BARCELONA (ICIS)--Europe’s chemical sector faces a carbon bill of around €1bn in 2021 amid a ramp up in regulatory measures around the world.
- Europe carbon prices rose from €25/tonne in October 2020 to €35/tonne today
- May increase to €50/tonne as market restructures and tightens
- Chemical industry in Europe faces carbon charge of €1bn in 2021 according to ICIS Carbon Analytics estimates
- Europe’s chemical industry is becoming more exposed, losing free carbon allowances
- Massive investment required to meet tougher carbon reduction targets
- New Europe rules to be decided in 2021 will determine costs for next 10 years
- China has introduced a national carbon trading system
- New US administration is not expected to quickly introduce national carbon controls
- Chemical companies will be starved of investment if they fail to act
- Expect a big shift from global to local supply chains
- Beyond 2030 there may be no more worldscale chemical projects built
- Automotive semiconductor shortage highlights vulnerabilities of global supply chains
Interview with Philipp Ruff, ICIS director energy analytics, John Richardson, ICIS senior consultant for Asia and Paul Hodges, chairman of New Normal Consulting.
Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.
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Interview by Will Beacham