1、Prepared by the Climate Bonds InitiativeEUROPEAN UNION CHEMICAL SECTOR TRANSITION POLICY BRIEFEuropean Union chemical sector transition policy brief Climate Bonds Initiative 2List of AcronymsBAU Business as usualCBAM Carbon Border Adjustment MechanismCCfDs Carbon Contracts for DifferenceCCS Carbon C

2、apture and StorageCCU Carbon Capture and UtilisationCCUS Carbon Capture,Usage and Storage CO2 Carbon dioxideCO2e Carbon dioxide equivalentsESG Environmental,Social,and Governance ETS Emissions Trading SystemEU European UnionGHG Greenhouse Gas EmissionsGWP Global Warming PotentialIEA International En

3、ergy Agency SBTi Science-Based Targets initiativeTable of contentsKey messages summary 21.Introduction 32.Decarbonisation levers for the chemicals sector 4Energy efficiency and resource efficiency 4Alternative feedstocks and circularity 4Electrification 5Carbon Capture Usage and Storage 53.Policy le

4、vers for the transition of the EU chemicals sector 6Standards,taxonomies,and sector criteria 6Carbon pricing to improve the business case for decarbonisation 6Demand reduction and circularity policies 7Electrification:policies to enhance interconnection and RE capacity 9Developing low-carbon hydroge

5、n production and use at scale 104.Conclusion 11Summary Policy Recommendations 12Key messages summary1.Chemicals are needed for more than 95%of the worlds manufactured goods,and their environmental impact based on a life-cycle approach is much higher than currently reported.Chemical manufacturing act

6、ivities,the sourcing of its raw materials(at present,fossil fuels)and the end-of-life treatment of chemical-based production has a significant environmental impact.For example,chemicals production in Germany,the largest chemical producer in the European Union(EU),accounts for 5%of the countrys total