Portugal’s Chemicals Sector Needs $35 Billion for Decarbonisation by 2050, Industry Group Says
Portugal’s chemical, petrochemical, and refining industries must invest approximately 30 billion euros ($34.99 billion) to achieve carbon neutrality by 2050, according to APQuimica. Current annual investment is about 1 billion euros, but larger capital is needed for electrification, renewable gases, biomass, and carbon capture. The sector accounts for over a third of Portugal’s industrial greenhouse gas emissions and faces challenges such as regulatory delays and competition due to subsidies elsewhere in Europe.
APQuimica, the Portuguese chemical industry group, reports that the country’s chemical, petrochemical, and refining sectors must commit to a 30 billion euro (approximately $35 billion) investment to meet net zero climate targets by 2050. This figure is based on a study with EY and represents a comprehensive decarbonisation plan involving electrification, renewable gases like green hydrogen, biomass utilization, and carbon capture, usage, and storage technologies. Currently, these sectors invest about 1 billion euros annually, but only a fraction targets decarbonisation efforts. The manufacturing industry in Portugal contributes 26% of the nation's greenhouse gas emissions, with more than one-third coming specifically from the chemical-related sectors. APQuimica, representing over 60 members including major companies like Repsol Polimeros, Bondalti, and Galp, highlighted the need to overcome disadvantages such as lengthy investment approval processes and competitive pressures caused by subsidies favored in other European countries. Despite Portugal’s relatively low electricity and natural gas prices compared to the EU average, these advantages are offset by such factors. The industry emphasizes its capacity and willingness to invest but calls for streamlined regulatory processes and equitable competitive conditions to fully support its decarbonisation objectives.
