Global Chemical Industry Is Failing On Paris Climate AccordOct 31st, 2017
According to the recent report ‘Catalyst for Change’, twenty-two largest global chemical-producing companies with an enormous market capitalization of over six hundred billing US dollars, are responsible for 276 metric tons of carbon dioxide emission, which is 25% sector’s total. While the overall indicators point out that the chemical sector is indeed making steps forward regarding climate change awareness, its already accelerated development is still not enough to align with the requirements and objectives outlined in the Paris Agreement.
Given that the chemistry industry is heavily reliable on energy sources, it is often criticized for its highly polytonal practices. To top this, the industry is one of the main players on the world economy arena, meaning its production volumes and, thus, emissions are virtually proportionate. Over the past decade, chemical produces adopted plenty of practices to research and develop with little carbon, yet the outlook of complete decarbonization is still far away.
On the bright side, around twenty percent of revenues in the pool of largest chemical producers come from the products and innovations with a solid background on providing solutions on climate change. Behind the percentage is the revenue of nearly 83 billion USD. The progress is also showing by an average of 3.5% energy efficiency improvements Y/Y.
Among the risks that the global industry faces when it comes to complying with the Paris Agreement is an uneven regulatory risk across the countries and companies. For instance, BASF and AkzoNobel have recently filed for tough regulations. Not to mention that Chinese companies are notorious for almost half of their chemical sales to not be supported with disclosed environmental reports.