Shortly before this issue went to press in July, the European Commission (EC) announced that it was making a call for initiatives in order to progress its Transition Pathway for the EU chemical industry. The pathway is aimed at the continued greening and cleaning of the sector in Europe and simultaneously incorporates it digitalization ambitions.   

As reported here from time to time, the strategy also seeks to free Europe from any unusual dependency on chemicals from non-EU countries, as well as championing the sectors of safe and sustainable chemicals, which are already being substituted within the paint and coatings sector. All kinds of bodies from within industry, as well as society groups, have been invited to make submissions that highlight their future intentions and practices for a climate neutral or climate friendlier, eco-conscious, and more digital chemical industry, with special focus to be placed on carbon dioxide emission reductions and green technologies.

The main objectives that are to shape the pathway have been set out in the EC’s report, Transition Pathway for the Chemical Industry. They are as follows:
•  Building and renovating in a resource-efficient way.
•  Mobilizing industry for a clean and circular economy.
•  Zero pollution objectives that create a toxic-free environment.
•  Supplying clean, affordable and secureenergy.
•  Increasing sustainable and smart mobility.
•  Raising the EU’s climate ambitions for 2030 and 2050.
•  Preserving and restoring ecosystemsand biodiversity.
•  A more environmentally-friendly food system.

Sustainable and International Competitiveness

The EU’s chemical industry has become less competitive in the global context over time and remains vulnerable to factors originating outside the continent, which can affect chemical value chains in EU countries. Furthermore, some chemicals imported from outside the EU do not satisfy the same environmental and safety standards as specified for EU manufacture and these continue to find their way into the EU’s internal market.

In order to tighten up on this, players in the chemical industry have highlighted the need to increase the competitiveness of the EU’s chemical sector on the world markets and also the need for further enhancement of safe and sustainable chemicals and materials. The vulnerability of EU chemical companies to supply chain variations will also be tightened up in order to close off undesirable suppliers and to head off the recurrence of others. Another vulnerability that is fertile with opportunity within the EU exists where some chemicals are no longer competitively produced within the EU (either through unprofitability or migration of customers outside the region); this is leading to innovation by industry within raw material value chains and this is an area with considerable untapped potential.

The impact on European energy prices from the Russia-Ukraine war is also being assessed to examine how this might impact sustainable competitiveness and development and innovation within the EU. On a similar level there are also suggestions that the EU might consider building up stocks of critical raw materials.

A key part of the sustainable chemicals sphere that now needs to be addressed is getting the message out to the consumer and that means promotional activities that will help to create “market pull” incentives and measures aimed at buyers and persuading them of the benefits of sustainable chemicals, despite their higher costs relative to those derived from virgin materials.

Supporting SMEs with Skills and Digitalization

The very large majority of the EU’s chemical industry is occupied by small- and medium-sized enterprises (SMEs). SMEs find themselves particularly vulnerable to the effects of legislation, market or supply chain upsets and potentially the changes and challenges that will come with digitalization. Acknowledging that SMEs are often unable to shift production or re-formulate products (since they occupy specialist chemical areas), and often have small workforces where there might not be dedicated regulatory or digitally aware staff, the EC and its member states are investing in a €1.5 billion network of European Digital Innovation Hubs that will give advice and support on the digital transition.

This will highlight what is available in terms of training, finance, advice and services, with special focus on a test-before-invest approach that is hailed as showing companies what can be achieved through digitalization before they commit themselves financially.
 
On the other hand, SMEs also tend to operate in environments that are geared towards apprenticeships, training, skills development and skills partnerships – all areas of EU activity – and these are seen as being crucial in establishing and retaining trained staff in this area. The availability of staff in industry with digital skills is scant and the demand both now and in the future will be sizeable. This presents opportunities in both training and jobs.

Challenges in Efficient Material Production

Major reductions in annual CO2 emissions over the 25-year period to 2050 are potentially achievable if the correct sorts of technologies are in place that can help to offset carbon dioxide releases from industry. Much of this shifts the chemical economy from being linear to circular in nature and brings into play the potentials of biomass and chemical waste as feedstocks.

Of these, the waste segment is ostensibly already the most advanced especially in terms of polymer chemistry and recycling in the fields of plastics and textiles. Chemical recycling technologies generate monomers and intermediates that may then be used as secondary raw materials. There has already been some success with the upcycling and scaling of these technologies, particularly in terms of accessing oils, waxes and solvents that are useful across a breadth of industries.

However, far more work remains to be done in terms of understanding scaling up and maintaining consistent supplies of recyclable feedstock, which ultimately poses the question of energy efficiency on a cost/benefits front. Much of this filters down to national and local government regulatory levels.

The use of biomass as the catch-all term for bio-based chemicals (sugars, sustainably sourced vegetable oils, residues, and agricultural or forest-based lignocellulosic biomass and residues) remains attractive yet challenging on several fronts, not least of which is their availability within Europe. The concept here requires the concept of bio-based supply chains that are efficient in every way (energy-, cost-, resource-efficient and zero polluting). But aside from the limited supplies of biomass within the EU, there is strong competition for its use in other sectors such as energy and transport and a huge scale of demand overall.

Still many challenges to face and still many mountains to climb!