Germany's chemical lobby calls for regulatory reform and growth agenda
VCI, the industry lobby group in Germany, said that to achieve climate neutrality while remaining competitive and improving its performance it is necessary for regulation changes.
VCI, which published two of its own studies, said that the crises in the last few years had left a mark on the balance sheet of chemical and pharmaceutical firms.
Boston Consulting Group, in a study on the mood of the industry, found that nearly three-quarters of respondents are not likely to invest in new sites and plants in Germany. They cited bureaucracy and high energy costs, as well as long approval processes.
The other study, conducted by VCI’s platform Chemistry4Climate and focused on energy consumption in the industry, noted that the decrease in production was reducing its demand for electricity, hydrogen, and fuel oil.
Wolfgang Grosse Entrup, VCI official, said: "However this does not make the path towards climate neutrality any simpler." The decline in German production will have a negative impact on the climate, and will make our location more vulnerable to supply chain issues.
The chemical sector, Germany’s third largest industry, employs about half a milllion workers. However, the sector continues to struggle due to tepid consumer demand and rising prices for energy and raw materials.
"In our business, location problems are magnified. They affect all sectors. Entrup stated that we need to implement a long-term and comprehensive innovation and growth strategy at full speed.
"Nature's model of German prosperity is on the line." "This should be the number one priority, regardless of party affiliation," he said. (Reporting and editing by Jane Merriman in Gdansk; Tristan Veyet, Gdansk)
(source: Reuters)
