The key messages of the “European Union Chemical Sector Transition” prepared by the Climate Bonds Initiative indicate:
•Chemicals are needed for more than 95% of the world’s manufactured goods, and their environmental impact based on a life-cycle approach is much higher than currently reported. The successful transition of the chemicals sector is important not only because of its strong interlinkages with the fossil fuel industry, but also in view of the major role that chemicals play in the transition of other industrial sectors and the economy overall.
•There is a small window of opportunity until 2030 to equip the European chemicals sector with the required green technologies to deliver net zero by 2050. Approximately 53% of chemicals primary production capacity in the EU27 will need reinvestment by 2030, requiring over EUR1tn of investment in the transition of the EU chemicals industry by 2050. To achieve this, chemical capital expenditure must increase by 50% over business-as-usual levels.
•European chemicals and other hard-to-abate sectors require a strong policy framework to enable key decarbonisation levers. Lack of progress in abating emissions in recent years underlines the urgency for specific action by chemical companies, policymakers, and investors.
Access the complete report here
