Basic Chemicals

Reducing emissions in the chemical sector

The Basic Chemicals Criteria set the requirements for basic chemical production plants and projects to become Climate Bonds Certified. They also apply to companies on credible transition paths seeking to issue transition-labeled debt. 

The role of chemicals in climate change

The chemical sector is one of the world’s largest industries and the top industrial energy consumer. It uses 30% of industrial energy and contributes around 5% of global greenhouse gas emissions.

Basic chemicals like olefins, aromatics, methanol, and ammonia are essential for producing consumer goods and industrial materials. These chemicals account for 60% of the industry’s direct CO2 emissions, making decarbonising this sector vital for tackling climate change. 

Key decarbonisation solutions

The Criteria focus on reducing emissions in the most energy-intensive processes and the highest-emitting chemicals. Key solutions include: 

• Carbon capture, utilisation, and storage (CCUS).
• Electrification and cleaner fuel use.
• Alternative feedstocks for chemical production. 

Rather than creating standards for every chemical, the Criteria target the biggest emitters to maximise impact. They apply to eligible assets, projects, and companies producing organic and inorganic basic chemicals. 

By focusing on the largest sources of emissions, the Basic Chemicals Criteria aim to drive meaningful reductions in this critical sector.