Towards a Net-Zero Chemical Industry: A Global Policy Landscape for Low-Carbon Emitting Technologies

The report analyzes policy support for low-carbon emitting technologies (LCETs) in the chemical industry across China, the EU, Japan, Saudi Arabia, the UAE, the UK, and the US. It finds that alternative hydrogen production is the most supported technology globally, while biomass utilization generally receives the least support. The analysis highlights a global trend of strengthening technology and infrastructure policies, though demand-side policies for sustainable goods remain underdeveloped. The document provides a policy-scoring model and a deployment matrix to guide strategic decision-making for industry players and policy-makers.

• Alternative hydrogen production is the most widely supported LCET, leading in five of the seven analyzed jurisdictions. In the European Union, it is on a par with electrification, and in the United States, it is on a par with carbon capture and utilization (CCU).
• Biomass utilization is generally the least supported LCET across the studied jurisdictions, often ranking just above or below waste processing.
• While technology and infrastructure policies are being strengthened globally, there is a significant gap in policies that stimulate market demand for sustainably produced goods.
• In the European Union, electrification is expected to lead decarbonization efforts before 2030, supported by the revised Renewable Energy Directive (REDII).
• The United States utilizes a tax credit system, specifically the 45Q credit, to support carbon capture, utilization, and storage (CCUS), which is a leading technology in the US alongside hydrogen.
• China's policy focus includes a 'double-control' system regulating energy intensity and consumption for existing operations, and a 'double-high' system for new projects' energy intensity and GHG emissions.
• Saudi Arabia is positioning itself as a frontrunner in hydrogen production, exemplified by the Helios project in NEOM, which aims for a production capacity of 650t of hydrogen per day and 1.2Mt of green ammonia per year.
• The United Kingdom is focusing on establishing CCUS in four industrial clusters known as 'SuperPlaces' by 2030, with a planned investment of up to £1 billion to capture up to 10Mt of CO2 annually.
• Japan's transition is heavily reliant on its Basic Hydrogen Strategy and the Green Growth Strategy, though it faces challenges due to high electricity prices and limited domestic resources.
• The United Arab Emirates is focusing on becoming a hydrogen hub and is investing $1 billion in a green ammonia facility in the Khalifa Industrial Zone Abu Dhabi (KIZAD).

APA

World Economic Forum (2022). Towards a Net-Zero Chemical Industry: A Global Policy Landscape for Low-Carbon Emitting Technologies. https://www3.weforum.org/docs/WEF_Towards_a_Net_Zero_Chemical_Industry_2022.pdf

Chicago

World Economic Forum. Towards a Net-Zero Chemical Industry: A Global Policy Landscape for Low-Carbon Emitting Technologies. 2022. https://www3.weforum.org/docs/WEF_Towards_a_Net_Zero_Chemical_Industry_2022.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Towards a Net-Zero Chemical Industry: A Global Policy Landscape for Low-Carbon Emitting Technologies |date=May 2022 |url=https://www3.weforum.org/docs/WEF_Towards_a_Net_Zero_Chemical_Industry_2022.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2022towards, author = {{World Economic Forum}}, title = {{Towards a Net-Zero Chemical Industry: A Global Policy Landscape for Low-Carbon Emitting Technologies}}, institution = {World Economic Forum}, year = {2022}, month = may, url = {https://www3.weforum.org/docs/WEF_Towards_a_Net_Zero_Chemical_Industry_2022.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }