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.

Position statements

AdobeStock_358596652 (2)

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.

  • AdobeStock_1409181736

    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 ps cover

    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 ps cover

    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.

  • AdobeStock_572159708

    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.

  • Green hydrogen

    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

Find out more