Meeting with
BASF and
CEFIC,
Ref. Ares(2020)7729037 - 18/12/2020
Online, 5 November 2020, 10h30-11h15
Steering brief
Scene setter
You will have a virtual meeting with the
CEFIC and
BASF,
. The concept is a video dialogue between the two of you, which
would be open to be watched by the CEOs and high-level executives of the wider
European chemical industry. It will be moderated by
(
), who
you met in Amsterdam at the CEFIC convention two years ago.
Mr
would like to discuss the ‘
at least 55%’ target for 2030 and the
Chemical Strategy for Sustainability under the Green Deal as these two topics are
crucial for the future of the chemicals sector. Other topics which may be raised include the
chemical industry and circular economy as well as the illegal import of hydrofluorocarbons
(HFCs).
CEFIC positions
On decarbonisation of the chemical sector
BASF is a large chemical company actively exploring how to reduce its CO2 emissions
and has already joined the European Clean Hydrogen Alliance. BASF could therefore
potentially be active on hydrogen supply (by pyrolysis) and take-up of renewable
hydrogen in its processes.
CEFIC supports the Green Deal and Europe's ambition to become climate neutral by
2050. To achieve the climate targets, CEFIC has consistently underlined the need for an
‘enabling framework’. For CEFIC, the main pillars of such a framework are an effective
mechanism to
avoid carbon leakage, the availability of abundant and affordable
renewable electricity and increased
recycling and circularity.
CEFIC supports the EU ETS as a ‘key instrument aiming to achieve agreed emission
reductions at the lowest cost’. It voiced support for the dynamic free allocation principle.
, CEFIC’s
, has recently advocated that all funding coming
from the EU ETS should be
returned to innovation in the sectors inside the ETS. CEFIC
has expressed its
dissatisfaction with the exclusion of the ‘organic chemicals’ sector from the list of sectors eligible to receive indirect cost compensation.
Some chemicals sub-sectors have repeatedly expressed
concerns about losing
eligibility for State aid following the revision of the revised
ETS-related State aid
Guidelines adopted in September 2020. They will enter into force on 1 January 2021.
Petrochemicals which are at the origin of many important value chains and account for
over 25% of total EU chemicals sales, and
fertilisers which account for about 5% of EU
chemicals sales, are the most prominent among them. Both these sub-sectors have lost
eligibility as a result of the revision.
CEFIC would not prefer a
Carbon Border Adjustment Mechanism (CBAM) for the
chemical sector:
Being first and foremost an exporting sector – the EU chemical industry may be
penalised by possible retaliation measures adopted by countries whose exports to the
EU will be affected by the CBAM.
The extremely interlinked nature of the chemical industry, with many value chains
relying on trade with intermediate inputs, may lead to CBAM affecting the
competitiveness of its own products.
CEFIC considers that any future CBAM measures would need to be
complementary to
the ETS free allocation system. CEFIC is not necessarily in favour of a cumulative
Steering brief
1/4
Meeting with
BASF and
CEFIC,
Online, 5 November 2020, 10h30-11h15
Objectives of the meeting
What we want:
Encourage industry stakeholders to engage with national authorities in preparation
of the National Recovery and Resilience plans.
Explain to BASF/CEFIC the overall approach of the Commission to the chemical
recycling of plastics.
What the interlocutor wants:
An exchange of views and the opportunity to put questions to you.
Key messages
On the decarbonisation of the chemical sector
The EU stands ready to support the chemical industry’s efforts towards
decarbonisation, including through support to development and improving market
readiness and uptake of promising technologies:
For
instance,
Horizon Europe working in synergy with the
Innovation Fund under
the EU ETS and the
InvestEU Fund will become important enabling tools in this
direction.
CEFIC’s members should therefore be encouraged to
engage with the relevant
national authorities to be able to benefit from the funding available under the
Recovery and Resilience Facility.
The chemical industry is one of the key energy-intensive industries that we wish to
involve in the
Alliance on Low-carbon Industries.
On the Chemicals strategy for sustainability
The Strategy sets out an ambitious regulatory agenda. It will be
rolled out in a phased
manner, through targeted modification of chemicals legislation, including REACH, and
will build on impact assessments.
The transition to chemicals that are
safe and sustainable by design is not only a
societal urgency but also a great economic opportunity. The Strategy will steer and
support industry in its green transition. Support exists in the form of
Member State
investments in projects facilitating the green and digital transition and the
Commission’s
financial instruments for R&D programmes,
re-skilling and
innovative business models to name just a few.
The Commission cannot implement the Strategy on its own.
Expert and stakeholder
input is needed. That is why we will establish a
high-level round table with experts
from industry, science and civil society to realise the Strategy’s objectives in
dialogue will all stakeholders concerned. It will focus on how to make the chemicals
legislation work more efficiently and effectively, but also on how to boost the
development and uptake of innovative safe and sustainable chemicals across sectors.
Coherence in the regulatory processes will
signal the direction and secure long-
term investments, which will enable our industry to reap the first-mover advantage.
On the chemical industry and the circular economy
The European Commission is ready to encourage investments in chemical recycling of
plastics, as part of our strategy to economic recovery, if we are truly convinced this is
also sustainable recovery.
Steering brief
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Meeting with
BASF and
CEFIC,
Online, 5 November 2020, 10h30-11h15
There is a ne
ed to demonstrate the environmental benefits of chemical recycling
of plastics based on robust data and evidence. Chemical recycling needs to prove
that it is better than landfilling or incineration, when looking at all environmental aspects
(including CO2 emissions).
On illegal HFC imports
Since 2019, targeted actions to prevent illegal imports have been taken. The
Commission has in particular focused on:
Rapidly building the IT system ‘
EU Single Window for Customs’, which ensures
controls become more effective.
Insisting clearly with Member States at all levels that good implementation is
needed, including though
dissuasive penalties for illegal activities;
Developing
and
exchanging best practices on how to step up enforcement and
ensure dissuasive penalties for illegal activities.
Contact – briefing coordination:
, tel.:
Steering brief
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