The chemical industry as a key for economic development and wealth

Annual meeting of PIBF Andrea Weigel, Cefic 26 March 2009 1

Cefic: European Chemical Industry Council

 We are the forum and the voice of the chemical industry in Europe  Brussels based office of 150 people working with over 4,000 people across the industry  about 29,000 small, medium and big chemical companies in Europe  about 1.2 million employees  about 30% of worldwide chemical production  headquarters of Cefic is Brussels, Belgium  homepage: www.cefic.org

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Structural shifts represent a great challenge for Europe and its industry

 Transformation from industry society into service society  Changes by information and communication technologies  Demographic trends: ageing population  Sustainable development  Impact from climate change  EU governance  Global competition/ protectionism  Economic crises

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29 000 chemical companies of all size class generate yearly sales of almost 550 € billion Structure by employment size-class* Structure by employment size class 96% 35% 28% *excl. pharmaceuticals 4

The chemical industry creates employment in many regions in Europe

 1.2 million people directly employed, generating roughly 2.4 employment indirectly.

 Employees with medium and high education account for around 80% of workers in the chemical industry.  workers with a high level of education are gaining importance, accounting for almost 27% in 2005 Source: EC (2007) European Business – Facts and Figures

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The chemical industry is an essential supplier for many other sectors EU chemical industry consumption structure 6

Chemicals generate wealth for Europe as a traded product EU trade balance in chemicals and other manufactures

 Total trade of the chemical industry amounts to 62 € billion  One of the manufacturing sectors with highest contribution to trade balance  Trade surplus of 35 competiveness € billion reflects global

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The chemical industry is a science oriented sector with an important R&D spending Total R&D spending of EU manufacturing in 2003 8

The chemical industry is doing its homework on energy and greenhouse gas emissions EU chemical industry greenhouse gas emissions, energy consumption and production

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The chemical industry represents roughly 1/3 of EU manufacturing energy consumption and 4% of European GHG emission

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The intensity indicator shows a continuous performance improvement

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-50% reduction in energy intensity since 1990

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-60% GHG intensity reduction since 1990 9

Chemicals offer innovative solutions for climate change

 Housing insulation (paints, foams, windows)  Oled lamps and LCD screens  Contribution to renewable energies  Green cars: fuel consumption  Better tyres  Fertilizers for food  Chemicals based on renewables

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Chemicals offer a more sustainable living Integration of renewable & cleaner energy sources Water and waste management Next-generation lighting Passive heating and cooling Indoor environmental quality systems Management of Distributed Energy Resources Sound insulation & active noise abatement Innovative construction & retrofitting materials Innovative building envelope Self cleaning surfaces Advanced windows Thermal insulation & management Efficient appliances & consumables Domestic energy storage 11

A life cycle perspective gives the full picture and shows the carbon reduction in the use phase

Source: BASF

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“Chemistry and the innovations in the chemicals industry offer a vast potential and are indispensable to tackle pressing global issues related to energy and climate change, water, food and health. It is of utmost importance that these opportunities are exploited in Europe and that we maintain a

strong production base for chemical products in the EU.

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European Commission Vice President Günter Verheugen, responsible for enterprise and industry policy 13

Many thanks for your attention 14