Net Zero Industry Tracker 2024 Primary Chemicals

PRIMARY CHEMICALS Key performance data 2023450,451,452,453,454 2.5%0.94 Gt CO2e6%1 .27 Mt CO2e/Mt Contribution to global CO2e emissionsScope 1 and 2 emissions Emissions increase (2019-2023)Emissions intensity 2.2%2.3 times 2%$6.5 trillion Decrease in emission intensity (2019-2023) Demand increase in NZE scenario by 2050, compared to 2023Current low-emission productionAdditional investment required for net zero by 2050 Performance summary –The emission intensity has been stable at approximately 1.3 Mt CO2e /Mt chemicals455 for the last five years. This is primarily due to the industry prioritizing addressing supply chain disruptions and commodity price volatility. –The absolute emissions456 for primary chemicals has seen 6%457 rise in the 2019-2023 period, driven by an increase in demand for ammonia by 4%, methanol by 19% and high-value chemicals by 9%.458 –Low emission production accounted for only 2%459 of the total emission production worldwide in 2022. Only 8% of current plastic production is through recycling.460 –In 2022, the energy mix for primary chemicals was composed of 55% natural gas, 36% coal, 7% electricity, 1% oil and 0.6% biofuels.461 –Current infrastructure stands at less than 1% for CCUS, clean power and hydrogen of the required infrastructure capacity by 2050 for net-zero emissions.462 Future emissions trajectory –The industry is forecasted to reduce emissions intensity by 28%463 by 2030 compared to 2023 levels, according to IEA Net Zero Scenario. Absolute CO2e emissions are expected to be 0.77 Gt in 2030.464 –90%465 of publicly traded companies in primary chemicals industry consider climate change in their operational decision-making processes, and 58%466 of companies have approved Science Based Targets initiative (SBTi) targets. Net-Zero Industry Tracker: 2024 Edition 2