A recent background paper outlines the necessary mix of technologies required to decouple the chemical and plastics industries from fossil raw materials by 2050.

Dechema Gesellschaft für Chemische Technik und Biotechnologie (Society for Chemical Engineering and Biotechnology), the plastics manufacturers’ association Plastics Europe Deutschland (PED), the Verband der Chemischen Industrie (German Chemical Industry Association, VIC) and the BKV published a joint background paper at the end of April on the technological transformation towards a circular carbon economy. It highlights the short- to medium-term technological pathways required to shift the raw material base away from fossil sources towards renewable carbon. Furthermore, it outlines the need for technological development and provides recommendations for policy support.
 
To achieve climate neutrality, the chemical industry aims to gradually transition its carbon base to renewable sources such as biomass, carbon-containing waste such as plastics, and carbon dioxide (CO₂). However, according to the background paper, there is as yet no common, overarching development strategy that serves as a compass for politics, administration, industry, science and society. The authors consider a technology-neutral approach to be important in this regard. This should take into account pathways, costs, scaling and integration with existing value chains, and be aligned with national and European strategies such as the National Circular Economy Strategy (NKWS), the Carbon Management Strategy (CMS) or the Circular Economy Act (CIA). The authors see a particular priority in reducing indirect greenhouse gas emissions from products of the chemical industry, as these are said to account for the largest share along the product chains. They consider the long-term reduction of the fossil carbon content to be particularly worthwhile, primarily through increased use of carbon from carbon-containing waste as a raw material base, especially from the recycling of plastic waste (using mechanical, physical and chemical technologies). In addition, biogenic residues and waste materials, as well as carbon dioxide (CO₂), should be utilised as raw materials. According to the authors, infrastructure for the individual recycling streams – including collection systems, processing methods and specific recycling processes – should be further expanded and optimised. Furthermore, reliable regulatory and licensing frameworks and mechanisms for market entry were required as a basis for industry investment.
 
To ensure the transition from fossil to renewable raw materials in the chemical industry, the authors of the background paper call not only for a reliable regulatory framework but also for infrastructure expansion and a stronger circular economy. Furthermore, they advocate technology-neutral support for recycling and carbon dioxide utilisation (CCU/CCS), as well as effective protection against carbon leakage. The regulatory framework would also need to be adapted so that a functioning EU-wide market can be established in the long term.
 
Further information: A summary and policy recommendations are available for download (in German) on the VCI website.
 
Sources:

• VCI press release (30.4.2026)
• Photo: © Nareeta Martin / Unsplash (symbolic image)