GLOBAL IMPACT COALITION
The sheer scale of the chemical sector’ s emissions is daunting.
These emissions primarily stem from two sources: energy use, which accounts for 60 % of emissions due to the sector’ s reliance on fossil fuels for high-heat processes, and chemical reactions themselves, which contribute the remaining 40 % of emissions as byproducts.
Given the centrality of chemicals in everything from smartphones to medical equipment, addressing these emissions is critical to meeting global climate goals. The challenge, however, is not just technical but systemic.
“ To reach net zero, it’ s not just about cleaner technologies. Rather, it’ s about reimagining how industries work together,” Charlie asserts.
GIC’ s approach is to break down silos and foster pre-competitive collaboration, enabling companies to pool investment, share risk and accelerate the development and deployment of breakthrough solutions.
Key technologies and financial tools for emissions reduction The path to net zero in the chemical industry involves a suite of emerging technologies.
Electrification of core processes, such as an electric steam cracking furnace piloted by GIC members BASF and SABIC, can cut emissions by up to 90 % compared to traditional methods. Green hydrogen – produced by electrolysing water with renewable energy – offers a carbon-neutral feedstock and energy source for various chemical reactions.
“ To reach net zero, it’ s not just about cleaner technologies. Rather, it’ s about reimagining how industries work together”
CHARLIE TAN, CEO, GLOBAL IMPACT COALITION
166 June 2025