Europe’s commitment to environmental sustainability has led to a significant push for green chemicals, prompting varied responses from the chemical industry. Major fossil fuel and industrial companies, including Shell, BP, and Tata Steel, have urged the European Commission to mandate consumer purchases of less polluting products. They argue that such regulations are essential to justify investments in greener production methods, warning of a potential “industrial exodus” without governmental intervention to create demand for cleaner products.
In response to the European Green Deal, the chemical industry has developed a Transition Pathway, outlining over 200 actions to guide the sector toward climate neutrality, circularity, digitalization, and the production of safe and sustainable chemicals. This collaborative effort involves industry stakeholders, EU institutions, and member states, aiming to build a business case for investing in sustainable solutions within Europe.
However, the industry faces challenges, including increased production costs due to stringent environmental regulations and competition from regions with less rigorous standards. The European Chemical Industry Council (Cefic) has reported a decline in the EU’s share of global chemical sales, from 23% in 2008 to 14% in 2022, highlighting the need for supportive policies to maintain competitiveness.
To address these challenges, companies are investing in research and innovation to develop sustainable solutions. For example, AP Møller Holding plans to build a €1.5 billion green plastics factory in Antwerp, Belgium, utilizing green methanol derived from low-carbon hydrogen or biomaterial, powered by green electricity. This initiative represents a significant step toward sustainable chemical production in Europe.
Europe’s push for green chemicals has elicited a proactive response from the industry, with companies advocating for regulatory support, investing in sustainable technologies, and collaborating on transition pathways to achieve environmental goals while maintaining economic viability.
