European chemical industry struggles against US competition, says Ratcliffe

Europe's petrochemical industry faces severe challenges due to high energy and carbon costs, making it uncompetitive globally, according to Ineos Group founder Jim Ratcliffe.

Francine Lacqua, Rachel Graham, Alex Longley, and Bloomberg report for Fortune.


In short:

  • Jim Ratcliffe, head of Ineos Group, claims Europe's chemical industry is at a significant disadvantage compared to the US due to high energy and carbon costs.
  • Ratcliffe suggests that the current European market structure hampers competitiveness, leading to a bleak future for the sector.
  • The industry's struggle is exacerbated by energy price volatility and regulatory challenges in Europe.

Key quote:

"Europe’s a mess for petrochemicals today. Everybody’s leaving petrochemicals in Europe, which I’ve never seen in my working life before."

— Jim Ratcliffe, founder of Ineos Group

Why this matters:

As Europe pushes towards greener energy solutions and stringent carbon reduction targets, the cost of energy and carbon emissions has surged. This shift, while essential for combating climate change, places European petrochemical companies at a disadvantage compared to regions with less stringent environmental regulations and cheaper energy sources, such as the United States and parts of Asia.

Smiling people with signs marching in support of science.
Credit: Vlad Tchompalov/Unsplash

Judge allows Trump to cut more than $1bn in National Science Foundation grants

Court declined preliminary injunction in case brought by scientists seeking to halt purge of more than 1,600 grants.

A blue and white ship at sea with LNG written on the side of it.
Credit: BNK Naval Photographer/Big Stock Photo

Wright and Burgum urge Europe to rethink methane curbs

A new EU rule will restrict imports that exceed strict limits on methane emissions. That could be a problem for American LNG exports.
Illustration of arm "netting " smokestack emissions
Copyright: Dmitrynew83/ BigStock Photo ID: 419550961

Carbon capture – the get-out-of-jail-free card that does not actually work

Engineers have been trying to perfect the technology for years but the maximum effect it could manage is far short of what the planet needs.

Boy immersed up to nose in floodwaters

In the Pacific, unkept U.S. promises on climate cut deep

Pacific island nations have seen American pledges and attention come and go with geopolitical winds. Recent U.S. pullbacks are met with disappointment but not surprise.
aerial view of Louisiana Delta

Vanishing Bayous: On a boat at ground zero for sea level rise

Folks on Louisiana's bayous, where Big Oil is really big, know firsthand the perils of sea level rise, and a group of North Carolinians recently visited there looking to start a conversation.

3D image illustrating nuclear fusion
Copyright: Yurchanka/ BigStock Photo ID: 454747091

Department of Energy allocates $134 million for fusion funding

Most of the money will go to teams working to close the gap between the private nuclear industry and research labs and universities.
Aerial view of heavy machinery clearing a forest.
Credit: Rich Carey/Big Stock Photo

Study finds Indigenous territories of Amazon rainforest can protect humans from disease

A new study finds well-preserved areas of Amazon rainforest occupied and managed by Indigenous peoples show lower incidences of multiple diseases in the regions around them.
From our Newsroom
Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

One facility has emitted cancer-causing chemicals into waterways at levels up to 520% higher than legal limits.

Regulators are underestimating health impacts from air pollution: Study

Regulators are underestimating health impacts from air pollution: Study

"The reality is, we are not exposed to one chemical at a time.”

Pennsylvania governor Josh Shapiro speaks with the state flag and American flag behind him.

Two years into his term, has Gov. Shapiro kept his promises to regulate Pennsylvania’s fracking industry?

A new report assesses the administration’s progress and makes new recommendations

silhouette of people holding hands by a lake at sunset

An open letter from EPA staff to the American public

“We cannot stand by and allow this to happen. We need to hold this administration accountable.”

wildfire retardants being sprayed by plane

New evidence links heavy metal pollution with wildfire retardants

“The chemical black box” that blankets wildfire-impacted areas is increasingly under scrutiny.

Stay informed: sign up for The Daily Climate newsletter
Top news on climate impacts, solutions, politics, drivers. Delivered to your inbox week days.