EU Green Rules Hit Chemicals With $20B Cost and Plant Closures

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Chemical giants face a staggering $20 billion annual hit from EU's green regulations, reshaping the European manufacturing landscape.

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European facilities get shuttered by Dow and LyondellBasell as regulatory pressures combine with weak demand and soaring input costs.

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Free carbon emission permits will soon be phased out by EU regulators while the list of restricted chemicals continues to grow.

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Raw materials with no replacements could be lost due to proposed regulations, warns PPG's EMEA President Pedro Serret-Salvat.

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A tenth of chemical firms' European capital spending is now consumed by regulatory compliance costs alone.

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Paperwork for EU's REACH regulation requires 250 dedicated employees at BASF, revealing the massive administrative burden placed on manufacturers.

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Greenhouse gas penalties mount across the industry, with just 73 reporting companies spending €1.32 billion on carbon credits last year.

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An annual $10-12 million hit from eliminated free carbon allowances has been forecasted by Celanese in its CDP report.

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Additional chemical bans in the EU will likely continue, following historical patterns, according to Morningstar analyst Seth Goldstein.

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