The chemical industry as a key for economic development and wealth Annual meeting of PIBF Andrea Weigel, Cefic 26 March 2009

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

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

29 000 chemical companies of all size class generate yearly sales of almost 550 € billion Structure by employment size class

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

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

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€ billion reflects global competiveness

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

The chemical industry is doing its homework on energy and greenhouse gas emissions The chemical industry represents roughly 1/3 of EU manufacturing energy consumption and 4% of European GHG emission The intensity indicator shows a continuous performance improvement -50% reduction in energy intensity since 1990 -60% GHG intensity reduction since 1990 EU chemical industry greenhouse gas emissions, energy consumption and production

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

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

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

“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.” European Commission Vice President Günter Verheugen, responsible for enterprise and industry policy

Many thanks for your attention