Carbon tax as an opportunity in chemicals Report

Insight 06 May 2022

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Report summary

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. .

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.
Changing profitability will affect asset valuation and company valuation. The overall carbon footprint of individual assets will play a role in corporate strategies and the management of environmental risks.