ICCA Publishes New Report: ‘Pathways for the Global Chemical Industry to Climate Neutrality’

Content reshared from the ICCA website

ICCA has released a new report titled ‘Pathways for the Global Chemical Industry to Climate Neutrality’. This report takes an indepth look at how the global chemical industry can achieve climate neutrality by mid century, aligning with the ICCA’s commitment to the Paris Agreement. With insights from the latest scientific modeling and industry expertise, the report outlines four pathways for the chemical industry to reach climate neutrality, addressing the unique challenges and opportunities for emission reduction within the sector.

“The global chemical industry is committed to innovating and adapting to meet society’s needs while significantly reducing its carbon footprint. By identifying multiple pathways and key enablers, we can empower regions worldwide to adopt sustainable, locally-suited solutions. The work we’re undertaking today underscores our commitment to the Paris Agreement and our ambition to achieve a climate-neutral future, fostering a chemical sector that is resilient and responsible.”

Ignacio Hernandez-Bonnett – Vice Chair of Energy & Climate Leadership Group, ICCA

The chemical industry plays a pivotal yet often understated role in modern society, contributing to essential products across healthcare, food packaging, textiles, housing, and transportation. However, the industry also faces significant hurdles in reducing greenhouse gas emissions, stemming from carbon-rich raw materials and the energy-intensive nature of chemical production processes. To address these challenges, ICCA’s report explores a technology-neutral approach, identifying multiple pathways that emphasise regional flexibility and resource availability.

A range of strategies needed to reach climate neutrality

ICCA’s report reveals that no single solution exists for the industry’s climate-neutral future; instead, a range of strategies must be pursued, tailored to local resources and conditions. The pathways range in focus, with some emphasising increased use of biomass, while others prioritise carbon capture and storage (CCS) or carbon capture and utilization (CCU). The common thread across all approaches is the shift toward using recycled materials, sustainably sourced biomass, and low-emission energy.

Critical enabling factors

Achieving climate neutrality for the chemical industry depends on key enablers

1. Recycling and Plastic Waste Management: As only 9% of global plastic waste is currently recycled, increased recycling rates and improved waste management infrastructure are crucial.
2. Sustainably Sourced Biomass: To avoid adverse environmental impacts, sourcing biomass sustainably is essential as the sector seeks carbon-neutral feedstock.
3. Low-emission Hydrogen: Hydrogen is a cornerstone of chemical production processes, and the transition to low-emission hydrogen sources like green and blue hydrogen is vital.
4. Carbon Storage and Low-emission Fossil Feedstock: Despite efforts to embrace bio-based and circular options, fossil feedstock and CCS will remain necessary for the foreseeable future.
5. Affordable Low-emission Energy: Access to reliable and affordable low-emission energy is fundamental to meeting production needs, especially for processes requiring high temperatures.

As the global chemical industry progresses toward climate neutrality, ICCA remains committed to supporting the Paris Agreement and fostering collaboration to reduce emissions across the supply chain. The Pathways for Climate Neutrality report underscores that while the road ahead is complex, with a technology-neutral approach, adaptable strategies, and support for critical enablers, climate neutrality is within reach.