Breaking the Fossil Chain: Decarbonizing the Chemical Industry

The chemical sector is essential to the global economy but also one of the most carbon-intensive, emitting 936 MtCO₂ in 2022. Its deep reliance on fossil fuels makes its decarbonization critical for the wider industrial transition. 

Using the CIA methodology, Carbon4 Finance assessed 69 companies across key subsectors, revealing major gaps in transition progress. Specialty chemical firms lead in flexibility and climate action, while fertilizer and petrochemical producers remain heavily exposed. 

Key solutions like low-carbon hydrogen, electrification, and bio-based inputs require massive investment and coordination. Yet Scope 3 emissions from raw materials remain a major blind spot.