Chemistry in Transition: Charting solutions for a low-emissions chemical industry

This report by RMI analyzes the greenhouse gas (GHG) emissions of the US chemical industry, focusing on six primary chemicals: hydrogen, ammonia, methanol, ethylene, propylene, and benzene. It identifies 20 emissions reduction levers across four categories—alternative production methods, alternative heat sources, cleaner operations, and alternative feedstocks—and evaluates their current deployability and maximum potential to reach a net-zero sector by 2050.

• The US chemical industry contributes 4 to 5 percent of total US greenhouse gas emissions, with six primary chemicals—hydrogen, ammonia, methanol, ethylene, propylene, and benzene—accounting for approximately 65% of those emissions.
• RMI identifies 20 emissions reduction levers, but only 10 are commercially viable today. These near-term levers could reduce current sector emissions by 34%, though barriers such as infrastructure, zero-emission power, and feedstock availability limit their immediate impact.
• With targeted policy and infrastructure support, an additional 14% of emissions could be reduced in the near term, bringing the total near-term mitigation to nearly 48%. Key policy levers include increasing the 45Q tax credit for carbon storage from $85 to $95 per metric ton and implementing bottle bills and extended producer responsibility for mechanical recycling.
• Cleaner operations represent the highest near-term potential for emissions reduction, specifically through methane leak mitigation and high-purity carbon capture. Methane leak mitigation is noted as particularly attractive because it can be achieved at no net cost for 51% of sites.
• Decarbonizing process heat is a major challenge due to high temperature requirements. While low-temperature projects could reduce emissions by 2% near-term, high-temperature processes like steam cracking require technologies that are not yet ready to scale cost-competitively, such as e-crackers.
• Alternative production methods have the highest maximum emissions reduction potential at 95%, with hydrogen production from electrolysis alone potentially reducing the six chemicals' emissions by up to 63% relative to the baseline.
• The report highlights a significant discrepancy in methane leakage reporting; while the GREET model default is 0.94%, RMI assumes a US average of 2.2% based on a Stanford study, resulting in baseline emissions of 178 MMT CO2e, which is 13% higher than the GREET default.

APA

RMI (2025). Chemistry in Transition: Charting solutions for a low-emissions chemical industry. https://rmi.org/resources/chemistry-in-transition-charting-solutions-for-a-low-emissions-chemical-industry/

Chicago

RMI. Chemistry in Transition: Charting solutions for a low-emissions chemical industry. 2025. https://rmi.org/resources/chemistry-in-transition-charting-solutions-for-a-low-emissions-chemical-industry/.

Wikipedia

{{cite report |author=RMI |title=Chemistry in Transition: Charting solutions for a low-emissions chemical industry |date=17 January 2025 |url=https://rmi.org/resources/chemistry-in-transition-charting-solutions-for-a-low-emissions-chemical-industry/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2025chemistry, author = {{RMI}}, title = {{Chemistry in Transition: Charting solutions for a low-emissions chemical industry}}, institution = {RMI}, year = {2025}, month = jan, url = {https://rmi.org/resources/chemistry-in-transition-charting-solutions-for-a-low-emissions-chemical-industry/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }