A Formula to Net Zero: The Chemical Industry’s Strategy

As the world accelerates towards a net zero future, the chemical and pharmaceutical industries stand at the forefront of this transition. These sectors, integral to modern manufacturing, are not only significant contributors to global emissions but also pivotal enablers of sustainable solutions. Their role in decarbonising the economy is more crucial than ever, as they work to meet stringent net zero targets while continuing to support vital sectors like food production, aerospace, automotive and healthcare.

The Industry’s Impact and Emissions

The UK’s chemical and pharmaceutical industry is a cornerstone of the manufacturing sector, contributing some form of supply chain to approximately 96% of all manufactured goods. Despite this, the chemical and pharmaceutical sectors are responsible for 19% of the UK’s industrial emissions. This deep integration makes the industry a key player in various supply chains and a major factor in the scope 3 emissions of other sectors.

As one of the largest employers and exporters, the transition to net zero in this industry is not just about reducing emissions; it’s about maintaining the UK’s competitive edge in the global market. Over the past decade, the sector has made notable strides in emission reductions, achieving a 30% decrease between 2011 and 2021. This progress is further underscored by a rise in production output by 11.4% from 2018 to early 2023, reflecting a growing commitment to decoupling economic growth from carbon emissions.

Commitments to Greenhouse Gas Reduction

The Chemical Industries Association (CIA) reports that approximately 75% of emissions from the UK chemical and pharmaceutical sectors are now aligned with stringent greenhouse gas targets. Within this framework, 35% of these emissions are covered by carbon-neutral or carbon-positive commitments set for 2025, 2030, and 2050, while the remaining 65% are addressed through cluster decarbonisation initiatives.

The CIA has set ambitious goals, using 2018 as a baseline, to halve the industry’s direct greenhouse gas emissions by 2034 and to achieve a 94% reduction by 2050. This trajectory aligns with the Climate Change Committee’s advice for the 6th Carbon Budget, ensuring that the sector contributes to the UK’s broader climate goals.

Strategic Framework for Sustainability

To drive the sector’s sustainability efforts, the CIA has implemented a Sustainability Programme, structured around four core pillars:

These pillars are aligned with the UN’s Sustainable Development Goals, reinforcing the industry’s global commitment to sustainability.

Challenges on the Path to Net Zero

Despite the clear roadmaps and strong commitments, the path to net zero for the chemical industry is fraught with challenges. One major hurdle is the high energy intensity of chemical processes, which often rely on fossil fuels. Transitioning to renewable energy sources requires significant investment and technological advancements.

Another challenge is the development and scaling of low-carbon technologies, such as carbon capture and storage (CCS) and the utilisation of green hydrogen. These technologies are still in their infancy and require substantial research and development. The industry also faces logistical and financial challenges in retrofitting existing plants and infrastructure to accommodate these new technologies.

The CIA’s Role in Driving Net Zero Progress

The CIA’s Sustainability Programme is pivotal in helping members and stakeholders develop their sustainability and net zero strategies. The sector is a strong contributor to tackling climate change, both directly and indirectly. 

Directly, the sector is continuously working to improve its Scope 1 and Scope 2 emissions, with businesses looking to improve energy efficiency, adopt low-carbon technologies, and increase the use of renewable energy sources. 

Indirectly, the chemicals industry plays an important role in reducing the emissions of its ultimate end products and solutions. On average, for every tonne of greenhouse gas the industry emits creating products for use in manufacturing, the end products generate 2.5 tonnes less greenhouse gases throughout the lifecycle. An example of this in action could be lightweight polymers which may be carbon-intensive to make but result in lower carbon emissions from automotive vehicles and aircraft where they are used.  

Key industrial clusters already have decarbonisation plans in place, involving shared infrastructure with other sectors. If fully deployed, these projects could abate nearly 100 million tonnes of CO2, making a substantial contribution to the UK’s net-zero goals.

Case Studies: Industry Leading Examples

Carbon Capture on-site investment: Tata Chemicals Europe has established a 40,000-tonne CO2 capture and utilisation plant at its Winnington site, repurposing captured CO2 into pharmaceutical-grade sodium bicarbonate. This innovative approach not only reduces emissions by 10% but also sets a precedent for future expansion, potentially doubling its carbon capture capacity.

Product development reduces CO2 emissions: Victrex, a world leader in polymer solutions, has developed lightweight, long-lasting, and sustainable polymers that have eliminated over 80,000 tonnes of annual CO2 emissions in European cars and a further 100,000 tonnes of CO2 in global aerospace emissions. Developing lighter polymers has helped to reduce the amount of fuel required to power major aircraft fleets.

The chemical and pharmaceutical industries are integral to the UK’s economy and the global pursuit of net-zero emissions. While they face significant challenges, including the need for substantial investment in renewable energy and low-carbon technologies, their proactive strategies and ambitious targets highlight a strong commitment to sustainability.

By driving innovation, enhancing resource efficiency, and fostering collaboration across industrial clusters, these sectors are poised to play a crucial role in reducing emissions and supporting the broader transition to a sustainable future. The journey is complex, but with continued dedication and strategic action, the chemical industry can significantly contribute to achieving net-zero goals.

References: 

https://www.cia.org.uk/our-focus/net-zero/tackling-climate-change-through-chemistry

https://www.cia.org.uk/our-focus/net-zero

https://www.cia.org.uk/energy-and-climate-change/navigating-net-zero/74.article

https://www.cia.org.uk/net-zero/accelerating-britains-net-zero-economy-the-chemical-industry/85.article

https://www.cia.org.uk/sustainable-future/progress-contributions-and-challenges/225.article#Low_Carbon_and_Circular_Economy