Europe Risks Offshoring Industry, Jobs, and Emissions
- Sir Jim Ratcliffe wrote to Ursula von der Leyen warning of Europe's industrial decline.
- The European chemicals sector has seen no large builds for 20 years.
- INEOS invested €4bn in a new petrochemicals facility in Antwerp.
- The permit for the Antwerp facility was withdrawn due to nitrogen emissions.
Warning to European Commission
Sir Jim Ratcliffe, Chairman and Founder of INEOS, has written to Ursula von der Leyen, President of the European Commission, warning that Europe is "sleepwalking towards offshoring its industry, jobs, investments, and emissions." This follows his attendance at The European Industry Summit in Antwerp, where industry leaders presented 'The Antwerp Declaration for a European Industrial Deal' to von der Leyen and Belgian Prime Minister Alexander De Croo.
Challenges in the European Chemicals Sector
In his letter, Sir Jim highlighted several challenges: the European chemicals sector struggles to compete with markets like the USA, China, and the Middle East; carbon taxes have driven away investment and increased Europe's carbon footprint by encouraging imports from countries without such taxes. He contrasted this with the USA's approach of providing substantial government incentives for cleaner technologies, which has spurred investment.
Impact of Current Policies
Sir Jim noted that Europe, once the largest chemical sector globally, has seen no significant new builds for 20 years. He argued that it is impossible to renew Europe's aging chemical infrastructure with cleaner technology under current policies. Without addressing high energy costs, carbon taxes, and lack of renewal, he warned that there would be "little left" of the European chemicals sector.
Case Study: INEOS Investment
INEOS invested €4bn in a new petrochemicals facility in Antwerp, which was superior in terms of carbon emissions and employed 10,000 workers. However, the permit was withdrawn due to nitrogen emissions, equivalent to one family barbecue in a nature reserve once a year. Sir Jim previously expressed concerns about the future of the European chemical industry in 2014, many of which have been realized.
Call to Action
Sir Jim called for action to revitalize Europe's industrial landscape by prioritizing the EU Industrial Deal alongside the EU Green Deal in Europe’s Strategic Agenda 2024-2029. Companies and organizations are invited to support Europe’s basic industries by co-signing The Antwerp Declaration.