Chemicals
The chemical sector is the largest industrial energy consumer and the third largest industry subsector in terms of direct CO2 emissions. This is largely because around half of the chemical subsector’s energy input is consumed as feedstock – fuel used as a raw material input rather than as a source of energy.
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The sector’s substantial energy consumption is propelled by demand for a vast array of chemical products. Demand for primary chemicals – which is an indication of activity in the sector overall – has increased strongly in recent years. The Covid-19 crisis caused a year of stagnation, but the sector fully recovered with high growth rates in 2021.
Demand for plastics, mainly derived from high-value chemicals (HVCs), has been growing quickly and will continue to do so. Key plastic end-use sectors are packaging, construction and automotive applications. In many parts of the developing world, demand for plastics has just recently begun to gain momentum. Recycling of thermoplastics only counterbalances a small proportion of global demand for virgin plastics, thereby reducing demand for primary chemicals.
Material efficiency measures – including increasing plastics recycling, more efficient nutrient use in the case of ammonia fertiliser use, and reducing the use of single-use plastics – are important in the Net Zero Scenario to reduce the growth in chemicals demand relative to baseline trends. Recycling, in particular, will be important to reduce the need for primary production. Recycling rates vary widely, but globally only about 10% of plastic is recycled. While the share is increasing, progress needs to accelerate.
Demand for plastics, mainly derived from high-value chemicals (HVCs), has been growing quickly and will continue to do so. Key plastic end-use sectors are packaging, construction and automotive applications. In many parts of the developing world, demand for plastics has just recently begun to gain momentum. Recycling of thermoplastics only counterbalances a small proportion of global demand for virgin plastics, thereby reducing demand for primary chemicals.
Material efficiency measures – including increasing plastics recycling, more efficient nutrient use in the case of ammonia fertiliser use, and reducing the use of single-use plastics – are important in the Net Zero Scenario to reduce the growth in chemicals demand relative to baseline trends. Recycling, in particular, will be important to reduce the need for primary production. Recycling rates vary widely, but globally only about 10% of plastic is recycled. While the share is increasing, progress needs to accelerate.
Last updated Dec 14, 2022
Key findings
Direct CO2 emissions from primary chemical production and CO2 intensity in the Net Zero Scenario, 2000-2030
OpenDirect CO2 emissions increase, technological innovation is needed to get on track to Net Zero
Direct CO2 emissions from primary chemical production amounted to 925 Mt in 2021, a 5% increase with respect to the previous year, resulting from a production increase to levels above those in 2019. This is in tandem with a relatively stable primary chemicals CO2 intensity over recent years, at around 1.3 t CO2 per tonne of primary chemicals.
In the Net Zero Emissions by 2050 Scenario, CO2 emissions start to decouple from production in the coming few years, reaching a 17% CO2 emission reduction compared to 2021 by 2030 despite an increase in production. To get on track with the Net Zero Scenario, both the private and public sectors will need to achieve technological innovation, efficiency gains and higher recycling rates.
In the Net Zero Emissions by 2050 Scenario, CO2 emissions start to decouple from production in the coming few years, reaching a 17% CO2 emission reduction compared to 2021 by 2030 despite an increase in production. To get on track with the Net Zero Scenario, both the private and public sectors will need to achieve technological innovation, efficiency gains and higher recycling rates.
Explore more data
Analysis
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Energy Technology Perspectives 2023
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Climate Resilience for Energy Security
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Chemicals
Subsector
Not on track
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Industry
Sectoral overview
Not on track
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CCUS in Clean Energy Transitions
Our work
The IETS TCP focuses on energy use in a broad range of industry sectors with significant potential for emissions and cost savings. The IETS TCP work programme ranges from aspects relating to development of processes and energy technologies, to overall system analysis and energy efficiency in industry sectors.
