Europe's petrochemical industry faces severe challenges due to high energy and carbon costs, making it uncompetitive globally, according to Ineos Group founder Jim Ratcliffe.
Francine Lacqua, Rachel Graham, Alex Longley, and Bloomberg report for Fortune.
In short:
- Jim Ratcliffe, head of Ineos Group, claims Europe's chemical industry is at a significant disadvantage compared to the US due to high energy and carbon costs.
- Ratcliffe suggests that the current European market structure hampers competitiveness, leading to a bleak future for the sector.
- The industry's struggle is exacerbated by energy price volatility and regulatory challenges in Europe.
Key quote:
"Europe’s a mess for petrochemicals today. Everybody’s leaving petrochemicals in Europe, which I’ve never seen in my working life before."
— Jim Ratcliffe, founder of Ineos Group
Why this matters:
As Europe pushes towards greener energy solutions and stringent carbon reduction targets, the cost of energy and carbon emissions has surged. This shift, while essential for combating climate change, places European petrochemical companies at a disadvantage compared to regions with less stringent environmental regulations and cheaper energy sources, such as the United States and parts of Asia.
