The Renewable Carbon Initiative, or RCI, has released a report outlining ten policy proposals to expedite the transition to renewable carbon in feedstocks and materials.
These proposals, developed in collaboration with nova-Institute and RCI members, aim to bridge the gap between innovation and large-scale implementation.
According to the report, Europe can mitigate challenges by transitioning to renewable carbon sources like biomass, carbon capture and utilisation (CCU), and recycling to decarbonise its chemical sector.
The shift is not just an environmental necessity but a strategic move to boost Europe’s industrial competitiveness and global market resilience. Progress in renewable energy expansion is hindered by regulatory barriers, slow expansion, insufficient demand for sustainable products, and limited adoption of new technologies.
The defossilisation of Europe’s chemical industry requires commitment to defossilisation and an actionable policy framework that supports, guides and incentivises the transition to renewable carbon.
Transitioning renewable carbon into reality:
The EU policy promotes sustainable access to renewable carbon feedstocks and ensures global and sectoral competitiveness to successfully transition to renewable carbon.
According to the proposal, the EU’s transition to renewable carbon is crucial for its industrial future, global competitiveness, and climate neutrality. It unlocks economic benefits and unlocks innovation potential.
To achieve this, RCI’s policy proposals include suggestions to facilitate access to more waste as a feedstock, secure local access to biomass from agriculture, forestry and carbon capture, lead the way on international trade of renewable carbon feedstocks, balance regulation between energy and material uses to maximise synergies and ramp up availability of affordable renewable energy, e.g., by creating favourable conditions for alignment with defossilisation targets.
The RCI framework:
As per RCI, at the heart of the initiative is an overarching commitment to defossilisation – a high-level agreement that establishes the foundation on which all future European policies can build upon.
For instance, to create concrete market demand for sustainable products from renewable carbon, mandatory targets for the use of renewable carbon in chemicals and materials should be implemented. This can either be achieved by a novel regulation or adaptation of existing regulations such as the Packaging and Packaging Waste Regulation (PPWR), the End-of-Life of Vehicles Regulation (ELVR) or the Ecodesign for Sustainable Products Regulation (ESPR) – and an adaptation of the EU Emission Trading System (ETS) or an alternative European Carbon Utilisation Trading System (Cuts).
Significance:
The initiatives are aimed at bridging the gap between innovation and large-scale implementation. They support the target of a clean but competitive chemical industry in Europe with increased resilience and lower fossil dependence.
Backdrop:
According to RCI, the European chemical industry, a cornerstone of manufacturing with significant economic impact and a key enabler for many other industries, is at a crossroads.
The sector is facing an acute crisis due to global competition, rising energy costs and regulatory burdens. Once a leader in patents and production, Europe now trails behind China and the US, reflecting signs of declining competitiveness.
The sector’s heavy reliance on fossil fuels for raw materials (over 90 %) exacerbates its challenges, creating dependencies and limiting control over its carbon footprint at a time when Europe is grappling with the need for a green transition to ensure long-term prosperity and competitiveness.
As a result, there are clear signs of ongoing deindustrialisation in the EU chemical industry.
As highlighted by the EU Competitiveness Compass, “To shift the economy towards clean production and circularity, the EU needs to develop lead markets and policies to reward early movers.” The RCI’s policy proposals are in line with this vision by addressing key challenges and providing actionable solutions.
