CEFIC Warns on Low Carbon Economy

In an open letter to the EU’s leadership published in the British business daily Financial Times, chemical producers organized in the European Chemistry Council, CEFIC, have expressed firm support for the agreement of a globally binding climate change agreement at the upcoming UN climate conference COP21 in Paris.

At the same time, however, the industry leaders warn that the move to a low carbon economy must allow chemical production to remain competitive so that companies can continue being innovative. It also should not come at the expense of an energy-intensive sector, they stress.

Already, the CEFIC members note, the €551 billion chemical industry – pillar of the European economy with a significant trade surplus of €43.5 billion – provides over 1 million direct jobs and nearly 2.5 million indirect jobs. It has already cut its greenhouse gas emissions by 54% against 1990 levels, despite production growth of 70%.

In implementing new rules for climate regulation, Europe’s policymakers should make sure that energy-intensive industries are not exposed to investment leakage, CEFIC says, adding that “European deindustrialization is not and should never be seen as a viable option on the journey to decarbonization.”