Concerns on the Critical Chemicals Alliance Working Group 3 charter
The CCA charter drafted in Working Group 3 draws the wrong conclusions and solutions, not only for climate and the environment - but also for industry itself.
This shortcoming can be traced back to a few causes:
- The Charter’s data, information and statements are entirely unreferenced. Thereby the factual and logical stringency of the document cannot be assessed by either the WG3 members or any external reader.
- The document rests on the assumption that the EU’s chemical industry, especially its steam crackers, are rendered uncompetitive by high energy and feedstock prices, whereas cost differences are in most cases negligible, and in some cases irrelevant.
- Carbon pricing is viewed as a competitive disadvantage, whereas the ETS’s carbon price signal is currently largely muted by free allowances. CBAM is overlooked as the tool to effectively level the playing field when free allowances become less dominant. Conversely, the Charter deplores the absence of a business case for decarbonisation, while effective carbon pricing is universally regarded as an important lever to bring exactly that business case.
- The Charter draws attention to public financing sources, whereas private finance is and will remain the main provider of finance for investment.
The CCA’s WG3 should address these aspects transparently, question and correct some of its assumptions, and draw the logically necessary conclusions. The Charter could in that case be a beacon for the rebirth of a chemical industry that would protect jobs, investment, knowledge and climate.
Learn more in our full analysis.
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