The Transatlantic Petrochemical Trade is Undermining Europe’s Climate & Plastics Policies

The document examines the growth of the transatlantic trade in natural gas liquids (NGLs), specifically ethane and propane, from the US to Europe. It contends that this trade allows European plastics producers to bypass domestic fracking bans and climate regulations, effectively offshoring the high greenhouse gas emissions associated with extraction and transport. The author calls for the EU to expand its Methane Regulation, Emissions Trading System (ETS), and Carbon Border Adjustment Mechanism (CBAM) to cover the full petrochemical supply chain and imports.

• The European Union's reliance on fracked gas liquids from the US for plastics production threatens to undermine its climate commitments and health policies, as US regulations are significantly less protective than those in the EU.
• US steam cracking capacity for ethane increased from 26 million tons per year in 2005 to 45 million tpy in 2021, with plans for an additional 9.1 million tpy of capacity as of October 2021.
• The supply chain for US NGLs to Europe involves high-emission extraction in the Permian, Eagle Ford, and Appalachian basins, followed by energy-intensive fractionation and specialized shipping, particularly for ethane which requires refrigeration and pressurization.
• Several European countries have banned or placed moratoria on fracking—including France, Bulgaria, The Netherlands, Germany, Ireland, the United Kingdom, and Spain—yet some of these countries host facilities using imported US ethane and propane.
• The EU's current climate tools have significant gaps regarding petrochemicals: the Carbon Border Adjustment Mechanism (CBAM) excludes plastics and petrochemicals, and the Emissions Trading System (ETS) provides free allowances to the plastics industry as a sector at risk of 'carbon leakage'.
• The document recommends that the upcoming EU Methane Regulation must cover the full supply chain, including fossil fuel imports and petrochemical feedstocks, to prevent a major loophole in climate policy.

APA

Center for International Environmental Law (2021). The Transatlantic Petrochemical Trade is Undermining Europe’s Climate & Plastics Policies. https://www.ciel.org/wp-content/uploads/2021/12/The-Transatlantic-Petrochemical-Trade-is-Undermining-Europes-Climate-Plastics-Policies.pdf

Chicago

Center for International Environmental Law. The Transatlantic Petrochemical Trade is Undermining Europe’s Climate & Plastics Policies. 2021. https://www.ciel.org/wp-content/uploads/2021/12/The-Transatlantic-Petrochemical-Trade-is-Undermining-Europes-Climate-Plastics-Policies.pdf.

Wikipedia

{{cite report |author=Center for International Environmental Law |title=The Transatlantic Petrochemical Trade is Undermining Europe’s Climate & Plastics Policies |date=25 November 2021 |url=https://www.ciel.org/wp-content/uploads/2021/12/The-Transatlantic-Petrochemical-Trade-is-Undermining-Europes-Climate-Plastics-Policies.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centerforinternationalenvironmentallaw2021transatlantic, author = {{Center for International Environmental Law}}, title = {{The Transatlantic Petrochemical Trade is Undermining Europe’s Climate \& Plastics Policies}}, institution = {Center for International Environmental Law}, year = {2021}, month = nov, url = {https://www.ciel.org/wp-content/uploads/2021/12/The-Transatlantic-Petrochemical-Trade-is-Undermining-Europes-Climate-Plastics-Policies.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }