Assessment of the European Commission’s recent chemicals sector initiatives from the perspective of institutional investors

This paper assesses the Chemicals Industry Action Plan and the European Climate Law-Aligned Transition Pathways for the chemicals sector against the recommendations and criteria set out in IIGCC’s Principles for developing sector decarbonisation roadmaps – the investor perspective for policymakers. 

As the EU’s fourth-largest manufacturing sector, responsible for around 5% of the bloc’s greenhouse gas emissions, the chemicals industry plays a critical role in Europe’s climate transition, competitiveness and industrial resilience. This paper highlights where the Commission’s initiatives provide useful information for institutional investors, while identifying key gaps that could limit their practical value for investment decision-making.

• Provide a credible and decision-useful pathway for sector decarbonisation.
• Offer clarity on how current and future policies will support the transition.
• Set out financing mechanisms that can help mobilise private capital.