Policy areas

Energy and Climate Change

The UK was the first major economy to set a target to end its contribution to global warming, before 2050. This target and subsequent interim targets – a 68% reduction by 2030 and 78% reduction by 2035 – have supercharged climate policy development in the UK. 

The UK chemical industry faces challenges due to high and rising energy costs, impacting its international competitiveness. Despite success in deploying renewable electricity, the industry now faces higher prices compared to global competitors due to pass-through costs including carbon pricing, renewable power subsidies, and network capacity increases. The sector relies on lower gas prices for competitiveness, but fears rising costs if asked to pay for decarbonising the heat supply like the electricity grid.

The CIA collaborates with members, government, and regulators to insulate the industry from energy transition costs while transitioning to a net-zero energy system. To mitigate emissions, the industry plans fuel-switching to hydrogen or electricity and retrofitting carbon capture equipment. CIA works to ensure supportive policies for these investments and to prevent net-zero transition costs from harming manufacturers.

Position statements

uk carbon pricing ps cover

UK Carbon Pricing and Border Adjustment

How UK carbon policy could be a driver of net zero investment, helping to secure the UK’s position as a global leader in industrial decarbonisation.

  • energy and chemicals ps cover

    Energy and chemicals: Why it matters

    This briefing document sets out why energy prices are fundamental to the survival of our industry, a key driver in investment decisions and key asks from the sector.

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    The future of the Industrial Energy Transformation Fund

    The Chemical Industries Association (CIA) outlines key recommendations for the structuring of a new funding scheme for industrial decarbonisation, that would maximise impact and ensure the UK’s industrial heartlands can transition to a low-carbon future.

  • Green hydrogen

    Energy and Climate Change

    The chemical industry’s products and technologies will provide the foundation for net zero. We create the advanced materials that seed new low-carbon industries and drive green growth in the UK, but chemistry is energy-intensive and even in normal times the cost of energy is a challenge for UK manufacturers.

  • hydrogen pipeline

    The Hydrogen Climate Solution

    As a country our energy supply needs to be decarbonised rapidly to help mitigate climate change. Hydrogen alongside clean electricity will be required.

Be part of it

Members are invited to get involved with our various energy and climate change strategy groups, networks and issue teams, which include: Energy and Climate Change Policy Network,  Industrial Emissions Policy Issue Team,  Sustainability Strategy Group , Environment Network. 

For further information, or to express an interest in joining, please contact our team Nishma Patel at PatelN@cia.org.uk or Rich Woolley at WoolleyR@cia.org.uk

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