Cefic Launches its latest report: The Carbon Managers

9 December 2024 – Cefic, the European Chemical Industry Council, has released its latest report “The Carbon Managers: Modelling Possible Pathways for the EU Chemical Sector’s Transition Towards Climate Neutrality and Circularity with iC2050“.

Building on the Molecule Managers report released by Cefic in 2019, “The Carbon Managers” looks at “how” the transition to a climate-neutral and circular chemical sector can happen. Developed using Cefic’s iC2050 modelling tool, the report presents various data-driven and feasible scenarios towards a climate-neutral and circular chemical industry.

“The transformation journey offers an opportunity for the European chemical industry to realise its ambition of a circular and climate-neutral future. There is no single path forward. The Carbon Managers, the culmination of years of effort and expertise, highlights several pathways and complementary technologies and solutions that can be deployed. We hope it can empower all stakeholders to envision the various cost-effective possibilities ahead.”

Florie Gonsolin, Director Industrial Transformation Projects, Cefic

The iC2050 modelling tool covers over 70 technologies, 100 different materials, and 450,000 constraints and parameters. Thanks to this, the report offers a broad overview on:

• Several detailed scenarios, examining enabling conditions (electrification, hydrogen, carbon capture, biomass, recycling) and policy mandated targets;
• Circular solutions, emphasising the role that alternative feedstocks, such as recycled waste, captured CO₂ and biomass, as key carbon sources
• Economic insights on the resources and investments required for the transition.

The development of “The Carbon Managers” is the result of years of collaboration with leading experts, including Deloitte France, TNO, CE Delft, and ICIS. The findings of the report offer valuable insights for a wide range of stakeholders. These insights can help guide the European chemical industry’s transition, while safeguarding its competitiveness and strengthening Europe’s strategic autonomy.  

Although thorough and versatile, “The Carbon Managers” also reflects the complexities of the chemical industry’s journey ahead:

1. Climate neutrality and circularity demand an integrated approach, as there is no “silver bullet” solution. Electrification, bio-based feedstocks, chemical recycling, and carbon capture must work together, complementing each other.
3. Abatement strategies are interconnected. Limiting access to certain technologies, energy, or feedstocks puts added pressure on remaining options, requiring careful trade-offs.
4. The chemical industry is molecule-based and remains reliant on carbon. Ensuring access to alternative carbon sources is imperative for achieving climate-neutrality and circularity targets.
5. There is a key role for non-fossil carbon-based feedstock, but measures will only have positive climate impacts if the necessary enablers are in place
6. Competitiveness is not the primary focus of this report. Nonetheless, is a key pillar that will influence the sector’s ability to successfully transition. Achieving this transition will require considerable CAPEX and OPEX, and a clear business case is needed to attract investments in Europe.

We hope you find the report informative. If you have any questions or would like to receive updates on The Carbon Managers and the iC2050 tool, please contact: industrialtransformationprojects@cefic.be.