Cefic’s White Paper calls for a comprehensive European Market Mobilisation Plan to strengthen the business case for low-carbon and circular investments in Europe’s chemical industry, which is currently facing weak demand, limited willingness to pay a “green premium,” rising asset closures, and declining investment.
Recommendations
- Deploying targeted short-term incentives such as public funding for value chain partnerships, tax incentives, green public procurement, and Contracts for Difference;
- Creating structural demand through balanced circular content requirements with robust and enforceable equivalency clauses and, in the longer term, Product Carbon Footprint (PCF)-based policies; and
- Further developing and evaluating options for a transition contribution scheme that channels financial support from end markets to chemical producers to help bridge the cost gap between conventional and sustainable production while being fair for downstream users and consumers.