The challenge of decarbonization in the chemical industry resembles a complex chessboard where each move must be judged carefully and methodically. Yves Lenain from Deloitte emphasizes that while technology allows for better control of emissions, integrating these technologies within existing infrastructures is not easy. Companies must navigate through a series of choices, ranging from long-term investment in promising but costly innovations to strategic collaborations to pool risks. It is crucial to secure these initiatives with clear regulations and support from public authorities, which are essential for the industrial energy transition. Intermediate players, often overlooked, now find themselves under intense pressure to adapt quickly, ultimately stimulating market demand for sustainable alternatives. The vision of an integrated ecosystem, from responsible production to systematic recycling, is slowly but surely taking shape, embodying a movement where each player, whether a base or specialty chemist, becomes an indispensable piece of the building under construction.
Decarbonizing the chemical industry represents a complex challenge, emphasizes Yves Lenain from Deloitte. As technologies to reduce CO2 emissions evolve, their effective deployment is hindered by technical and economic uncertainties. Players in the chemical sector, ranging from base chemists to intermediaries, are seeking to green their processes but are held back by issues of value chain, market regulation, and increasing pressure to decarbonize. Meanwhile, chemical recycling and the adoption of energy solutions like hydrogen remain stalled by complex challenges. The necessity for a synergy between actors and clear signals from public authorities is crucial to overcome these obstacles.
decarbonizing the chemical industry: a complex challenge
The ambition of decarbonization in the chemical industry relies on the implementation of advanced energy technologies, such as CCUS (carbon capture and storage). According to Yves Lenain, this solution, once confined to research laboratories, is beginning to take shape with large-scale installations. However, industrial players face significant uncertainties regarding profitability and regulation, in addition to technical challenges related to CO2 transport via pipelines. The market is still unclear on who truly benefits from the carbon gain, leading to hesitance among many investors.
Specialty chemists, whose carbon footprint is relatively low but added value is high, play a crucial role in this transition. However, the lack of communication along the value chain has until now rendered the “greening” process ineffective. Thanks to structuring initiatives such as the Science Based Targets Initiative (SBTi), a new dynamic is taking shape. This motivates companies to commit to ambitious goals, thereby promoting an integrated decarbonization of the supply chain.
intermediate players under pressure
Industrial players find themselves at the center of ecological pressure, highlighting the importance of their strategic orientation. These companies, often labeled as intermediaries, suddenly discover decarbonization requirements imposed by their clients, particularly in the automotive sector. This increased pressure leads them to seek suppliers of low-carbon materials, but many are out of sync, having only recently completed their first carbon assessment.
the crucial role of public authorities
Public authorities hold a strategic position in the economy of decarbonization, with the responsibility to send clear signals to stimulate investments and the development of essential infrastructures. The government must ensure that the transition to a low CO2 emission future enhances the competitiveness of companies. Among the tools in place, the carbon border adjustment mechanism (CBAM) aims to prevent economic imbalances related to unequal carbon taxation on an international scale.
