PODCAST: Europe chemicals face €1bn 2021 carbon bill as global action intensifies

Author: Will Beacham

2021/01/25

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

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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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Read John Richardson's Asia Chemical Connections blog.

Interview by Will Beacham