Exiting Petrochemicals: A Policy Guide for Financial Institutions

The document argues that the petrochemical industry's expansion is unsustainable and harmful, urging financial institutions to stop financing petrochemical expansion, require client transition plans, and adopt environmental justice policies. It highlights the severe health and environmental impacts in US 'sacrifice zones' and the financial risks of stranded assets.

• The US petrochemicals sector is expanding rapidly, with plans for over 120 new or expanded facilities, primarily in the Gulf Coast and Ohio River Valley regions.
• Petrochemical production has severe health impacts on fenceline communities, including increased risks of cancer, leukemia, and reproductive problems; in some Louisiana neighborhoods, cancer risk is more than three times the national average.
• The petrochemical industry contributes significantly to global emissions; primary plastic production alone generated an estimated 5.3% of total global greenhouse gas emissions in 2019, exceeding the combined emissions of commercial aviation and international shipping.
• Fossil-fuel-based nitrogen fertilizers contribute 2% to 5% of global emissions, with nitrous oxide emissions being 265 times more potent than carbon dioxide.
• Petrochemical facilities in the US are disproportionately located in 'sacrifice zones' affecting communities of color and low-income populations; for example, racial minorities make up 66% of residents on the fence line of these facilities despite being only 39% of the total US population.
• Financial institutions face significant 'transition risks' and 'physical risks' in the petrochemical sector, with Carbon Tracker estimating up to US$400 billion in potential stranded assets due to new regulations and shifting consumer demand.
• The guide recommends that financial institutions immediately prohibit all financing for petrochemical expansion and require clients to adopt transition plans aligned with a 1.5°C warming limit without relying on offsets or carbon capture.
• Financial institutions are urged to adopt regional exclusions for financing in the Gulf South and Ohio River Valley to end the funding of environmental racism.

APA

Center for International Environmental Law (n.d.). Exiting Petrochemicals: A Policy Guide for Financial Institutions. https://www.ciel.org/wp-content/uploads/2024/10/Exiting-Petrochemicals-Policy-Guide.pdf

Chicago

Center for International Environmental Law. Exiting Petrochemicals: A Policy Guide for Financial Institutions. n.d. https://www.ciel.org/wp-content/uploads/2024/10/Exiting-Petrochemicals-Policy-Guide.pdf.

Wikipedia

{{cite report |author=Center for International Environmental Law |title=Exiting Petrochemicals: A Policy Guide for Financial Institutions |url=https://www.ciel.org/wp-content/uploads/2024/10/Exiting-Petrochemicals-Policy-Guide.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centerforinternationalenvironmentallawndexiting, author = {{Center for International Environmental Law}}, title = {{Exiting Petrochemicals: A Policy Guide for Financial Institutions}}, institution = {Center for International Environmental Law}, url = {https://www.ciel.org/wp-content/uploads/2024/10/Exiting-Petrochemicals-Policy-Guide.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }