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Analysis of the impact of INDCs on the competitiveness of the EU chemical industry

Published: 07/03/2016

The Paris agreement represents a unique and unprecedented achievement by collecting bottom-up the intention of practically all countries in the world. The agreement aims to limit global warming to well below 2°C and to pursue efforts to limit the temperature increase to 1.5°C. The agreement may, in the long term, have a profound impact on the chemical industry worldwide because the cost of energy and feedstock, which are currently mainly fossil-fuel based, are such an important part of the chemical industry’s production costs.

In an independent report commissioned by Cefic, Ecofys has analysed the potential impacts of INDCs and supporting energy and climate policies on the chemical industry in key competing regions: Brazil, China, India, Japan, Saudi Arabia and the USA. The study evaluates whether the competitive position of the European chemical industry will be positively or negatively impacted by the INDCs. In this, the study zooms in on four individual competiveness factors: carbon prices, energy prices, demand for low carbon chemical solutions and low carbon innovation. Ecofys collaborated in this study with the IEA and had access to part of model inputs that have been used by the IEA to simulate its INDC scenario.

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Michiel Stork
Sustainable Industries and Services
Maarten Neelis
Climate Strategies and Policies