RCI Unveils Policy Roadmap to Shift EU Chemical Sector to Renewable Carbon
The European chemical industry, a vital part of the continent’s economy, is facing major challenges including global competition, high energy prices, and increasing regulatory pressure. With over 90% of its raw materials still derived from fossil fuels, the sector’s dependence is limiting its ability to lead in sustainability and innovation. Signs of deindustrialisation are emerging as Europe loses ground to the US and China.
However, a shift to renewable carbon sources—biomass, captured CO₂, and recycling—offers a strategic opportunity. It would not only cut carbon emissions but also help restore industrial strength and competitiveness. Yet, this transition is slowed by regulatory bottlenecks, slow renewable energy adoption, and low demand for sustainable materials.
To address this, the Renewable Carbon Initiative (RCI), in collaboration with the nova-Institute, has released a new report with ten targeted policy recommendations. These are aimed at closing the gap between innovative solutions and commercial scale adoption.
Key proposals include:
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A clear EU-wide commitment to defossilisation.
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Mandatory renewable carbon targets in chemicals and materials via adaptations to existing EU regulations (e.g. PPWR, ELVR, ESPR).
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A proposed Carbon Utilisation Trading System (CUTS) to complement or adjust the existing Emission Trading System (ETS).
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Facilitating access to waste, biomass, and captured carbon as feedstocks.
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Favourable trade conditions and energy regulations to support renewable material use.
The report emphasizes that defossilisation is not just an ecological need—it’s critical for Europe’s industrial future, innovation potential, and global relevance. The EU Competitiveness Compass supports this direction, calling for policies that reward early movers in clean and circular production.
Download the full report:
RCI Policy Proposals Report – PDF
