Petrochemicals and climate change: Powerful fossil fuel lock-ins and interventions for transformative change

With the risk of climate breakdown, pressure is increasing for all sectors of the economy to break with fossil fuel dependence and reduce greenhouse gas emissions. In this context, the chemical industry requires more focused attention as it uses more fossil-fuel based energy than any other industry and the production of chemicals is associated with very large emissions. Beyond the climate crisis, the chemical industry significantly impacts several critical dimensions of sustainability, including the planetary boundaries for novel entities, biosphere integrity, and ocean acidification.

In this report, we focus on the petrochemical sector, which represents the largest share of the chemicals industry and is generally understood to refer to the part of the industry that relies on fossil-fuel feedstocks from oil, gas, and coal. The petrochemicals sector produces chemicals mainly used for plastics and fertilisers, but the products also end up in paints, pharmaceuticals, pesticides, and other applications.

This report provides a critical exploration of the petrochemical sector to strengthen awareness of its relevance to the climate crisis and to provide tools and recommendations for decision-makers in different domains to initiate, support, and accelerate much-needed transformation. The report highlights the rapid expansion of the petrochemical sector as well as the range and growth of economic, infrastructural, and political interlinkages with the fossil fuel extraction sector. It argues that these developments and dynamics are crucial to understanding pathways, strategies, and interventions for a low-carbon transition for petrochemicals.