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The CIA gathers industry insights through a quarterly business survey to advocate for our members’ interests with policy makers, regulators and other stakeholders.
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- The Chemical Industry
The Chemical Industry
The chemical and pharmaceutical industry is fundamental to modern society. With an immense variety of products, from vital medicines and foods, the construction of buildings, to transport and leisure, the industry truly does have an impact on virtually every aspect of our daily lives.
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Policy areas
Energy and Climate Change
The UK was the first major economy to set a target to end its contribution to global warming, before 2050. This target and subsequent interim targets – a 68% reduction by 2030 and 78% reduction by 2035 – have supercharged climate policy development in the UK.
The UK chemical industry faces challenges due to high and rising energy costs, impacting its international competitiveness. Despite success in deploying renewable electricity, the industry now faces higher prices compared to global competitors due to pass-through costs including carbon pricing, renewable power subsidies, and network capacity increases. The sector relies on lower gas prices for competitiveness, but fears rising costs if asked to pay for decarbonising the heat supply like the electricity grid.
The CIA collaborates with members, government, and regulators to insulate the industry from energy transition costs while transitioning to a net-zero energy system. To mitigate emissions, the industry plans fuel-switching to hydrogen or electricity and retrofitting carbon capture equipment. CIA works to ensure supportive policies for these investments and to prevent net-zero transition costs from harming manufacturers.
The Chemical Industry: Delivering a low carbon future 24 hours a day
Shale Gas: The Facts
Accelerating Britain’s Net Zero Economy the chemical industry
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Position statements
Linking the UK and EU Emissions Trading Schemes
UK chemical sites compete in a global market, whilst facing comparatively higher energy and climate related policy cost. The UK’s chemical assets have dwindled over the last decade, most notably we have lost many of the facilities producing major chemical building blocks and polymers.
Electrifying Chemical Production
Whilst we welcome support through the existing British Industry Supercharger and proposed British Industry Competitiveness Scheme, these only fractionally reduce the electricity price to selected sectors and do not provide the level of reduction required to spur widespread industrial electrification.
Biogas for Industrial Decarbonisation
Following the EU’s lead the UK could quicky establish a market-based demand for biogas, reducing the need for public subsidy and allowing UK ETS operators to reduce their emission footprint. Such a move would boost UK industrial competitiveness and liberate public and private finance to invest in UK growth and decarbonisation.
Repurposing the Climate Change Levy in an era of decarbonisation
Since its introduction in 2001, the CCL has been instrumental in driving energy efficiency in the UK’s industrial sectors, but as we focus on the challenge of industrial decarbonisation, it is becoming clear that the CCL acts a blocker to investment in net zero manufacturing.
Circular chemicals and the UK Emissions Trading Scheme
The UK Emissions Trading Scheme (ETS) Authority is considering responses to its consultation of summer last year on the integration of greenhouse gas removals into the UK ETS.
Extending the UK Emissions Trading Scheme Cap Beyond 2030
Our sites can decarbonise if we create the right investment conditions for green production here in the UK, namely access to clean and competitively priced energy, together with policy that allows a clean manufacturer to pass through its green premium to the consumer.
UK Carbon Pricing and Border Adjustment
How UK carbon policy could be a driver of net zero investment, helping to secure the UK’s position as a global leader in industrial decarbonisation.
Energy and chemicals: Why it matters
This briefing document sets out why energy prices are fundamental to the survival of our industry, a key driver in investment decisions and key asks from the sector.
The future of the Industrial Energy Transformation Fund
The Chemical Industries Association (CIA) outlines key recommendations for the structuring of a new funding scheme for industrial decarbonisation, that would maximise impact and ensure the UK’s industrial heartlands can transition to a low-carbon future.
Energy and Climate Change
The chemical industry’s products and technologies will provide the foundation for net zero. We create the advanced materials that seed new low-carbon industries and drive green growth in the UK, but chemistry is energy-intensive and even in normal times the cost of energy is a challenge for UK manufacturers.
Be part of it
Members are invited to get involved with our various energy and climate change strategy groups, networks and issue teams, which include: Energy and Climate Change Policy Network, Industrial Emissions Policy Issue Team, Sustainability Strategy Group , Environment Network.
For further information, or to express an interest in joining, please contact our team Nishma Patel at PatelN@cia.org.uk or Rich Woolley at WoolleyR@cia.org.uk.
