Friday, September 20, 2024

Jim Ratcliffe: Europe’s chemicals sector risks ‘sleepwaking’ into job losses

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Sir Jim Ratcliffe has warned EU bosses that Europe risks “sleepwalking” into a loss of jobs and “offshoring” its emissions over its petrochemicals policies.

The billionaire founder and chairman of INEOS told the EU Commission president that Europe has “long been left behind” and struggles to compete with the USA, China and Middle East.

He argued there will be “little left” if the European government does not address the high energy costs, carbon taxes and lack of renewal that impacts the chemicals sector in Europe.

“Carbon taxes have been successful in driving investment away and increasing the burden on manufacturers,” the billionaire said.

“These taxes have encouraged imports from countries without carbon taxes, which has increased the carbon footprint of Europe as it now relies on suppliers with inferior carbon emissions overseas.”

He warned that Europe risks “sleepwalking towards offshoring its industry, jobs, investments, and emissions”.

By contrast, Ratcliffe cited the Inflation Reduction Act in the USA which has encouraged clean tech investment.

He said the sector in Europe has 20 million jobs, when counting associated employment, but said it is now at risk.

Ratcliffe’s comments come following The European Industry Summit in Antwerp today, where 73 industry leaders representing almost 20 industrial sectors presented ‘The Antwerp Declaration for a European Industrial Deal’ to EU Commission president Ursula Von der Leyen.

The declaration calls for an urgent deal to enhance competitiveness.

Ratcliffe used his letter to Ms Von Der Leyen to vent about INEOS’ Antwerp chemicals facility having its permit withdrawn “because nitrogen emissions were the equivalent of one family BBQ in a nature reserve once a year”.

He argues this makes it impossible to renew Europe’s chemicals base, as is happening in the US, “impossible”.

“The trajectory for European chemicals has been significantly declining now for 20 years. Once the largest chemical sector in the world it has seen no large builds during this time unlike the USA, China and the Middle East.

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