The global chemistry industry is a critical part of the climate change solution.

Our industry supplies many of the inputs, technologies and solutions needed to reduce emissions, as evidenced by the ICCA report Enabling the Future – chemistry innovations for a low carbon society.

In Australia, our industry will enable the transition to a lower-emissions future through the supply of emerging and future technologies that will drive Australia’s transformation to climate neutrality, including:

• Hydrogen and other alternative fuels
• Lower emission ammonia
• Batteries and energy storage
• Recycled polymers
• Harnessing waste CO₂ as a raw material
• Insulation and other energy efficient solutions for homes and the built environment
• Lightweight, energy-saving materials for vehicles and transport

Our industry is committed to delivering significant emissions reduction and supporting a circular economy through process and technology changes, including:

• advanced recycling
• combined heat and power
• carbon capture, utilisation and storage, and
• electric steam crackers

Examples of our members’ commitment to reducing emissions and contribution to a circular economy can be found in a recent announcement from our Industry Awards.

Climate Neutrality

The global chemistry industry has mapped a series of pathways for the sector to achieve carbon neutrality, an ambition it has committed to achieving by mid-century.

The new report commissioned by the ICCA (International Council of Chemical Associations), Pathways for the global chemical industry to climate neutrality, provides analysis of pathways and key enablers for the global chemistry industry to reach this important goal.

The Report identifies the following as the key enablers to chemical sector carbon neutrality:

• Recycling and Plastic Waste Management: As only 9 per cent of global plastic waste is currently recycled, increased recycling rates and improved waste management infrastructure are crucial.
• Sustainably Sourced Biomass: As the sector seeks carbon-neutral feedstock, sourcing biomass sustainably is essential to avoid adverse environmental impacts.
• Low-emission Hydrogen: Hydrogen is a cornerstone of chemical production processes, and the transition to low-emission hydrogen sources like green and blue hydrogen is vital.
• Carbon Storage and Low-emission Fossil Feedstock: Despite efforts to embrace bio-based and circular options, fossil feedstock and CCS will remain necessary for the foreseeable future.
• Affordable Low-emission Energy: Access to reliable and affordable low-emission energy is fundamental to meeting production needs, especially for processes requiring high temperatures.

As described in the report, the unique nature of the industry leads to specific challenges to achieve neutrality.

In Australia, the chemistry industry advocates for taking a long-term approach to energy planning, particularly considering the multiple-decade lifespan of capital-intensive chemical manufacturing investment.

The ICCA report aligns with Chemistry Australia’s Policy Priorities in calling for a technology-neutral approach.  It highlights that to achieve large-volume chemical production, a wide set of production technologies is needed.

A technology-neutral approach “promotes flexibility by considering all available technologies while minimizing capital expenditures and operating costs. Limiting certain technological choices would restrict the chemical industry’s ability to address the challenges related to achieving climate neutrality and lead to higher costs, potentially making climate-neutral chemical products more expensive and delaying the wider societal shift to climate neutrality.”*

It's important for Australia to begin planning and building energy systems that will deliver reliable and clean energy well beyond 2050, which means that all energy types have a role to play in meeting Australia’s future energy needs.

More information about our policy recommendations is available on our Policy Priorities pages.

^{*Page 7, Pathways for the global chemical industry to climate neutrality, ICIS and Carbon Minds for the International Council of Chemical Associations.}

Industry initiatives

The safety of workers and communities, and the protection of the environment, are the highest priorities of our association and our members.

As such, the industry celebrates our members’ achievements at our annual Chemistry Australia Industry Awards in the areas of:

• Net Zero Transition
• Health, Safety and Environment, and
• Circular Economy

Please visit our Awards page for more information.  

Chemistry Australia and its members have committed to establishing industry, health, safety and environment targets, which we’ll share with stakeholders through our annual Health and Safety reporting.