value chain accounting in the ETS, while ensuring the phase-out of free allowances is upheld.
- The EU can’t compete globally in producing in producing certain energy and feedstock-intensive chemicals. Clear policy support is needed to establish a roadmap for European industry while targeting efforts towards sub-sectors essential to the EU economy in line with a sustainable and just transition.
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Ways to get involved
Are you working to raise ambition on chemical decarbonisation via EU ETS and CBAM? We’re activating cross-sectoral voices and aligning with progressive private sector actors to protect climate measures from dilution.
Contact Nikolas for more.
Interested in ensuring decarbonisation is integrated into the EU’s Chemicals Industry Package? We’re collaborating with progressive allies to execute policy advocacy that aligns decarbonisation with wider human and environmental health objectives.
Contact Nikolas for more.
Want to help strengthen civil society behind a common vision? We’re working with influential European players to set collective targets supported by evidence-based transition pathways that bridge health and climate priorities.
Contact Emma for more.
