A growing body of reporting highlights the slow pace of decarbonization in the global chemical industry, which contributes 5–6 % of total greenhouse gas emissions.

Europe's first commercial-scale e‑methanol plant in Kasso, Denmark, demonstrates how renewable-powered CO₂ and hydrogen streams can produce low‑emission fuel and plastics. Siemens electrolyzers powered from solar energy convert captured CO₂ into e‑methanol, which also supplies heat to 3,300 homes. Despite widespread pledges—over 70 % of top producers targeting carbon neutrality by 2050—credible decarbonization plans remain scarce.

Companies like BASF, Dow, Linde, and HiiROC are piloting hydrogen-based and electrification pathways, including thermal plasma electrolysis and renewable‑powered steam cracking. However, hydrogen remains <1 % green due to costs of renewables and geopolitical funding instability. Industry experts underscore that emissions could more than double by 2050 unless investment in clean hydrogen, electrification, and carbon capture accelerates.

Circular economy and recycling strategies might reduce chemical demand by up to 31 % by mid‑century. The sector’s capital intensity and low margins present adoption barriers, demanding coordinated policy and R&D support to scale breakthrough technologies. Analysts emphasize the need for multi‑vector solutions—ai‑based optimization, renewables coupling, and carbon capture- to drive sustainable transformation.

Reference: Reuters