Primary chemicals

To reduce emissions, the industry must prioritize CCUS, energy efficiency and plastics recycling now, while advancing electrification, fuel shifts, bio-based feedstocks and hydrogen for lasting impact.

Performance summary

– The emission intensity has been stable at approximately 1.3 Mt CO2e /Mt chemicals⁴⁵⁵ for the last five years. This is primarily due to the industry prioritizing addressing supply chain disruptions and commodity price volatility.

– The absolute emissions⁴⁵⁶ for primary chemicals has seen 6%⁴⁵⁷ rise in the 2019-2023 period, driven by an increase in demand for ammonia by 4%, methanol by 19% and high-value chemicals by 9%.⁴⁵⁸

– Low emission production accounted for only 2%⁴⁵⁹ of the total emission production worldwide in 2022. Only 8% of current plastic production is through recycling.⁴⁶⁰

– In 2022, the energy mix for primary chemicals was composed of 55% natural gas, 36% coal, 7% electricity, 1% oil and 0.6% biofuels.⁴⁶¹

– Current infrastructure stands at less than 1% for CCUS, clean power and hydrogen of the required infrastructure capacity by 2050 for net-zero emissions.⁴⁶²

Future emissions trajectory

– The industry is forecasted to reduce emissions intensity by 28%⁴⁶³ by 2030 compared to 2023 levels, according to IEA Net Zero Scenario. Absolute CO2e emissions are expected to be 0.77 Gt in 2030.⁴⁶⁴

– 90%⁴⁶⁵ of publicly traded companies in primary chemicals industry consider climate change in their operational decision-making processes, and 58%⁴⁶⁶ of companies have approved Science Based Targets initiative (SBTi) targets.

Readiness key takeaways

Sector priorities

Note: This page presents a condensed summary of the sector’s performance, for a complete view, including on the sector’s readiness for the energy transition, please view the sector PDF here.