WCCN

Warsaw Cluster Collaboration Network

Warsaw Collaboration Network Cluster public consultations of the chemical pathway industry roadmap for the European Commission

WCCN is taking part in the Transition Pathway Chemicals – EBB preparation.

This piece will be a the first document proposing to European Commission about the market, and public view on the transition pathway that shall be considered for the future of bringing the European Union the Climate Goals achievements in prospect of 2025, 2030 and 2050.

New Science Technology – WCCN coordinator

INTRODUCTION

The chemical sector is of strategic importance to the European economy. Chemicals are at the basis of Europe’s essential and strategic value chains; including pharmaceuticals, electronics, EV batteries, construction materials, etc. Today, most manufactured goods rely on chemicals in some shape and form. 

The EU-27 is the second largest chemicals producer in the world with €499 billion in sales in 2020 and the chemical industry is the fourth largest producer within EU borders, representing around 7% of manufacturing by turnover. On the labour market, it provides 1.2 million direct highly skilled jobs and 3.6 million indirect jobs in addition to supporting around 19 million jobs across all value supply chains. The EU chemical industry has a labour productivity 67% higher than the manufacturing average. It generates a trade surplus of €36.4 billion and it is the second largest R&I investor in the world with 4 billion invested on a yearly basis.   

The chemical sector is the third industry in terms of direct CO2 emission (920Mt CO2 in 2020), behind cement and iron steel. This is largely because around half of the chemical’s energy input is consumed as feedstock. The Net Zero Emission Scenario by 2050 foresees a clear reduction of carbon dioxide (CO2) emissions from primary chemical production. As highlighted by the latest Intergovernmental Panel on Climate Change (IPCC) contribution to the 6th Assessment Report5, the total net anthropogenic GHG emissions continued to increase in the past decade, although this happened at a slower pace than in previous decades. Immediate and deep emissions reductions across all sectors are necessary.

The industry has made important progress towards sustainability and reduction of its own emissions. Despite an increase in production by more than 47%, GHG emissions of EU27 chemical production have decreased by 54% in comparison to 1990 levels; while energy consumption in the EU27 chemical industry has fallen by 21% in comparison to 1990 levels. 

In addition to climate, feedstock and energy targets, the chemical industry must factor in circularity objectives, manage the implementation of the EU Chemicals Strategy for Sustainability (CSS) and meet its goals for a toxic-free environment. With its innovation capacity, it plays a key role in developing safe and sustainable materials that can help other sectors of the economy in their own climate transition. The chemical industry can also play a central role in achieving a circular economy in numerous value chains, by recycling waste streams into new chemical building blocks and materials.

The industry also needs to tackle the digitalization transformation that could serve as enabler for meeting the above objectives, while retaining its competitiveness and keeping pace with societal developments. 

Given its size and strategic relevance, the chemical industry is therefore at the centre of the European Green Deal and a major contributor to its achievements. There is both a clear understanding that far more needs to be done and great determination to be at the forefront of the transformative process.

By 2030, the European chemical industry will have phased out a certain number of substances and should have achieved a certain number of green objectives. The Net reduction of GHG emissions by at least 55% and the gross final consumption of energy should be at least 40% from renewable energy sources.
By 2050, the chemical industry will have undergone a massive transformation, both in products that it generated and, in the way these products are made. In this matter, Gas-fired power plants and high-efficiency CHP must be fully converted to renewable or low carbon gas.

The transition is more than ever needed also in the light of the recent international developments. The EU chemical industry is highly integrated into numerous and complex international value chains that are sensitive to the geopolitical situation, such as the unjustified Russian war of aggression against Ukraine started in February 2022. The current crisis brings the resilience objective set by the updated EU Industrial Strategy under a new light; emphasizing the benefit of increasing the industry’s capacity to absorb external shocks due to a fragile geopolitical situation and a challenging competitive environment, with rising energy and raw material prices.

This document – intended for publication – presents the roadmap leading towards the achievement of both the green and digital transition (twin transition) and towards the resilience of the industry. The roadmap is the result of a co-creation process with stakeholders, under the European Green Deal framework. Stakeholders discussed with the Commission on each of the building blocks composing the transition pathway’s matrix developed by the Industrial Forum. For each building block a series of actions and initiatives were identified as contribution to the achievement of the twin transition and resilience of the industry. These actions were done clustered in topics and presented against an indicative timeline; providing a direction on some major aspects that require sequencing as part of a co-implementation process in order make it operational. 

It constitutes the first component of the broader transition pathway of the Energy Intensive Industries (EIIs) ecosystem.

Due to all above we would like invite the Industry, Public and stakeholders to have their say for the plans and goals aimed to assure the transformation. Also we want to assure smooth and feasible transition based on the. matrix planned below and discussed during these consultations.

The outcomes of the consultation will be placed in the Report of Transition Pathway Chemicals that will be presented by nst.agency to the The Chem-TP Team, European Commission Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs Consumer Industry

CONSULTATION MATRIX

  • BUILDING BLOCKS
  • SUSTAINABLE COMPETITIVENESS
  • INVESTMENTS AND FUNDING
  • R&I, TECHNIQUES AND TECHNOLOGICAL SOLUTIONS
  • REGULATION AND PUBLIC GOVERNANCE
  • ACCESS TO ENERGY AND FEEDSTOCK
  • INFRASTRUCTURE
  • SKILLS
  • SOCIAL DIMENSION

ROADMAP

  • A. REGULATORY ROADMAPS
    • ROADMAP A.1: Industry’s Objectives
    • ROADMAP A.2: REACH and CLP Implementation
  • B. ACTION ROADMAPS
    • ROADMAP B.1: Collaboration for innovation
    • ROADMAP B.2: Renewable Energy Supply
    • ROADMAP B.3: Feedstock Substitution and Safe and Sustainable by Design Framework
  • C. TECHNOLOGICAL COMPONENTS

NEXT STEPS

  • Annex 1 – Overview of the objectives impacting the chemical sector
  • Annex 2 – Overview of initiatives impacting the chemical sector
  • Annex 3 – Summary of the topics under each building block
  • Annex 5 – Suggested legislation actions by stakeholders

To express you interest please contact directly the coordinators office (all contacts in the website header)

mailto:nst@wcc.net.pl