Selected Publications
Finkill, G. and Barrowclough, D., 2023, June. Green finance and decarbonization of petrochemicals: Slim pickings in a crucial but hard-to-abate industry. UNCTAD/GDS/2023/2.
Bauer, F., Tilsted, J.P., Birkbeck, C.D., Skovgaard, J., Rootzén, J., Karltorp, K., Åhman, M., Finkill, G.D., Cortat, L. and Nyberg, T., 2023, May. Petrochemicals and climate change: Powerful fossil fuel lock-ins and interventions for transformative change. In Launch event for the report” Petrochemicals and climate change: Powerful fossil fuel lock-ins and interventions for transformative change”. Environmental and Energy Systems Studies, Lund university.
Skovgaard, J., Finkill, G., Bauer, F., Åhman, M., Nielsen, T, D. (2023) Finance for fossils – the role of public financing in expanding petrochemicals. Global Environmental Change.
Tilsted, J.P., Mah, A., Nielsen, T.D., Finkill, G. and Bauer, F., 2022. Petrochemical transition narratives: Selling fossil fuel solutions in a decarbonizing world. Energy Research & Social Science, 94, p.102880.
Bauer, F., Kulionis, V., Oberschelp, C., Pfister, S., Tilsted, J.P., Finkill, G.D. and Fjäll, S., 2022. Petrochemicals and Climate Change: Tracing Globally Growing Emissions and Key Blind Spots in a Fossil-Based Industry. IMES/EESS report, 126.
Barrowclough, D. and Finkill, G., 2021. Banks, Bonds and the petrochemicals/plastics industry; Greening the Path from Copenhagen Agreement, Covid and Beyond. UNCTAD Research Paper, (69).
Other
2023
Finkill, Guy; Barrowclough, Diana
Green finance and decarbonization of petrochemicals:: Slim pickings in a crucial but hard-to-abate industry Book
UNCTAD/GDS/2023/2, United Nations Conference on Trade and Development, Switzerland, 2023.
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title = {Green finance and decarbonization of petrochemicals:: Slim pickings in a crucial but hard-to-abate industry},
author = {Guy Finkill and Diana Barrowclough},
year = {2023},
date = {2023-06-07},
publisher = {United Nations Conference on Trade and Development},
address = {Switzerland},
edition = {UNCTAD/GDS/2023/2},
abstract = {Achieving the greener, more equitable and sustainable future envisaged by the SDGs needs a massive investment push into new sectors, sources of energy, modes of transport and manufacturing and agricultural processes. It must support both decarbonisation and low-carbon economic growth.One line of thought argues that the finance for such a catalytic shift must come from public resources and a developmental State. Another runs that the private sector is best equipped for this and must just be given space to do the job, albeit with some judicious de-risking by the government when needed.This paper aims to put some empirical evidence into the debate, looking at what is actually happening in terms of finance to the crucial but little studied petrochemical sector.The focuses on one of the fastest growing categories of market-based mechanisms for so-called green finance, namely green bonds, issued both by sovereign states and by private corporations, in the crucial but little-studied sector of petrochemicals.Greening of the petrochemical industry could make a significant impact into de-carbonisation as it is highly fossil-fuel dependent and carbon-emitting. It is however difficult to abate, as the sector has over decades become extremely large and deeply embedded into numerous and far-reaching value chains that deliver useful final and intermediate products on which daily life depends – from fertiliser to pharmaceuticals. Transformation will impact both negatively and positively on the livelihoods of millions of people.In this challenging context, the paper asks the question whether market-based mechanisms such as bonds are likely to help to decarbonise the petrochemical sector.The paper focuses in particular on the experience of Asia, where some of the challenges, but also the opportunities, of transitioning away from outdated and polluting processes are most acute.Detailed case-studies of two green bond issuances in the sector provide some interesting and potentially important lessons for future issuances; this may be crucial given the very wide-spread and ambitious pledges for low to zero-carbon made by industry players.},
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Achieving the greener, more equitable and sustainable future envisaged by the SDGs needs a massive investment push into new sectors, sources of energy, modes of transport and manufacturing and agricultural processes. It must support both decarbonisation and low-carbon economic growth.One line of thought argues that the finance for such a catalytic shift must come from public resources and a developmental State. Another runs that the private sector is best equipped for this and must just be given space to do the job, albeit with some judicious de-risking by the government when needed.This paper aims to put some empirical evidence into the debate, looking at what is actually happening in terms of finance to the crucial but little studied petrochemical sector.The focuses on one of the fastest growing categories of market-based mechanisms for so-called green finance, namely green bonds, issued both by sovereign states and by private corporations, in the crucial but little-studied sector of petrochemicals.Greening of the petrochemical industry could make a significant impact into de-carbonisation as it is highly fossil-fuel dependent and carbon-emitting. It is however difficult to abate, as the sector has over decades become extremely large and deeply embedded into numerous and far-reaching value chains that deliver useful final and intermediate products on which daily life depends – from fertiliser to pharmaceuticals. Transformation will impact both negatively and positively on the livelihoods of millions of people.In this challenging context, the paper asks the question whether market-based mechanisms such as bonds are likely to help to decarbonise the petrochemical sector.The paper focuses in particular on the experience of Asia, where some of the challenges, but also the opportunities, of transitioning away from outdated and polluting processes are most acute.Detailed case-studies of two green bond issuances in the sector provide some interesting and potentially important lessons for future issuances; this may be crucial given the very wide-spread and ambitious pledges for low to zero-carbon made by industry players.
2022
Tilsted, Joachim Peter; Mah, Alice; Nielsen, Tobias Dan; Finkill, Guy; Bauer, Fredric
Petrochemical transition narratives: Selling fossil fuel solutions in a decarbonizing world Journal Article
In: Energy Research & Social Science, vol. 94, 2022, ISSN: 2214-6296, (Funding Information: To reinforce this narrative, proponents often reference life cycle assessment studies that promote the embedded emissions benefits of plastics compared to alternatives [84,89]. For example, a report sponsored by the American Chemistry Council [90] finds that emissions related to plastic packaging could increase significantly if all plastic packaging in the US was replaced by alternative materials. Claiming benefits by referencing a benchmark with higher emissions is a relative rather than absolute assessment, meaning that the chosen benchmark matters a great deal to this line of reasoning (for example, one could imagine “reduced use” reference scenario). Moreover, this argument does not say anything about whether the unit of analysis performs “well enough” given ecological limits [91], a tendency that is mirrored in corporate sustainability reporting more generally [92]. Quantifying “avoided emissions” requires consistency, or else it results in incoherence [93]. For example, in the quote above, Linde makes it accounting in reference to a hypothetical scenario in which customers do not apply Linde products, seemingly assuming that no relevant substitutes exist. In attributing these reductions to Linde, double counting occurs when their customers report lower direct emissions. Use of “creative accounting” is not unique but rather a widespread tendency in the industry, especially in relation to life cycle assessment [41].The research was supported by funding from the V. Kann Rasmussen Foundation and the Swedish Foundation for Strategic Environmental Research (Mistra) through the “STEPS – Sustainable Plastics and Transition Pathways” programme. Funding Information: The research was supported by funding from the V. Kann Rasmussen Foundation and the Swedish Foundation for Strategic Environmental Research (Mistra) through the “STEPS – Sustainable Plastics and Transition Pathways” programme. Publisher Copyright: © 2022 The Author(s)).
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title = {Petrochemical transition narratives: Selling fossil fuel solutions in a decarbonizing world},
author = {Joachim Peter Tilsted and Alice Mah and Tobias Dan Nielsen and Guy Finkill and Fredric Bauer},
doi = {10.1016/j.erss.2022.102880},
issn = {2214-6296},
year = {2022},
date = {2022-12-01},
journal = {Energy Research & Social Science},
volume = {94},
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abstract = {Being integral to the fossil-based energy order and as a key driver of multiple and intersecting ecological crises, the petrochemical industry faces increasing pressures to transform. This paper examines how major petrochemical companies navigate these pressures. Drawing from literatures on discursive power, narratives, and neoGramscian political economy, we introduce the concept of narrative realignment as a nuanced iteration of corporate discursive power that reframes problems of and solutions to green transitions. Specifically, we identify and explore common transition-related narratives, analysing climate and sustainability communications from the largest producers in the petrochemical sector. We argue that these strategic narratives portray the petrochemical industry as key to a successful transition and fend off criticisms by reducing them to misunderstandings. This framing works to reduce pressures for deep mitigation while repositioning the industry as part of the solution. Building on these findings, we demonstrate how petrochemical transition narratives relate to but also diverge from the position of fossil fuel extractors. Despite relying on fossil feedstock and being solidly placed in the fossil economy, petrochemical majors increasingly focus on repositioning themselves proactively as transition enablers. The argument illustrates the work of downstream actors to legitimize the existing energy order.},
note = {Funding Information: To reinforce this narrative, proponents often reference life cycle assessment studies that promote the embedded emissions benefits of plastics compared to alternatives [84,89]. For example, a report sponsored by the American Chemistry Council [90] finds that emissions related to plastic packaging could increase significantly if all plastic packaging in the US was replaced by alternative materials. Claiming benefits by referencing a benchmark with higher emissions is a relative rather than absolute assessment, meaning that the chosen benchmark matters a great deal to this line of reasoning (for example, one could imagine “reduced use” reference scenario). Moreover, this argument does not say anything about whether the unit of analysis performs “well enough” given ecological limits [91], a tendency that is mirrored in corporate sustainability reporting more generally [92]. Quantifying “avoided emissions” requires consistency, or else it results in incoherence [93]. For example, in the quote above, Linde makes it accounting in reference to a hypothetical scenario in which customers do not apply Linde products, seemingly assuming that no relevant substitutes exist. In attributing these reductions to Linde, double counting occurs when their customers report lower direct emissions. Use of “creative accounting” is not unique but rather a widespread tendency in the industry, especially in relation to life cycle assessment [41].The research was supported by funding from the V. Kann Rasmussen Foundation and the Swedish Foundation for Strategic Environmental Research (Mistra) through the “STEPS – Sustainable Plastics and Transition Pathways” programme. Funding Information: The research was supported by funding from the V. Kann Rasmussen Foundation and the Swedish Foundation for Strategic Environmental Research (Mistra) through the "STEPS – Sustainable Plastics and Transition Pathways" programme. Publisher Copyright: © 2022 The Author(s)},
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Being integral to the fossil-based energy order and as a key driver of multiple and intersecting ecological crises, the petrochemical industry faces increasing pressures to transform. This paper examines how major petrochemical companies navigate these pressures. Drawing from literatures on discursive power, narratives, and neoGramscian political economy, we introduce the concept of narrative realignment as a nuanced iteration of corporate discursive power that reframes problems of and solutions to green transitions. Specifically, we identify and explore common transition-related narratives, analysing climate and sustainability communications from the largest producers in the petrochemical sector. We argue that these strategic narratives portray the petrochemical industry as key to a successful transition and fend off criticisms by reducing them to misunderstandings. This framing works to reduce pressures for deep mitigation while repositioning the industry as part of the solution. Building on these findings, we demonstrate how petrochemical transition narratives relate to but also diverge from the position of fossil fuel extractors. Despite relying on fossil feedstock and being solidly placed in the fossil economy, petrochemical majors increasingly focus on repositioning themselves proactively as transition enablers. The argument illustrates the work of downstream actors to legitimize the existing energy order.
Bauer, Fredric; Kulionis, Viktoras; Oberschelp, Christopher; Pfister, Stephan; Tilsted, Joachim Peter; Finkill, Guy; Fjäll, Stephanie
Petrochemicals and Climate Change: Tracing Globally Growing Emissions and Key Blind Spots in a Fossil-Based Industry Book
Lund University, Sweden, 2022, ISBN: 1102-3651.
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title = {Petrochemicals and Climate Change: Tracing Globally Growing Emissions and Key Blind Spots in a Fossil-Based Industry},
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2021
Finkill, Guy; Barrowclough, Diana
Banks, bonds and petrochemicals: Greening the path from the Copenhagen Agreement, through Covid and beyond Book
2021.
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title = {Banks, bonds and petrochemicals: Greening the path from the Copenhagen Agreement, through Covid and beyond},
author = {Guy Finkill and Diana Barrowclough},
year = {2021},
date = {2021-01-01},
abstract = {The petrochemical sector is a high-emitting industry that is a crucial middle-ground between multiple sectors and is often touted as the producers of the 'building blocks of life' because of its omnipresence in everyday life. Despite this, however, petrochemicals slip under the radar in discussions on alleviating the impacts of climate change and the necessity for rapid decarbonisation, where focal points often centre on energy production, transport, and food.This paper maps the finance flows in the petrochemical industry since 2009 with the aim of identifying potential leverage points in the world of public and private finance that could help hasten the rate of decarbonisation for a sector that is hard-to-abate, given its dependency on the fossil fuel industry and the necessity for high-levels of heat and energy in its production processes. The findings aim to help contribute to debate given the growing number of governments and industries that have pledged to low-carbon or even zero-carbon strategies.Chemical and plastics production, although inextricably connected with the extractivist fossil fuel industry at our current standpoint, do not have to be solely derived from fossil fuel feedstocks. Bioplastics and bio-based chemical innovations are hitting the market, but they continue to account for a negligible fraction of the overall output of the industry.This paper assesses the state-of-play in the financing of these niche-level innovations and identifies potential manners in which the re-direction of existing capital flows connected to the industry could harness the momentum of a green transition and realise an equitable pathway for decarbonisation.},
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The petrochemical sector is a high-emitting industry that is a crucial middle-ground between multiple sectors and is often touted as the producers of the ‘building blocks of life’ because of its omnipresence in everyday life. Despite this, however, petrochemicals slip under the radar in discussions on alleviating the impacts of climate change and the necessity for rapid decarbonisation, where focal points often centre on energy production, transport, and food.This paper maps the finance flows in the petrochemical industry since 2009 with the aim of identifying potential leverage points in the world of public and private finance that could help hasten the rate of decarbonisation for a sector that is hard-to-abate, given its dependency on the fossil fuel industry and the necessity for high-levels of heat and energy in its production processes. The findings aim to help contribute to debate given the growing number of governments and industries that have pledged to low-carbon or even zero-carbon strategies.Chemical and plastics production, although inextricably connected with the extractivist fossil fuel industry at our current standpoint, do not have to be solely derived from fossil fuel feedstocks. Bioplastics and bio-based chemical innovations are hitting the market, but they continue to account for a negligible fraction of the overall output of the industry.This paper assesses the state-of-play in the financing of these niche-level innovations and identifies potential manners in which the re-direction of existing capital flows connected to the industry could harness the momentum of a green transition and realise an equitable pathway for decarbonisation.
Finkill, Guy; Barrowclough, Diana
Banks, bonds and petrochemicals: Greening the path from the Copenhagen Agreement, through Covid and beyond Book
2021.
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author = {Guy Finkill and Diana Barrowclough},
year = {2021},
date = {2021-01-01},
abstract = {The petrochemical sector is a high-emitting industry that is a crucial middle-ground between multiple sectors and is often touted as the producers of the 'building blocks of life' because of its omnipresence in everyday life. Despite this, however, petrochemicals slip under the radar in discussions on alleviating the impacts of climate change and the necessity for rapid decarbonisation, where focal points often centre on energy production, transport, and food.This paper maps the finance flows in the petrochemical industry since 2009 with the aim of identifying potential leverage points in the world of public and private finance that could help hasten the rate of decarbonisation for a sector that is hard-to-abate, given its dependency on the fossil fuel industry and the necessity for high-levels of heat and energy in its production processes. The findings aim to help contribute to debate given the growing number of governments and industries that have pledged to low-carbon or even zero-carbon strategies.Chemical and plastics production, although inextricably connected with the extractivist fossil fuel industry at our current standpoint, do not have to be solely derived from fossil fuel feedstocks. Bioplastics and bio-based chemical innovations are hitting the market, but they continue to account for a negligible fraction of the overall output of the industry.This paper assesses the state-of-play in the financing of these niche-level innovations and identifies potential manners in which the re-direction of existing capital flows connected to the industry could harness the momentum of a green transition and realise an equitable pathway for decarbonisation.},
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The petrochemical sector is a high-emitting industry that is a crucial middle-ground between multiple sectors and is often touted as the producers of the ‘building blocks of life’ because of its omnipresence in everyday life. Despite this, however, petrochemicals slip under the radar in discussions on alleviating the impacts of climate change and the necessity for rapid decarbonisation, where focal points often centre on energy production, transport, and food.This paper maps the finance flows in the petrochemical industry since 2009 with the aim of identifying potential leverage points in the world of public and private finance that could help hasten the rate of decarbonisation for a sector that is hard-to-abate, given its dependency on the fossil fuel industry and the necessity for high-levels of heat and energy in its production processes. The findings aim to help contribute to debate given the growing number of governments and industries that have pledged to low-carbon or even zero-carbon strategies.Chemical and plastics production, although inextricably connected with the extractivist fossil fuel industry at our current standpoint, do not have to be solely derived from fossil fuel feedstocks. Bioplastics and bio-based chemical innovations are hitting the market, but they continue to account for a negligible fraction of the overall output of the industry.This paper assesses the state-of-play in the financing of these niche-level innovations and identifies potential manners in which the re-direction of existing capital flows connected to the industry could harness the momentum of a green transition and realise an equitable pathway for decarbonisation.
0000
Tilsted, Joachim Peter; Mah, Alice; Nielsen, Tobias Dan; Finkill, Guy; Bauer, Fredric
Petrochemical transition narratives: Selling fossil fuel solutions in a decarbonizing world Journal Article
In: Energy Research & Social Science, vol. 94, 0000, ISSN: 2214-6296, (Funding Information: To reinforce this narrative, proponents often reference life cycle assessment studies that promote the embedded emissions benefits of plastics compared to alternatives [84,89]. For example, a report sponsored by the American Chemistry Council [90] finds that emissions related to plastic packaging could increase significantly if all plastic packaging in the US was replaced by alternative materials. Claiming benefits by referencing a benchmark with higher emissions is a relative rather than absolute assessment, meaning that the chosen benchmark matters a great deal to this line of reasoning (for example, one could imagine “reduced use” reference scenario). Moreover, this argument does not say anything about whether the unit of analysis performs “well enough” given ecological limits [91], a tendency that is mirrored in corporate sustainability reporting more generally [92]. Quantifying “avoided emissions” requires consistency, or else it results in incoherence [93]. For example, in the quote above, Linde makes it accounting in reference to a hypothetical scenario in which customers do not apply Linde products, seemingly assuming that no relevant substitutes exist. In attributing these reductions to Linde, double counting occurs when their customers report lower direct emissions. Use of “creative accounting” is not unique but rather a widespread tendency in the industry, especially in relation to life cycle assessment [41].The research was supported by funding from the V. Kann Rasmussen Foundation and the Swedish Foundation for Strategic Environmental Research (Mistra) through the “STEPS – Sustainable Plastics and Transition Pathways” programme. Funding Information: The research was supported by funding from the V. Kann Rasmussen Foundation and the Swedish Foundation for Strategic Environmental Research (Mistra) through the “STEPS – Sustainable Plastics and Transition Pathways” programme. Publisher Copyright: © 2022 The Author(s)).
@article{7ce534f168b1473abc209b787da8ada6b,
title = {Petrochemical transition narratives: Selling fossil fuel solutions in a decarbonizing world},
author = {Joachim Peter Tilsted and Alice Mah and Tobias Dan Nielsen and Guy Finkill and Fredric Bauer},
doi = {10.1016/j.erss.2022.102880},
issn = {2214-6296},
journal = {Energy Research & Social Science},
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abstract = {Being integral to the fossil-based energy order and as a key driver of multiple and intersecting ecological crises, the petrochemical industry faces increasing pressures to transform. This paper examines how major petrochemical companies navigate these pressures. Drawing from literatures on discursive power, narratives, and neoGramscian political economy, we introduce the concept of narrative realignment as a nuanced iteration of corporate discursive power that reframes problems of and solutions to green transitions. Specifically, we identify and explore common transition-related narratives, analysing climate and sustainability communications from the largest producers in the petrochemical sector. We argue that these strategic narratives portray the petrochemical industry as key to a successful transition and fend off criticisms by reducing them to misunderstandings. This framing works to reduce pressures for deep mitigation while repositioning the industry as part of the solution. Building on these findings, we demonstrate how petrochemical transition narratives relate to but also diverge from the position of fossil fuel extractors. Despite relying on fossil feedstock and being solidly placed in the fossil economy, petrochemical majors increasingly focus on repositioning themselves proactively as transition enablers. The argument illustrates the work of downstream actors to legitimize the existing energy order.},
note = {Funding Information: To reinforce this narrative, proponents often reference life cycle assessment studies that promote the embedded emissions benefits of plastics compared to alternatives [84,89]. For example, a report sponsored by the American Chemistry Council [90] finds that emissions related to plastic packaging could increase significantly if all plastic packaging in the US was replaced by alternative materials. Claiming benefits by referencing a benchmark with higher emissions is a relative rather than absolute assessment, meaning that the chosen benchmark matters a great deal to this line of reasoning (for example, one could imagine “reduced use” reference scenario). Moreover, this argument does not say anything about whether the unit of analysis performs “well enough” given ecological limits [91], a tendency that is mirrored in corporate sustainability reporting more generally [92]. Quantifying “avoided emissions” requires consistency, or else it results in incoherence [93]. For example, in the quote above, Linde makes it accounting in reference to a hypothetical scenario in which customers do not apply Linde products, seemingly assuming that no relevant substitutes exist. In attributing these reductions to Linde, double counting occurs when their customers report lower direct emissions. Use of “creative accounting” is not unique but rather a widespread tendency in the industry, especially in relation to life cycle assessment [41].The research was supported by funding from the V. Kann Rasmussen Foundation and the Swedish Foundation for Strategic Environmental Research (Mistra) through the “STEPS – Sustainable Plastics and Transition Pathways” programme. Funding Information: The research was supported by funding from the V. Kann Rasmussen Foundation and the Swedish Foundation for Strategic Environmental Research (Mistra) through the "STEPS – Sustainable Plastics and Transition Pathways" programme. Publisher Copyright: © 2022 The Author(s)},
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Being integral to the fossil-based energy order and as a key driver of multiple and intersecting ecological crises, the petrochemical industry faces increasing pressures to transform. This paper examines how major petrochemical companies navigate these pressures. Drawing from literatures on discursive power, narratives, and neoGramscian political economy, we introduce the concept of narrative realignment as a nuanced iteration of corporate discursive power that reframes problems of and solutions to green transitions. Specifically, we identify and explore common transition-related narratives, analysing climate and sustainability communications from the largest producers in the petrochemical sector. We argue that these strategic narratives portray the petrochemical industry as key to a successful transition and fend off criticisms by reducing them to misunderstandings. This framing works to reduce pressures for deep mitigation while repositioning the industry as part of the solution. Building on these findings, we demonstrate how petrochemical transition narratives relate to but also diverge from the position of fossil fuel extractors. Despite relying on fossil feedstock and being solidly placed in the fossil economy, petrochemical majors increasingly focus on repositioning themselves proactively as transition enablers. The argument illustrates the work of downstream actors to legitimize the existing energy order.
Finkill, Guy; Barrowclough, Diana
Green finance and decarbonization of petrochemicals:: Slim pickings in a crucial but hard-to-abate industry Book
UNCTAD/GDS/2023/2, United Nations Conference on Trade and Development, Switzerland, 0000.
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title = {Green finance and decarbonization of petrochemicals:: Slim pickings in a crucial but hard-to-abate industry},
author = {Guy Finkill and Diana Barrowclough},
publisher = {United Nations Conference on Trade and Development},
address = {Switzerland},
edition = {UNCTAD/GDS/2023/2},
abstract = {Achieving the greener, more equitable and sustainable future envisaged by the SDGs needs a massive investment push into new sectors, sources of energy, modes of transport and manufacturing and agricultural processes. It must support both decarbonisation and low-carbon economic growth.One line of thought argues that the finance for such a catalytic shift must come from public resources and a developmental State. Another runs that the private sector is best equipped for this and must just be given space to do the job, albeit with some judicious de-risking by the government when needed.This paper aims to put some empirical evidence into the debate, looking at what is actually happening in terms of finance to the crucial but little studied petrochemical sector.The focuses on one of the fastest growing categories of market-based mechanisms for so-called green finance, namely green bonds, issued both by sovereign states and by private corporations, in the crucial but little-studied sector of petrochemicals.Greening of the petrochemical industry could make a significant impact into de-carbonisation as it is highly fossil-fuel dependent and carbon-emitting. It is however difficult to abate, as the sector has over decades become extremely large and deeply embedded into numerous and far-reaching value chains that deliver useful final and intermediate products on which daily life depends – from fertiliser to pharmaceuticals. Transformation will impact both negatively and positively on the livelihoods of millions of people.In this challenging context, the paper asks the question whether market-based mechanisms such as bonds are likely to help to decarbonise the petrochemical sector.The paper focuses in particular on the experience of Asia, where some of the challenges, but also the opportunities, of transitioning away from outdated and polluting processes are most acute.Detailed case-studies of two green bond issuances in the sector provide some interesting and potentially important lessons for future issuances; this may be crucial given the very wide-spread and ambitious pledges for low to zero-carbon made by industry players.},
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Achieving the greener, more equitable and sustainable future envisaged by the SDGs needs a massive investment push into new sectors, sources of energy, modes of transport and manufacturing and agricultural processes. It must support both decarbonisation and low-carbon economic growth.One line of thought argues that the finance for such a catalytic shift must come from public resources and a developmental State. Another runs that the private sector is best equipped for this and must just be given space to do the job, albeit with some judicious de-risking by the government when needed.This paper aims to put some empirical evidence into the debate, looking at what is actually happening in terms of finance to the crucial but little studied petrochemical sector.The focuses on one of the fastest growing categories of market-based mechanisms for so-called green finance, namely green bonds, issued both by sovereign states and by private corporations, in the crucial but little-studied sector of petrochemicals.Greening of the petrochemical industry could make a significant impact into de-carbonisation as it is highly fossil-fuel dependent and carbon-emitting. It is however difficult to abate, as the sector has over decades become extremely large and deeply embedded into numerous and far-reaching value chains that deliver useful final and intermediate products on which daily life depends – from fertiliser to pharmaceuticals. Transformation will impact both negatively and positively on the livelihoods of millions of people.In this challenging context, the paper asks the question whether market-based mechanisms such as bonds are likely to help to decarbonise the petrochemical sector.The paper focuses in particular on the experience of Asia, where some of the challenges, but also the opportunities, of transitioning away from outdated and polluting processes are most acute.Detailed case-studies of two green bond issuances in the sector provide some interesting and potentially important lessons for future issuances; this may be crucial given the very wide-spread and ambitious pledges for low to zero-carbon made by industry players.
Bauer, Fredric; Kulionis, Viktoras; Oberschelp, Christopher; Pfister, Stephan; Tilsted, Joachim Peter; Finkill, Guy; Fjäll, Stephanie
Petrochemicals and Climate Change: Tracing Globally Growing Emissions and Key Blind Spots in a Fossil-Based Industry Book
Lund University, Sweden, 0000, ISBN: 1102-3651.
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