Cefic backs climate deal at Paris summit, cuts 2015 growth forecast

BRUSSELS (ICIS)–Cefic has voiced its support for heads of state to reach a deal on climate change when they convene in Paris in December for a key environmental summit, but called for EU policymakers to ensure a level playing field between regions, trade body head and Solvay CEO Jean-Pierre Clamadieu said on Friday.

Concluding the chemical industry trade body’s annual general assembly, Clamadieu said that Cefic supports an international deal on climate and a shift in Europe towards a low-carbon economy, but added that competitiveness should be kept in mind.

The EU chemical industry’s growth prospects remain modest due to the region’s slow recovery since the 2009 crash, he added, leading Cefic to cut its full-year growth forecast for 2015 to 1.0% from 1.5%. Growth forecasts for 2016 have been pegged at 1.5%, he added.

In terms of EU climate change initiatives, reforms to the emissions trading system (ETS) would help energy-intensive businesses to stay competitive and prevent investments flowing to countries with less-regulated carbon markets, according to Clamadieu.

“The next months will be a crucial test for EU policymakers to tackle climate change while also preserving the long-term competitiveness of the chemical industry,” he said, speaking in Brussels.

“As a provider of solutions and innovations for almost all manufacturing sectors, the chemical industries enable the EU to achieve its goals for climate change mitigation and energy transition. But we also need the EU to help us regain competitiveness by adopting clear, realistic long-term policies,” he added.

Known as the 21st Conference of the Parties (COP 21), the upcoming UN climate change summit has already seen some indications that several significant economies may be willing to sign up to emissions-reduction measures, including China.

The International Energy Agency (IEA) noted in June that China’s commitments toward COP 21 have been reinforced, with a potential target of hitting its emissions peak in 2030.

The EU may commit to reducing its greenhouse gas emissions by 40% compared to 1990 levels by 2030, which would make it “one of the world’s least carbon-intensive energy economies,” the IEA said.

The extent of the EU’s emissions reduction goals risks creating distortions in competitiveness between markets, Clamadieu said, stating that major emitting countries should also sign up to the target.