A report published today on the impact of the Paris Agreement concluded during COP21 on Europe’s chemical industry points to a need for a clear and coherent vision for innovation towards the low carbon economy. The authors, European consultancy Ecofys, find that despite this need, most of the Nationally Determined Contributions (NDCs) set out in the ground-breaking climate agreement leave out the need for low carbon innovation leaps.

The Paris agreement – which was strongly endorsed by the EU chemicals sector - represents a unique achievement by collecting the intentions of almost every country worldwide towards mitigating manmade climate change. The agreement aims to limit global warming to well below 2°C and to pursue efforts to limit the temperature increase to 1.5°C.

However, the report concludes that the climate policy impact of the NDCs and the Paris agreement will not improve the competitive position of the European chemical industry in the near term, in light of the fact that Europe already has the most stringent climate policies of any global region. It further recommends a clearer European vision on innovation and supporting policies to ensure the industrial value chains needed for the low carbon transition remain available in Europe, supported by effective carbon leakage protection measures.