The traditional petrochemical industry in the European Union and the United Kingdom is facing a reckoning.

For decades, the chemical sector has relied on the extraction and refining of fossil fuels to produce a vast array of synthetic chemicals, plastics, and other materials that have become ubiquitous in our modern lives. However, the environmental toll of this model has become increasingly unsustainable, with mounting concerns over greenhouse gas emissions, toxic waste, and the proliferation of non-biodegradable plastics polluting our land and oceans.

As the global imperative to address climate change and environmental degradation grows ever more urgent, the petrochemical industry can no longer ignore the need for a fundamental shift towards greener, more sustainable practices.

In response, governments are slowly reacting. In the UK, for example, the government has committed £20 billion (US$26 billion) to initiatives aimed at reducing industrial emissions through carbon capture and storage, and £240 million towards the use of hydrogen fuel.

While this investment is to be admired, it remains small in terms of how much the chemical industry provides to the British economy. This includes £60 billion in exports (the country’s largest export sector), 130,000 directly employed workers plus a further 500,000 indirectly employed, and £10 billion of R&D spending each year. For this though, the UK chemical industry produces 19% of Britain’s carbon emissions.

The impact of fossil fuel dependency was brought to a head following Russia’s invasion of Ukraine and the subsequent price volatility in energy markets, with the UK experiencing some of the highest electricity prices in the world.

The result for some chemical companies was disastrous. For example, British fertiliser producer CF Industries was forced to close one of its largest manufacturing sectors in 2022 as well as cease ammonia production at its Billingham facility the following year.

This is where the principles of green chemistry offer a promising path forward - one that prioritizes the design and manufacture of chemicals and materials in a way that minimizes or eliminates the use and generation of hazardous substances. By embracing innovative green technologies, adopting renewable feedstocks, and prioritizing the principles of waste reduction, material reuse, and energy efficiency, the petrochemical industry in Europe and the UK can reinvent itself as a driver of the circular economy - reducing its environmental impact while still meeting the world's ever-growing demand for the essential chemicals and materials that power our modern way of life.

As Liam Hardy, a senior policy analyst at Green Alliance, notes, “We need a UK chemicals industry, the highly skilled jobs it provides, and the contribution it will make to a greener economy. But it will take deliberate government policy to find a way forward. For example, by requiring a certain amount of carbon in chemicals to come from greener sources through a ‘green carbon mandate’.”

“The UK chemicals industry has an important role to play in a greener economy, but we need to set it up to succeed,” says Graeme Cruickshank, chief technology and innovation officer at the Centre for Process Innovation (CPI). “The government can help by prioritising how we use resources critical to the chemicals industry, like hydrogen and biomass, that are in limited supply. The industry will also need to electrify quickly in the coming years, meaning it needs lots of affordable power, so building out the grid must be a priority.”

Unfortunately, policymakers find it difficult to comprehend the chemicals business due to its complexity, at the same time the chemical sector occasionally lacks a cohesive voice. This may be why the chemical companies in Europe and the UK fail to get the support they need. Meanwhile, in America, companies are choosing where to invest for greener manufacturing thanks to incentives like the tax rebates provided by the US Inflation Reduction Act.

“The UK has a long history of innovation and expertise in chemicals,” notes David Bott, head of innovation at the Society of Chemical Industry. “But the government has never really understood our industry. It’s now under threat from international competitors offering better incentives to pursue a greener future, and better-aligned regulation. We need an industrial strategy that helps steer the UK chemicals industry on to a positive path, directing its attention towards long term risks and opportunities.”  

The benefits of transitioning to a greener, more sustainable chemical industry are clear. By moving away from a reliance on fossil fuels and embracing renewable, eco-friendly alternatives, the chemical sector can position itself for long-term success and profitability.

Also on this topic, you may like to read: Chemical Industry Moves to Safer, Greener Perfumes, How Chemical Companies Can Turn Challenges into Profit, or What Can European Raw Material Suppliers Learn from Japan’s Recycling Model?

Not only will this reduce the industry's environmental impact and carbon footprint, but it will also allow chemical companies to better meet the growing consumer demand for green, sustainable products.

Additionally, investing in green chemistry innovations can unlock new revenue streams and help companies stay ahead of evolving regulations and consumer preferences. While the transition may require some upfront investments, the long-term payoffs in terms of cost savings, brand reputation, and environmental stewardship make a compelling case for chemical manufacturers to fully embrace a greener future.

As the world continues to prioritize sustainability, the chemical industry has a unique opportunity to lead the way and demonstrate how responsible, eco-conscious practices can drive business growth and success. By committing to a greener, more sustainable model, chemical producers can not only protect the planet, but also secure their own prosperous future.

Photo credit: Kai Dahms on Unsplash, Sam Jotham Sutherson, Karsten Wurth, & Flickr