Chemical industry leaders: we look to new EU Industrial strategy to help us “put the wheels” on the Green Deal
Policy coherence and regulatory predictability are the “one key thing” the EU chemical industry needs in order to help the EU achieve the EU Green Deal objectives. This was the key message conveyed by EU chemical industry leaders – Neil Carr (President, Dow Europe Middle East, Africa and India), Samia Nehme (Vice-President, Shell Chemicals Europe and Africa) and Marco Mensink (Cefic Director General) at the EU Industry Day annual conference organised by the European Commission between 23 and 26 February 2021.
All speakers stressed that policy coherence would help the chemical industry attract much-needed investments to further reduce emissions from its manufacturing and at the same time keep production of innovative low-carbon and circular economy solutions and technologies here in Europe. This is also the way to ensure that new jobs thrive and remain in Europe.
“The COVID crisis really Illustrated value of local manufacturing and seriously underscored the risk we face if Europe loses its chemical manufacturing backbone… A lack of investment in Europe today will lead to an increase in imports in the future. “
Neil Carr, President, Dow Europe, Middle East, Africa and India and Chair of Cefic’s Programme Council Industrial Policy
The current COVID19 pandemic has tested the resilience of the chemical industry, some sectors of which immediately responded to societal demand and increased their production of essential items (e.g. materials for disinfectants, masks, protective equipment, medicines) to help governments and communities fight COVID-19. This has underlined a key role chemicals play in strategic value chains and the positive effect that a strong and resilient chemical sector has on the EU economy.
“The chemical industry turns molecules into power and power into molecules. So much of the transformation of the future will happen in our assets. What we need to do is have the right environment to be able to innovate and really invest in the right things going forward.”
Samia Nehme, Vice President, Shell Chemicals Europe and Africa, Global Excellence and Product Stewardship and Chair of Cefic’s Product Stewardship Programme Council
Both Ms Nehme and Mr Carr have stressed that the chemical industry is looking forward to the upcoming EU Industrial Strategy expected in April 2021 to provide favourable conditions for businesses to recover from the impact of the COVID19 pandemic and at the same time continue innovating in line with the European Green Deal agenda. And if that is not challenging enough, this industrial transformation will need to happen against tough competition from other regions: while the EU remains the second largest chemicals producer in the world, its relative share of the global market has nearly halved over the last 20 years, dropping from 26.7% to 14.8%.
“The competitive question for us cannot be underestimated because to become carbon neutral we need a massive investment to transform the production of the chemical. We clearly need to start investing now. We look to the EU Industrial strategy to help us “put the wheels on the Green Deal.”
Neil Carr, President, Dow Europe, Middle East, Africa and India and Chair of Cefic’s Programme Council Industrial Policy