A condition chemical industry will face if the regulations about carbon emissions reducing publish

Potential risks faced by the chemical industry include uneven regulatory risks, upcoming regulations in China, and the so-called "diesel moment."

Potential risks faced by the chemical industry include uneven regulatory risks, upcoming regulations in China, and the so-called "diesel moment."

 

In terms of uneven regulatory risks, some chemical corporation such as AkzoNobel and BASF are facing stricter regulations brought about by national carbon emission reductions, and the result may be an increase in expenditures for the chemical companies.

 

Chinese companies account for 40% of global chemical sales, but many chemical companies currently do not disclose environmental data. However, as more and more Chinese chemical companies are subject to regulation, major changes that are about to occur, such as the launch of China's carbon emissions trading system at the end of 2017, may disrupt a wider range of industries.

 

Plastic packaging is an important output of the chemical industry, accounting for more than a quarter of global plastic usage. However, nearly 8 million tons of garbage end up polluting the ocean every year. As the relationship between diesel and severe air pollution becomes more apparent, automakers around the world are facing more and more regulatory backlashes. Similar actions can also be targeted at chemical companies because they are related to plastic packaging.

 

“The carbon footprint of the chemical industry is huge, which means that not only petrochemical and other high-emission companies will be affected by the low-carbon transition, but the entire industry will also be affected. Our research highlights that there is a general lack of transparency in how to improve processes and information disclosure. Limited. CDP Investor Research Director Carole Ferguson said: "Improving the transparency and practical commitment of low-carbon initiatives will be the key to assessing future industry leaders. "

 

"This year, Akzo Nobel has stood out in the industry through its promised decarbonization plan and has become one of only two evaluation companies with scientific goals. However, long-term investors will increasingly look for all chemical companies to adjust their Business strategy to meet more ambitious emission reduction targets and the rise of global carbon pricing mechanisms."