Chemical producers will increasingly face a pressure to decarbonize. Carbon tax can become the key tool in incentivizing the change. That tax will disproportionately impact margins, depending on the technologies and feedstock in use. Many chemicals are produced by various routes with different carbon footprint. The impact of shifting margins could actually increase profitability of certain assets. This insight describes our methodology in accessing the potential effects of carbon tax and related changes in chemical asset valuation. .