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Accelerating zero and low emission technologies in hard-to-abate sectors

Chemicals

The chemical industry is transitioning away from fossil-fuel based production by adopting carbon capture, utilization, and storage (CCUS), electrolytic hydrogen, direct electrification, renewable feedstocks, and bio-based bioplastics. This includes sustainable ammonia, and methanol, production, renewable electricity adoption, circular economy approaches, and improved plastic recycling techniques.

How this solution relates to the action agenda

Axis: Transitioning Energy, Industry, Transport

Key Objective: Accelerating zero and low emission technologies in hard-to-abate sectors

Why it matters

Chemicals account for 4% of global CO2e, and global chemical production is expected to grow 46% by 2050 compared to 2022. Transitioning the sector enables decarbonization of downstream sectors including agriculture, materials, shipping, iron and steel. Bio-based alternatives can cut GHG emissions by up to 45% compared to fossil equivalents, while circularity can reduce overall chemical demand.

Sources:

Climate Champions Team, 2023, 2030 Climate Solutions Implementation Roadmap;

Chemical Industry Journal, 2024, Decarbonising the chemical industry;

IEA, 2023, Chemicals Tracking Report;

RMI, 2025, Chemistry in Transition

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