McKinsey: Chemicals industry delivers 2:1 emissions savings

Rome - The chemicals industry cuts twice as many greenhouse gas (GHG) emissions as it emits and has an abatement potential of more than ‘4 to 1’ by 2030, according to a McKinsey  & Co. report for the International Council of Chemical Associations (ICCA).

McKinsey's carbon life cycle analysis of the chemical industry found that for every unit of GHG emitted directly and indirectly by the chemical industry, the industry enabled more than two units of emission savings via the products and technologies provided to other industries and consumers.

By 2030, the ratio of GHG emission savings to emissions could increase to more than ‘4 to 1’, provided certain actions by industry, stakeholders and policymakers, according to the report, which was released just ahead of the Major Economies Forum on Energy and Climate meeting in Rome.

McKinsey conducted independent analyses and overall project management for the study, which examined the global chemical industry’s impact on greenhouse gas emissions through the life cycle of chemical products and the difference they make in the applications they enable. The Öko Institut, an independent environmental research and consulting institution, conducted a critical review of the analysis and reviewed the calculations.

The study used a life cycle carbon dioxide-equivalent (CO2e) emissions analysis to assess the impact of the use of chemical products improving carbon efficiency in the global economy. Analyses were performed for over 100 individual chemical product applications. Emission savings were compared with all emissions linked to the chemical industry.

The analyses spanned the major relevant products and sectors of the chemical industry and cover a representative portion of the CO2e emissions linked to the chemical industry. All industry production-related emissions were included, whereas only the major use-driven emissions savings were measured. Additional life cycle analysis could therefore reveal greater emissions savings than reported in this study. Finally, 2030 modeling scenarios were used to extrapolate how emissions for both production and use phases may develop.

The most significant emissions savings by volume were found to be from building insulation materials, such as polystyrene or polyurethane foam, agrochemicals, lighting, plastics packaging, marine antifouling coatings, synthetic textiles, automotive plastics, low-temperature detergents, engine efficiency, and plastics used in piping.

“This study highlights the vital role of the chemical industry as enabler of solutions to decarbonise the global economy by making products that save energy and create a net emission reduction along the chemical value chain,” said ICCA president Christian Jourquin, CEO of Solvay.