The chemicals sector is a major contributor to greenhouse gas (GHG) emissions. In 2018, the sector accounted for 8% of global emissions. This is due to the high energy intensity of the sector, as well as the use of fossil fuels in many chemical production processes.

Achieving net-zero emissions in the chemicals sector will require a major transformation of the sector

This will involve a number of changes, including:

• Improving energy efficiency. The chemicals sector can reduce its emissions by improving energy efficiency. This can be done by using more efficient equipment, optimizing processes, and using renewable energy sources.
• Shifting to low-carbon feedstocks. The chemicals sector can also reduce its emissions by shifting to low-carbon feedstocks. This could involve using biomass, waste, or captured carbon dioxide as feedstocks.
• Deploying carbon capture and storage (CCS) technology. CCS technology can be used to capture carbon dioxide emissions from chemical production processes and store them underground. This can help to reduce the sector's emissions to net-zero.

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The chemicals sector is already taking steps to reduce its emissions. For example, the American Chemistry Council has set a goal of achieving net-zero emissions by 2050. The European Chemical Industry Council has also set a goal of reducing emissions by 50% by 2030.

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These are ambitious goals, but they are achievable. With the right investments and technologies, the chemicals sector can play a major role in the fight against climate change and greenhouse gas emission reduction.

Here are some of the specific challenges and opportunities for the chemicals sector in achieving net-zero emissions:

Challenges:

• The chemicals sector is a complex and energy-intensive industry: The chemicals sector plays a vital role in various aspects of the global economy, supplying essential materials and products across multiple sectors. However, the production processes involved in the chemicals industry often require significant amounts of energy, which can result in substantial greenhouse gas emissions. The complexity of the sector arises from the diverse range of chemical processes, each with unique requirements and challenges for emission reduction. This complexity makes it challenging to implement emission reduction measures without disrupting production or incurring substantial costs. Reducing emissions in thechemicals sector requires implementing energy-efficient technologies, optimizing process designs, and adopting cleaner feedstocks. However, making significant changes to existing production processes can be a costly and time-consuming endeavor. Additionally, energy-intensive processes often rely on fossil fuels as a primary energy source, making it difficult to transition to low-carbon alternatives without disrupting operations or significantly increasing costs. Finding a balance between emission reduction and maintaining competitiveness is a complex task faced by the chemicals sector.
• Lack of mature technologies for capturing and storing carbon dioxide (CO2): Carbon capture and storage (CCS) is a crucial technology for mitigating greenhouse gas emissions, including in the chemicals sector. CCS involves capturing CO2 emissions from industrial processes, compressing and transporting the CO2, and then securely storing it underground or utilizing it for other purposes. However, the deployment of CCS in the chemicals sector faces several challenges. One major barrier is the lack of mature and cost-effective CCS technologies specifically tailored to the chemicals industry. While CCS has been applied in other sectors such as power generation, its application in the chemicals sector requires different technical considerations due to the diverse range of chemical processes involved. Developing and implementing efficient and economically viable CCS technologies for capturing CO2 from chemical production processes is an ongoing research and development challenge.
• The chemicals sector is highly globalized: The chemicals industry operates on a global scale, with production facilities, supply chains, and markets spanning multiple countries and regions. This globalization presents unique challenges when it comes to coordinating efforts to reduce greenhouse gas emissions. Different countries and regions have varying regulations, policies, and priorities regarding      emissions reduction, which can create discrepancies and inconsistencies in emission reduction targets and strategies within the chemicals sector. Harmonizing and aligning emission reduction efforts across international boundaries can be complex, requiring collaboration and coordination between      governments, industry associations, and stakeholders from different regions.

Opportunities:

• The chemicals sector is a major driver of innovation: Chemical companies are investing in research and development to explore alternative feedstocks, improve process efficiencies, and develop innovative solutions for emission reduction. This includes advancements in catalyst technologies, novel reactor designs, and the integration of renewable energy sources into production processes. The sector's expertise in chemistry, engineering, and process optimization allows for the exploration and implementation of innovative solutions that can significantly reduce emissions while maintaining product quality and competitiveness.
• Growing demand for low-carbon chemicals from end-use sectors: End-use sectors, such as automotive, construction, and consumer goods, are increasingly prioritizing sustainability and demanding low-carbon      chemicals and materials. This shift in consumer and market preferences creates new opportunities for the chemicals sector to develop and sell low-carbon products. Chemical companies are responding to this demand by investing in research and development to create more sustainable alternatives. For example, they are developing bio-based chemicals, renewable polymers, and environmentally friendly additives. By aligning their product portfolios with the growing demand for low-carbon solutions, chemical companies can tap into new markets and strengthen their competitive advantage.
• Government financial incentives for low-carbon technologies: Governments worldwide are increasingly recognizing the importance of transitioning to a low-carbon economy and are providing financial incentives to drive the development and implementation of low-carbon technologies. These incentives include grants, subsidies, tax credits, and other forms of financial support. These financial incentives reduce the      financial burden associated with the development and deployment of low-carbon technologies, making it more feasible for the chemicals sector to transition to a net-zero emissions future.

The chemicals sector has a major role to play in the fight against climate change. By taking advantage of the challenges and opportunities outlined above, the chemicals sector can help to achieve net-zero emissions and build a more sustainable future.