FINANCING THE SOUND MANAGEMENT OF CHEMICALS BEYOND 2020

The report by IPEN and CIEL proposes a coordinated international tax on chemical feedstocks (basic chemicals) to generate sustainable funding for the sound management of chemicals and wastes, particularly in developing and transition countries. It argues that current funding mechanisms are inadequate and that the chemical industry must internalize the social and environmental costs of its products in accordance with the polluter pays principle.

• Developing and transition countries lack the necessary infrastructure and financial resources for sound chemicals and waste management, while chemical use and industry growth are shifting toward emerging economies.
• Current funding for chemicals management is severely inadequate; for example, the Global Environment Facility's tentative allocation of USD$392 million for the Stockholm Convention (2018–2022) is approximately 11 times lower than the estimated need of USD$4.4 billion.
• The global chemical industry is a massive economic actor with sales totaling US$5.7 trillion in 2017, a figure projected to double by 2030. China currently holds the largest share of global chemical sales at 37%, which is expected to reach 50% by 2030.
• The report proposes a coordinated tax on basic chemicals (feedstocks) levied by national governments in producing countries, with revenues directed to an international fund. A 0.5% tax on the production value of basic chemicals could raise approximately $11.5 billion annually.
• National-level cost recovery mechanisms are deemed insufficient because many management costs in developing countries stem from chemicals produced or sold elsewhere, and unilateral taxes may incentivize companies to shift production hubs.
• The proposed excise tax on basic chemicals is considered superior to income, asset, or transaction taxes because it is easier to administer, less prone to avoidance, and more aligned with the polluter pays principle by encouraging the internalization of social costs.
• The report identifies a wide range of public health and environmental costs associated with chemical mismanagement, including an estimated US$977 billion annually for childhood lead exposure in low- and middle-income countries.
• The United States previously implemented a sales tax on chemical feedstocks from 1980 to 1995 to fund its Superfund program, raising an average of US$331 million per year in its final four years.

APA

Eisen, N., Azoulay, D., & DiGangi, J. (2020). FINANCING THE SOUND MANAGEMENT OF CHEMICALS BEYOND 2020. Center for International Environmental Law. https://www.ciel.org/wp-content/uploads/2020/09/ipen-ciel-producer-responsibility-vf1_9e-web-en.pdf

Chicago

Eisen, Nathaniel, David Azoulay, and Joe DiGangi. FINANCING THE SOUND MANAGEMENT OF CHEMICALS BEYOND 2020. Center for International Environmental Law, 2020. https://www.ciel.org/wp-content/uploads/2020/09/ipen-ciel-producer-responsibility-vf1_9e-web-en.pdf.

Wikipedia

{{cite report |last1=Eisen |first1=Nathaniel |last2=Azoulay |first2=David |last3=DiGangi |first3=Joe |title=FINANCING THE SOUND MANAGEMENT OF CHEMICALS BEYOND 2020 |publisher=Center for International Environmental Law |date=September 2020 |url=https://www.ciel.org/wp-content/uploads/2020/09/ipen-ciel-producer-responsibility-vf1_9e-web-en.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{eisen2020financing, author = {Eisen, Nathaniel and Azoulay, David and DiGangi, Joe}, title = {{FINANCING THE SOUND MANAGEMENT OF CHEMICALS BEYOND 2020}}, institution = {Center for International Environmental Law}, year = {2020}, month = sep, url = {https://www.ciel.org/wp-content/uploads/2020/09/ipen-ciel-producer-responsibility-vf1_9e-web-en.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }