| 1. |
- Bauer, Fredric, et al.
(författare)
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Petrochemicals and climate change: Powerful fossil fuel lock-ins and interventions for transformative change
- 2023
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- With the risk of climate breakdown, pressure is increasing for all sectors of the economy to break with fossil fuel dependence and reduce greenhouse gas emissions. In this context, the chemical industry requires more focused attention as it uses more fossil-fuel based energy than any other industry and the production of chemicals is associated with very large emissions. Beyond the climate crisis, the chemical industry significantly impacts several critical dimensions of sustainability, including the planetary boundaries for novel entities, biosphere integrity, and ocean acidification. In this report, we focus on the petrochemical sector, which represents the largest share of the chemicals industry and is generally understood to refer to the part of the industry that relies on fossil-fuel feedstocks from oil, gas, and coal. The petrochemicals sector produces chemicals mainly used for plastics and fertilisers, but the products also end up in paints, pharmaceuticals, pesticides, and other applications. This report provides a critical exploration of the petrochemical sector to strengthen awareness of its relevance to the climate crisis and to provide tools and recommendations for decision-makers in different domains to initiate, support, and accelerate much-needed transformation. The report highlights the rapid expansion of the petrochemical sector as well as the range and growth of economic, infrastructural, and political interlinkages with the fossil fuel extraction sector. It argues that these developments and dynamics are crucial to understanding pathways, strategies, and interventions for a low-carbon transition for petrochemicals.
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| 2. |
- Bauer, Fredric, et al.
(författare)
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Petrochemicals and Climate Change : Tracing Globally Growing Emissions and Key Blind Spots in a Fossil-Based Industry
- 2022
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- With the risk of climate breakdown becoming ever more pressing as the world is on track for 2.7 degrees warming, pressure is increasing on all sectors of the economy to break with fossil fuel dependence and reduce greenhouse gas (GHG) emissions. In this context, the chemical industry and the production of important basic chemicals is a key sector to consider. Although historically a driver of economic development, the sector is highly dependent on fossil resources for use as both feedstock and fuel in the production of as well organic as inorganic chemicals. The chemical industry demands both petroleum fractions and natural gas. Petroleum fractions such as naphtha and petroleum gases are used as feedstocks for building block chemicals and polymers (e.g., benzene and polyethylene), while natural gas is used for methanol and ammonia. Indeed, the sector is associated with both large process emissions as well as energy related emissions. Our results demonstrate that in 2020 direct GHG emissions from the petrochemical sector amounted to 1.8 Gt CO2eq which is equivalent to 4% of global GHG emissions. Indirect GHG emissions resulting from the activities in other industries supplying inputs for the petrochemical industry accounted for another 3.8 Gt CO2eq. The petrochemical industry is thus associated with a total of 5.6Gt CO2eq of GHG emissions, equivalent to ~10% of global emissions. Over the past 25 years, emissions associated with petrochemicals have doubled and the sector is the third most GHG emitting industry. This increase is fueled by large growth of petrochemicals production as well as growth in regions with high indirect emissions, i.e., in energy systems with high dependence on coal and other fossil fuels. Over the past decades, the industry has grown rapidly in the Asia-Pacific region especially in China which in 2020 was the source for about 47% of global GHG emissions associated with petrochemicals. USA accounts for 6% of the emissions from the industry and Europe for 5%. The BRIC group of countries, which except for China also includes Brazil, India, and Russia, currently accounts for 57% of GHG emissions from petrochemicals, showing that the emissions from this sector are more geographically clustered in these countries than emissions from other sectors.Proper disaggregated and comparative analyses of key products is currently not possible. Data confidentiality and a high reliance on proxy data limit the reliability of LCA and stands in the way of mapping climate impacts. A strong demand of chemicals life cycle inventory (LCI) data for environmental footprinting has resulted in a general increase of chemicals data in many LCI databases, but the energy demands both for heat and electricity are typically not well-documented for production processes outside the main bulk chemicals. If incinerated at end-of-life plastics and other chemical products will emit embodied carbon as CO2 and if landfilled there is a risk of slow degradation with associated methane emissions. Global estimates based on most LCA datasets will thus significantly underestimate emissions from the chemical industry.The multitude of value chains dependent on the petrochemical industry makes it an important contribution to life cycle emissions in many sectors of the economy. Petrochemicals are used as an intermediate input in many industries and the emissions associated with them thus propagate through the economy, with final demand in manufacturing industries and services being associated with the largest shares of emissions from chemicals. The impacts and emissions downstream in value chains is however poorly understood and disclosure by petrochemical producers is lacking and insufficient. While disclosure of emissions in the industry has increased over the past decades, it remains partial and shows inconsistencies over time. This is due to issues such as different reporting standards, large discrepancies in the extent of disclosure as well as various other gaps and inconsistencies in reporting. This holds for all scopes, although Scope 1 emissions are better covered. Only some firms disclose information about downstream Scope 3 emissions including end-of-life for final products. Emission targets set by firms in the industry do not correspond to the challenge of large and rapid emission reductions. Many targets include only parts of operations and transparent, standardized target-setting is lacking. Reported emission reduction initiatives to achieve targets are far from sufficient focusing mainly on efficiency improvements or insubstantial parts of the operation. Shifting to renewable energy is a key for rapid emission reductions in the industry, yet few firms report strategic targets for this shift. As the industry has historically been closely linked to and integrated with the energy sector it holds a great potential for engaging with the deployment and adoption of renewable energy, although this implies a transformation of the knowledge base and resource allocation in the industry which is still focused on fossil fuels. Roadmaps and scenario analyses show that apart from a shift to renewable energy, a transformation of the industry relies on the deployment of key technologies which are not yet fully developed. This includes new technologies for hydrogen production, e.g., electrolytic (green) hydrogen or hydrogen produced with carbon capture and storage (CCS). New chemical synthesis pathways based on captured carbon, so called carbon capture and utilization (CCU) is also highlighted, but the massive demand for renewable energy associated with this pathway is a significant barrier to its adoption in the near term. The report shows how efficiency improvements continues to be the main focus for reducing the climate impact of petrochemicals, but that this is a completely inadequate approach for achieving the emissions reductions necessary in the coming decades. Breakthrough technologies are unlikely to be deployed at a rate consistent with international climate targets, and there is a great risk in relying on the promises of technologies which are yet to be proven at scale. The large knowledge gaps that remain are key barriers for effective governance of the transition.
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| 3. |
- Skovgaard, Jakob, et al.
(författare)
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Finance for Fossils – the Role of Public Financing in Expanding Petrochemicals
- 2022
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Ingår i: SSRN Electronic Journal. - : Elsevier BV. - 1556-5068.
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Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- The petrochemicals industry (mainly plastics and fertilizer production) is expanding, despite increasing attention to the environmental impact of petrochemicals. In our paper, we explore the role public finance plays in the petrochemicals industry. We do so by mapping the public and private financial flows into large-scale petrochemical projects for the decade 2010-20 and discuss the role of public financial institutions for the development of the industry globally. Secondly, we provide a detailed analysis of the roles international and domestic public finance has in enabling two case studies of prominent petrochemical projects. Namely the Sadara plant in Saudi Arabia and the Surgil plant in Uzbekistan. The cases are illustrative of the dynamics of state interest and involvement in fossil fuel producing countries as well as of lending and guarantees from foreign export credit and development finance institutions, and how such public finance plays an important role in leveraging private finance. Our findings show how public finance for petrochemicals is highly globalized and to a large degree originates in developed countries. As these industrial infrastructures are designed to last decades, the public finance thus strongly contributes to the carbon lock-in of the sector and limits the possibilities for low-carbon investments needed to comply with the UN Paris Agreement.
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| 4. |
- Skovgaard, Jakob, et al.
(författare)
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Finance for fossils – The role of public financing in expanding petrochemicals
- 2023
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Ingår i: Global Environmental Change. - : Elsevier BV. - 0959-3780. ; 80
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Tidskriftsartikel (refereegranskat)abstract
- The petrochemicals industry (mainly plastics and fertilizer production) is expanding, despite increasing attention to the environmental impact of petrochemicals. In our paper, we explore the role public finance plays in the petrochemicals industry. We do so by mapping the public and private financial flows into large-scale petrochemical projects for the decade 2010-20 and discuss the role of public financial institutions for the development of the industry globally. Secondly, we provide a detailed analysis of the roles international and national public finance has in enabling two prominent petrochemical projects: namely the Sadara plant in Saudi Arabia and the Surgil plant in Uzbekistan. The cases are illustrative of the dynamics of state interest and involvement in fossil fuel producing countries as well as of lending and guarantees from foreign export credit agencies (ECAs) and development finance institutions, and how such public finance plays an important role in leveraging private finance. Our findings show how public finance for petrochemicals is highly globalized and to a large degree originates in developed countries. As these industrial infrastructures are designed to last decades, the public finance thus strongly contributes to the carbon lock-in of the sector and limits the possibilities for low-carbon investments needed to comply with the UN Paris Agreement.
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| 5. |
- Tilsted, Joachim Peter, et al.
(författare)
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Narrating decarbonisation: Stories of climate action in the petrochemical industry
- 2022
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Konferensbidrag (refereegranskat)abstract
- Despite its role in ensuring the ubiquity of fossil fuels in modern society, the petrochemical sector has long flown under the public radar in energy and climate debates. However, faced with increasing pressures from its involvement in driving multiple and intersecting ecological crises, firms in the petrochemical industry are seeking to make sustainability a core part of their public image. Although recent climate commitments might signal a start towards a low-carbon transition, there is a risk that industry leaders follow the pattern that has consistently been the case throughout their history and only pay lip service to current trends to ease legislative pressure, secure financing and continue business as usual, legitimizing the strong carbon lock-in within the sector. Therefore, this paper aims to identify and explore commonly invoked industry narratives of climate action. To do so, we focus on climate communication from the largest petrochemical companies, most of which also are fossil fuel extractors, mapping their discursive strategy. We argue that the set of strategic narratives that we identify portray the petrochemical industry as of unquestionable societal importance, promoting the idea that stringent regulation is not needed, and that criticism leveraged against the industry are based on misunderstandings. This discourse strategy works to reduce pressure for deep mitigation cuts while repositioning the industry as part of the solution. Relating this to the broader literature on the use of discursive power and corporate framing of climate change, we compare the discursive strategy around petrochemical production to that of fossil fuel extraction. Despite relying on fossil feedstock and being solidly placed in the fossil-based energy order with strong historical, knowledge-based, and economic linkages to oil, gas, and coal, discursive strategies in key aspects. In making this argument, we show how downstream actors work to legitimize continued exploration and production of fossil fuels.
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| 6. |
- Tilsted, Joachim Peter, et al.
(författare)
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Petrochemical transition narratives: Selling fossil fuel solutions in a decarbonizing world
- 2022
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Ingår i: Energy Research & Social Science. - : Elsevier BV. - 2214-6326 .- 2214-6296. ; 94
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Tidskriftsartikel (refereegranskat)abstract
- Being integral to the fossil-based energy order and as a key driver of multiple and intersecting ecological crises, the petrochemical industry faces increasing pressures to transform. This paper examines how major petrochemical companies navigate these pressures. Drawing from literatures on discursive power, narratives, and neo-Gramscian political economy, we introduce the concept of narrative realignment as a nuanced iteration of corporate discursive power that reframes problems of and solutions to green transitions. Specifically, we identify and explore common transition-related narratives, analysing climate and sustainability communications from the largest producers in the petrochemical sector. We argue that these strategic narratives portray the petrochemical industry as key to a successful transition and fend off criticisms by reducing them to misunderstandings. This framing works to reduce pressures for deep mitigation while repositioning the industry as part of the solution. Building on these findings, we demonstrate how petrochemical transition narratives relate to but also diverge from the position of fossil fuel extractors. Despite relying on fossil feedstock and being solidly placed in the fossil economy, petrochemical majors increasingly focus on repositioning themselves proactively as transition enablers. The argument illustrates the work of downstream actors to legitimize the existing energy order.
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