Chemical sector claims positive role in climate change 

"For every unit of greenhouse gases emitted directly and indirectly by the chemical industry, the industry enabled 2-3 units of emission savings via the products and technologies provided to other industries and consumers," states the first-ever report on the Carbon Life Cycle Analysis (cLCA) of the chemical industry, based on 2005 figures.

The report - prepared by the International Council of Chemical Associations (ICCA) with the support of the global management consulting firm McKinsey & Company and Germany's Öko-Institut - was launched on 7 July, the day before leaders of the eight most industrialised nations (G8 ) meet to debate energy and climate change.

The industry is hoping for free emission allowances in the next phase of the EU emissions trading scheme, which starts in 2013. 

The report states that "the ratio of emissions savings to emissions could increase to more than four to one" by 2030. 

The most important emission savings are said to come form building insulation materials, agrochemicals, lighting, plastic packaging, marine antifouling coatings, synthetic textiles, automotive plastics, low-temperature detergents, engine efficiency and plastics used in piping. 

Insulation materials reduce heat loss in buildings and chemical fertilisers and crop protection in agriculture increase yields, helping to prevent emissions from land-use change, the report stresses. 

However, according to the report, two thirds of the industry's abatement potential lies in the developing world, and "several hurdles stand in the way of realising this". 

Therefore, the emissions saving potential identified in the study will only materialise with "effective policy and regulation" and a global carbon framework speeding up CO2 reductions, the study stresses. It states that "harmonised global policies" are essential to reduce the risk of market distortion and carbon leakage, and recommends local transitional provisions, such as free carbon allowances, to avoid market distortions at an earlier stage. 

Reducing the chemical industry's emissions

Asked how the future increase in total production will affect the sector's emissions growth, Theo Walthie, business group president at Dow and a member of the ICCA task force on climate change and energy, told EurActiv that even if "at production side the total growth is slightly higher, the use of products will grow as well," enabling ever more indirect CO2 reduction. 

"We need to look at the total lifecycle of chemicals," Walthie insisted, stressing the "shared responsibility" of regulators and industry in this regard. Regulators need to stimulate the manufacture of products that lead to less CO2, and industry needs to make its processes more energy efficient, use electricity from renewables and invest more in innovation to help reduce emissions through other sectors, Walthie continued. 

"Our industry is constantly becoming more energy and resource efficient," he added. The report shows that while chemical production in the EU rose by 60% between 1990 and 2005, total energy consumption remained stable. This means that the industry has cut its energy intensity by 3.6% annually and absolute CO2 emissions have fallen by almost 30%, the report notes. 

Walthie further predicted that the current 4-5% renewables use for power generation "will go up significantly by 2030".

Growth in production will mainly come from the developing world, he said, stressing the need for "a global look" on the matter. The report further highlights the need for technology cooperation between companies in the developed and developing worlds to "create positive business opportunities for both technology owners and receivers".