Energy and climate policies

As an energy-intensive company, we are committed to energy efficiency and global climate protection. To provide the necessary business solutions, companies need a predictable and stable climate and energy policy framework that is market-oriented and cost-effective. Therefore, BASF participates in the political debate and strives for solutions which combine social responsibility, environmental protection and economic feasibility.

Hydrogen is an essential raw material for the chemical industry and becomes increasingly important as a new energy vector that could significantly contribute to reducing the carbon footprint of our so-ciety. Therefore, the European Union and many countries worldwide are working on hydrogen strategies.

The “Paris Agreement” was adopted by nearly 200 countries at the United Nations climate conference in 2015 and was ratified in November 2016. As the first ever legally binding global climate change agreement, it sets out a framework that aims to avoid climate change by limiting global warming. Countries voluntarily commit themselves to national targets in the form of nationally determined contributions (NDCs) that are subject to regular review. Developed countries will support developing countries financially to support climate action to reduce emissions and help them adapt to the impact of climate change. 

Emission trading systems (ETS) and carbon pricing schemes have been introduced worldwide with the goal of mitigating climate change. The EU emissions trading scheme is a major pillar of EU climate policy that covers both the energy sector and industrial production. It aims to reduce greenhouse gas emissions at minimal cost to the economy by issuing a limited number of emission rights and subsequently trading them on the market. In some countries, the transport and building sector are under an ETS as well, e.g. in Germany.

Energy efficiency compares an output of performance, service, or goods with an input of energy, e.g. the energy needed to heat or cool a house by a certain temperature, or the electricity needed to produce a certain amount of a chemical product. Together with renewable energy, energy efficiency is regarded as an integral part of sustainable energy policy. In its Energy Efficiency 2020 report, the International Energy Agency (IEA) estimates that energy efficiency will deliver more than 40% of the reduction in energy-related greenhouse gas emissions over the next 20 years.