Presentation on Innovations for Greenhouse Gas Reductions

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1 2009/SOM2/CD/028a Agenda Item: 7 Presentation on Innovations for Greenhouse Gas Reductions Purpose: Information Submitted by: American Chemistry Council (ACC) 8 th Chemical Dialogue Singapore 1 August 2009

2 Innovations for Greenhouse Gas Reductions Mary Irace APEC Chemical Dialogue August 1,2009 Greenhouse Gas Emissions and Savings of the Chemical Industry Study undertaken to know our facts and due to looming climate negotiations ICCA study relies on Life Cycle Analyses already prepared by chemical companies or associations or consortia Study conducted by McKinsey & Company Analysis of LCA studies by Oko Institute First global industry to undertake such an initiative.

3 Business of Chemistry Science & technology-based Powerful engine of innovation &creativity Enabling enterprise & supplier of solutions and products to other industry sectors Key role in reducing GHG emissions 3 Study s Key Findings Chemical industry greenhouse gas savings are more than twice emissions (2005) a :1 ratio. The industry s net abatement could improve to more than four times emissions (by 2030) The chemical industry is key to the innovations that will reduce greenhouse gas emissions

4 clcas* cover 8 broad end-use areas and are all externally validated Number Overall abatement potential Category Transportation Insulation Building Agriculture Consumer goods Power Lighting *clca = CO 2 e life cycle analyses Subcategory Automotive weight reduction Lubricants Lower friction Engine efficiency Aviation weight reduction Marine fuel reduction Building insulation Fridge insulation Construction material Piping Windows Feed supplements Fertilizer & crop Preservation Food production efficiency Food packaging Shopping bags Electronic components House ware Service wear Textile Low temp detergents District heating Solar power Wind power CFL lighting LED lighting of clcas All clcas externally reviewed by the Öko Institut Total life cycle CO 2 e emissions linked to the chemical industry amount to 3.3 Gt GHG life cycle emissions of chemical products, 2005 GtCO 2 e Extraction Production Disposal High GWP gases* Total * HFC-23, HFC-32, HFC-125, HFC-134a, HFC-143a, HAFC-1521, HFC-227ea, HFC-236fa, HFC-4310mee, CF 4, C 2 F 6, C 4 F 10, C 6 F 14, SF 6 ; GWP factors according to IPCC 1996 Source: IEA, EPA, IPCC, WEF ( Contribution of the chemical industry to greenhouse-gas reduction December 2007); McKinsey analysis

5 The main contributors are insulation, fertilizer & crop, and lighting 2005 MtCO 2 e Net abatement volume per chemical application Not explicitly calculated No realistic alternative available Source: ICCA/ McKinsey analysis Insulation 2,400 Lighting Marine antifouling 190 Synthetic textile 130 Automotive weight 120 Low-temp. detergents 80 Engine efficiency 70 Piping 70 Wind power 60 District heating 60 Green tires 40 Solar power 40 Other 230 Sub-total 4,410 Fertilizer & crop 1,600 Total 6,010 1 : : Net 3,560 5,160 w/o fertilizer & crop Innovations for Greenhouse Gas Reductions The McKinsey analysis also looked ahead to emissions scenarios in 2030, and examined two situations: A Business as Usual Scenario ( BAU ), and An Abatement Scenario

6 MtCO 2 e volume per chemical application Not explicitly calculated No realistic alternative available grows to 13.8 Gt in 2030 under BAU assumptions (with the fertilizer case) Source: ICCA/ McKinsey analysis Insulation Lighting Solar power Biofuels Wind power Marine antifouling Synthetic textile Automotive weight Engine efficiency Green tires Low-temp.detergents Piping District heating Other Sub-total Fertilizer & crop 1 : 1 0 : 1Total 5,600 3, ,950 2,500 15, ,700 11,250 13,750 w/o fertilizer & crop 2030 BAU 2005 MtCO 2 e volume per chemical application Not explicitly calculated No realistic alternative available Source: ICCA/ McKinsey analysis Additional 4.7 Gt abatement potential beyond BAU identified 2030 beyond BAU Insulation 2030 BAU Lighting Solar power 6,800 Biofuels 4, Wind power 2,000 CCS 1,000 Marine antifouling Synthetic textile Automotive weight 300 Green tires 300 Low-temp. detergents Engine efficiency Piping 50 District heating 50 Other 200 Fertilizer & crop 17,150 2,500 19,650 Sub-total 0 1 : 1 1,200 Total 15,950 18,450 0 : 1 w/o fertilizer & crop Net

7 Greenhouse Gas Emissions and Savings of the Chemical Industry ICCA Web Site -