BLOG: How the Ukraine-Russia war could reshape EU ’30 chemicals industry, economy

SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson. The long-term implications of the Ukraine-Russia crisis will, in our view, lead to very different chemicals business models as supply chains de-globalise and as manufacturing is brought back home. Geopolitics will collide with another of the four megatrends – Sustainability.

Focusing just on the EU today in the first of a series of posts, this what the EU economy and its chemicals industry could look like in 2030.

Investments in wind, solar and wave generating capacity have soared. Manufacturing chains have been re-shored. Many millions of new jobs have been generated thanks to EU support for new “local-for-local” industries such as 3D printing and recycling. Local chemicals production is mainly from renewable feedstocks.

Investing in the carbon market has become a lucrative and widespread activity. The carbon market is also a source of new employment.

The region has become almost entirely chemicals and polymer self-sufficient.

Meanwhile, “less is more”. Manufacturing cost pressures and the climate change and plastic-waste clean-up imperatives have created a new chemicals business model. This is built around service contracts where cost-savings versus old approaches are shared up and down manufacturing value chains.

Editor’s note: This blog post is an opinion piece. The views expressed are those of the author, and do not necessarily represent those of ICIS.