The chemical industry stands at a crossroads. Responsible for around two billion tonnes of carbon dioxide emissions annually – more than double global aviation – its products underpin 95% of manufactured goods.
Yet, its environmental footprint is immense. Tackling this challenge requires a radical shift not only in technology but also in how the sector collaborates and innovates.
At the heart of this transformation is the Global Impact Coalition (GIC), a CEO-led platform uniting chemical industry giants and innovators to drive systemic change.
Meet the Global Impact Coalition
Originally incubated at the World Economic Forum, the GIC relaunched as an independent entity in November 2023. The move signalled a renewed commitment to sustainable solutions and low-carbon technologies, with GIC acting as a catalyst for industry-wide cooperation.
“Our mission is to accelerate the transition by fostering collaboration across the value chain, developing and scaling innovative technologies, and establishing new business models that reduce emissions and enhance circularity,” explains Charlie Tan, CEO of GIC.
The sheer scale of the chemical sector’s emissions is daunting.
These emissions primarily stem from two sources: energy use, which accounts for 60% of emissions due to the sector’s reliance on fossil fuels for high-heat processes, and chemical reactions themselves, which contribute the remaining 40% of emissions as byproducts.
Given the centrality of chemicals in everything from smartphones to medical equipment, addressing these emissions is critical to meeting global climate goals. The challenge, however, is not just technical but systemic.
“To reach net zero, it’s not just about cleaner technologies. Rather, it’s about reimagining how industries work together,” Charlie asserts.
GIC’s approach is to break down silos and foster pre-competitive collaboration, enabling companies to pool investment, share risk and accelerate the development and deployment of breakthrough solutions.
Key technologies and financial tools for emissions reduction
The path to net zero in the chemical industry involves a suite of emerging technologies.
Electrification of core processes, such as an electric steam cracking furnace piloted by GIC members BASF and SABIC, can cut emissions by up to 90% compared to traditional methods. Green hydrogen – produced by electrolysing water with renewable energy – offers a carbon-neutral feedstock and energy source for various chemical reactions.
Another area of focus is carbon capture and utilisation (CCU), which involves capturing CO₂ from process emissions and converting it into valuable inputs for new chemical production. Waste-to-chemicals technologies, including the direct conversion of solid waste into chemical building blocks, also show promise.
Despite their potential, many of these technologies remain at the pilot or early commercial stage. Scaling them requires significant investment, infrastructure changes and supportive policy frameworks including carbon pricing, incentives and targeted funding mechanisms.
“Achieving net zero at scale requires rethinking how capital is mobilised,” says Charlie. “We’re seeing momentum around blended finance, where public and philanthropic capital help de-risk private investment, as well as sustainability-linked loans and transition finance tailored for hard-to-abate sectors.
“Joint ventures and cross-industry partnerships are also proving effective for pooling capital and deploying shared infrastructure for circular and low-emission technologies. That’s what we’re enabling through the GIC platform.”
The role of the Global Impact Coalition
GIC brings together leading chemical companies – including BASF, Covestro, Clariant, LG Chem, LyondellBasell, Mitsubishi Chemical Group, Moeve, SABIC, SUEZ and Syensqo – to tackle sustainability challenges that no single player can solve alone.
The coalition’s strategy is to drive pre-competitive collaboration, pilot innovative solutions and build the business case for investment in low-carbon pathways.
Charlie explains that its approach focuses on:
- Driving pre-competitive collaboration to accelerate R&D and scale up key technologies.
- Piloting innovative solutions, including direct conversion and new methods for recycling plastics to unlock lower-emission pathways for feedstock and energy use.
- Building the case for investment through technical assessments and showcasing viable business models.
“Through these collective efforts, GIC aims to shift the chemical industry toward scalable, cost-effective and commercially viable net-zero pathways,” says Charlie.
Applying circular economy principles to chemicals
Chemicals are the backbone of modern life, so rethinking how they are produced is essential to enabling a circular economy.
Historically, the industry has depended on fossil fuels for both energy and feedstock. Circularity in the chemical industry requires a shift in sourcing, processing and reusing carbon.
This can be achieved through three main pathways: recycling plastic and other carbon-rich waste as feedstock for new materials; sourcing feedstocks from renewable resources such as biomass; and capturing CO₂ from the atmosphere or industrial processes for conversion into chemical inputs.
Charlie notes: “At GIC, we’re focused on scaling innovative technologies that can support the circular transition at speed and scale.”
Innovations in recycling and waste reuse
One area of focus for GIC is advanced recycling, such as pyrolysis, which breaks down plastic waste into reusable chemical building blocks. Another promising innovation is direct conversion, a process that transforms municipal solid waste directly into monomers, which are key chemical building blocks.
GIC’s Direct Conversion project, in collaboration with researchers from ETH Zurich, is currently assessing the environmental and economic potential of this technology.
“If successful, direct conversion could offer a low-energy, low-emission and cost-effective route for turning waste – be it plastic or biomass – into valuable inputs for new materials,” Charlie says.
This project exemplifies how fundamental research and industry collaboration can fast-track breakthrough solutions. It also demonstrates the coalition’s commitment to translating circular economy principles into real, scalable action.
The chemical industry stands at a crossroads. Responsible for around two billion tonnes of carbon dioxide emissions annually – more than double global aviation – its products underpin 95% of manufactured goods.
Yet, its environmental footprint is immense. Tackling this challenge requires a radical shift not only in technology but also in how the sector collaborates and innovates.
At the heart of this transformation is the Global Impact Coalition (GIC), a CEO-led platform uniting chemical industry giants and innovators to drive systemic change.
Meet the Global Impact Coalition
Originally incubated at the World Economic Forum, the GIC relaunched as an independent entity in November 2023. The move signalled a renewed commitment to sustainable solutions and low-carbon technologies, with GIC acting as a catalyst for industry-wide cooperation.
“Our mission is to accelerate the transition by fostering collaboration across the value chain, developing and scaling innovative technologies, and establishing new business models that reduce emissions and enhance circularity,” explains Charlie Tan, CEO of GIC.
The sheer scale of the chemical sector’s emissions is daunting.
These emissions primarily stem from two sources: energy use, which accounts for 60% of emissions due to the sector’s reliance on fossil fuels for high-heat processes, and chemical reactions themselves, which contribute the remaining 40% of emissions as byproducts.
Given the centrality of chemicals in everything from smartphones to medical equipment, addressing these emissions is critical to meeting global climate goals. The challenge, however, is not just technical but systemic.
“To reach net zero, it’s not just about cleaner technologies. Rather, it’s about reimagining how industries work together,” Charlie asserts.
GIC’s approach is to break down silos and foster pre-competitive collaboration, enabling companies to pool investment, share risk and accelerate the development and deployment of breakthrough solutions.
Key technologies and financial tools for emissions reduction
The path to net zero in the chemical industry involves a suite of emerging technologies.
Electrification of core processes, such as an electric steam cracking furnace piloted by GIC members BASF and SABIC, can cut emissions by up to 90% compared to traditional methods. Green hydrogen – produced by electrolysing water with renewable energy – offers a carbon-neutral feedstock and energy source for various chemical reactions.
Another area of focus is carbon capture and utilisation (CCU), which involves capturing CO₂ from process emissions and converting it into valuable inputs for new chemical production. Waste-to-chemicals technologies, including the direct conversion of solid waste into chemical building blocks, also show promise.
Despite their potential, many of these technologies remain at the pilot or early commercial stage. Scaling them requires significant investment, infrastructure changes and supportive policy frameworks including carbon pricing, incentives and targeted funding mechanisms.
“Achieving net zero at scale requires rethinking how capital is mobilised,” says Charlie. “We’re seeing momentum around blended finance, where public and philanthropic capital help de-risk private investment, as well as sustainability-linked loans and transition finance tailored for hard-to-abate sectors.
“Joint ventures and cross-industry partnerships are also proving effective for pooling capital and deploying shared infrastructure for circular and low-emission technologies. That’s what we’re enabling through the GIC platform.”
The role of the Global Impact Coalition
GIC brings together leading chemical companies – including BASF, Covestro, Clariant, LG Chem, LyondellBasell, Mitsubishi Chemical Group, Moeve, SABIC, SUEZ and Syensqo – to tackle sustainability challenges that no single player can solve alone.
The coalition’s strategy is to drive pre-competitive collaboration, pilot innovative solutions and build the business case for investment in low-carbon pathways.
Charlie explains that its approach focuses on:
- Driving pre-competitive collaboration to accelerate R&D and scale up key technologies.
- Piloting innovative solutions, including direct conversion and new methods for recycling plastics to unlock lower-emission pathways for feedstock and energy use.
- Building the case for investment through technical assessments and showcasing viable business models.
“Through these collective efforts, GIC aims to shift the chemical industry toward scalable, cost-effective and commercially viable net-zero pathways,” says Charlie.
Applying circular economy principles to chemicals
Chemicals are the backbone of modern life, so rethinking how they are produced is essential to enabling a circular economy.
Historically, the industry has depended on fossil fuels for both energy and feedstock. Circularity in the chemical industry requires a shift in sourcing, processing and reusing carbon.
This can be achieved through three main pathways: recycling plastic and other carbon-rich waste as feedstock for new materials; sourcing feedstocks from renewable resources such as biomass; and capturing CO₂ from the atmosphere or industrial processes for conversion into chemical inputs.
Charlie notes: “At GIC, we’re focused on scaling innovative technologies that can support the circular transition at speed and scale.”
Innovations in recycling and waste reuse
One area of focus for GIC is advanced recycling, such as pyrolysis, which breaks down plastic waste into reusable chemical building blocks. Another promising innovation is direct conversion, a process that transforms municipal solid waste directly into monomers, which are key chemical building blocks.
GIC’s Direct Conversion project, in collaboration with researchers from ETH Zurich, is currently assessing the environmental and economic potential of this technology.
“If successful, direct conversion could offer a low-energy, low-emission and cost-effective route for turning waste – be it plastic or biomass – into valuable inputs for new materials,” Charlie says.
This project exemplifies how fundamental research and industry collaboration can fast-track breakthrough solutions. It also demonstrates the coalition’s commitment to translating circular economy principles into real, scalable action.
GIC’s collaborative pilots and success stories
GIC has already seen progress through several coalition-initiated pilots and partnerships.
The Automotive Plastics Circularity Pilot, for example, addresses the challenge of end-of-life vehicle plastics, 80% of which are currently incinerated or landfilled in the EU.
This pilot brings together players across the automotive and plastics value chains – from dismantlers and recyclers to material producers – to develop scalable systems for collecting, sorting and recycling automotive plastics. The goal is to produce high-quality recycled plastics that can be reintroduced into new vehicles in a closed-loop system.
Another initiative, the R&D Hub for Plastic Waste Processing, focuses on low-carbon technologies for converting plastic waste into valuable secondary raw materials. Originally incubated by GIC under the World Economic Forum, the hub is now led by Dutch innovation agency TNO and serves as a platform for cross-sector collaboration and cutting-edge research.
Together, these efforts demonstrate the potential to decarbonise the chemical industry and reduce waste across multiple sectors.
Balancing profitability with sustainability in chemicals
For the chemical industry, future competitiveness will hinge on the ability to reduce emissions, close material loops and meet rising demand for sustainable products. Customers, investors and regulators are all pushing for lower-impact solutions.
“Sustainability and profitability are no longer at odds,” explains Charlie. “In fact, they are increasingly interdependent.”
Companies that lead on sustainability are positioning themselves for long-term value creation.
Investing in technologies that reduce emissions and increase resource efficiency, while also developing new business models that create value from circularity, is now essential. Collaboration across the value chain helps share costs and accelerate progress.
Financial mechanisms and policy trends shaping the sector
Achieving net zero at scale requires rethinking how capital is mobilised. Blended finance, sustainability-linked loans and transition finance are unlocking large-scale investment in net-zero projects.
Policy is also moving quickly, especially in key markets like the European Union. Carbon pricing, emissions reporting and recycled content mandates are already influencing investment decisions. Regulations such as Extended Producer Responsibility (EPR) are pushing companies to take greater ownership of their products’ end-of-life impacts.
“These trends underscore the need for proactive engagement with policymakers and a readiness to adapt business models to a changing regulatory landscape,” Charlie notes.
The importance of partner ecosystems for systemic change
GIC’s strength lies in its network of member companies and partners. Its members include some of the world’s leading chemical and recycling companies, representing a cross-section of the value chain.
As a member-led organisation, GIC is built on collaboration and trust. Its executive committee, comprising senior leaders from each member company, provides strategic direction, while dedicated working groups drive progress across innovation projects and research initiatives.
But the coalition does not work alone. Ecosystem partnerships are fundamental to achieving breakthroughs. GIC collaborates with research institutions like TNO and Brightlands to push the boundaries of science and technology, as well as strategy partners such as Boston Consulting Group to guide the development of robust, scalable business models.
Media and communications partners, including Sustainability Magazine, are essential in spotlighting the chemical industry’s challenges and contributions, helping bring the sector’s sustainability efforts to the forefront.
“Sustainability Magazine, as a trusted voice in the sustainability space, is a key partner in helping raise awareness about the chemical industry's role in enabling a more sustainable future,” highlights Charlie.
By working with influential media platforms, GIC aims to expand the conversation beyond industry insiders, bringing the story of chemical transformation to a broader audience.
GIC’s outlook: scaling impact and accelerating innovation
Looking ahead, GIC plans to expand its global impact by broadening its reach and accelerating the scale-up of solutions. This includes scaling successful pilots, advancing innovative new projects and launching new initiatives in low-carbon chemical production and advanced recycling.
“GIC’s approach is results-driven, ensuring that ideas quickly translate into actionable projects that deliver measurable impact,” Charlie says.
The future of the chemical industry will be shaped by its ability to reduce emissions and advance circularity across the value chain. GIC sees three major areas driving progress: scaling breakthrough technologies, developing new business models and building proof-of-concept pilots.
Charlie concludes: “GIC will continue to launch targeted initiatives, broaden our partnerships and build scalable solutions to deliver measurable environmental and economic impact.”
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Charlie Tan
Chief Executive Officer