‘Without a question there is no answer’

The European chemical industry has plenty of innovations and technical solutions at the ready, but without sufficient demand for more sustainable products, companies in Europe have no future. And that is a cause of great concern for Jan-Willem Toering.

At the start of December, a broad coalition of 76 parties from industry, business, trade associations, knowledge institutions and NGOs presented an urgent appeal to Wopke Hoekstra, our European climate commissioner. The message was clear: create demand!

What is the problem? The Dutch chemical sector stands at a crossroads. Innovations and technical solutions are ready to deliver the sustainability transformation we need, but one essential ingredient is missing: a market that demands those sustainable products. And if there is no market, we will look elsewhere (read: outside Europe) for customers. And that is something we, as members of the KNCV, should be deeply concerned about.

The chemical sector forms the backbone of countless value chains: from plastics to coatings and construction materials, from pharmaceutical ingredients to fuels — they all come out of our factories. We therefore have much to gain — and to lose. The cost price of more sustainable products is currently often still higher, meaning that companies leading the way right now are pricing themselves out of the market. If we want those investments to take place here, in Europe, we need to create an incentive: a market in which cleaner products become the norm.

‘We therefore have much to gain — and to lose’

The call for demand creation is no abstract policy document, but a concrete plan with a proven track record. As an example, the authors of the letter point to E10 petrol: by mandating a 10% sustainable biofuel blend, a market was created at the time and investment in sustainable production followed naturally. This same principle can be applied to a whole range of chemical products. Imagine a packaging company required to procure sustainable plastics, or a construction sector obliged to use circular materials. That builds confidence, drives innovation and ensures that the Netherlands does not fall behind.

The letter handed to Hoekstra on 12 December is a wake-up call. Without targeted action, we risk not only economic damage, but also a loss of knowledge, jobs and autonomy. And besides: who genuinely believes that those products can be produced more cleanly elsewhere? Demand creation is not protectionism in the Trump mould, but it is a necessary step on the road to European economic independence.

Time is pressing. Emission allowances for industry expire in 2040, and establishing new markets takes time. As the KNCV, let us support this signal from 76 parties to safeguard the future of our sector.

Because without demand, the answer never comes.

Jan-Willem Toering is director of the Royal Netherlands Chemical Society.

Respond? redactie@kncv.nl

 
Jan-Willem Toering
Jan-Willem Toering 14 January 2025

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