The chemical industry is a significant contributor to the EU economy. It is simultaneously instrumental to the green and digital transition and exposed to its effects. A steady supply of (green) create reusable and recyclable consumer goods. On the other hand, chemical synthesis is an energy-intensive process inherently dependent on carbon-based feedstock (currently derived almost exclusively from fossil fuels). In addition, chemistry is a global industry with international value chains, where the EU both collaborates and competes with other countries for materials, knowledge and skills.

Transforming the European chemical industry into a sustainable motor for the green and digital transition will require investments in infrastructure, assets and skills. Focus should be placed on chemicals that are crucial to this Twin Transition, , or both. The long lead time required for the deployment of infrastructure and the development of skills means that such investments must be made now to achieve targets set for 2050.

In connection with these issues, the report at hand aims to give insights into a number of value chains that are strategic to EU economy. It considers which chemicals and innovations are vital to transforming these value chains as well as rendering them more resilient and future-fit. To this end, a participatory workshop-based foresight approach was implemented to provide a unique set of insights from stakeholders and translate them into actions and policy recommendations.
Chapter 1 provides a general introduction into foresight and an overview of the project, the definitions used, the methodology applied and the approach to project implementation.

Chapter 2 details the 20 Critical Chemicals and 10 key Future Innovations, needed to secure the four Strategic Value Chains under consideration: Batteries, Connected Clean & Autonomous Vehicles, Hydrogen Technologies & Systems, and Microelectronics & Industrial IoT. These value chains were selected as highly dependent on chemicals and non-overlapping with other EC research initiatives. Those Critical Chemicals and Future Innovations are listed in the tables below.

Chapter 3 presents In addition, each so-called factsheet contains roadmaps of actions needed to increase those value chains resilience as well as describes chemicals and the implementation of innovations. Thus, the roadmaps enable the identification and assessment of potential future actions.

Chapter 4 contains a set of key policy recommendations addressed to policy stakeholders. They focus on accelerating the digital and green transformation of the entire chemical industry, and were collected from experts throughout the project.

Finally, the Annex details methodologies and underlying analyses.

Chem4EU Foresight for chemicals : final report 

As a result of the recent pandemic, global value chains have completely transformed. This has raised concerns over the ensuing social, economic and environmental trends and related impact on the way supply chains are organised. In this context, the EU-funded ReSChape project will analyse social, economic and environmental changes and disruptions, including the COVID-19 pandemic, and evaluate their impact on supply chains. New supply chain models will be proposed, aiming towards a more streamlined supply chain process to assure humans (workers, consumers and in general citizens) to be at the center of the business also thanks to new digital technologies. It will be studied how to assure a positive social impact and innovative policy scenarios will be developed with recommendations to support the future supply chains.

The aims of this proposal are:
• To analyse social, economic and environmental changes and disruptions (including covid) and evaluate their impact on SCs, identifying related challenges in terms of relationship between countries, configuration of the network, impact on employment.

• To study and propose a set of SC models for the evolution of global SC integrating strategies like resource efficient, closed-loop and humanitarian as a way to increase EU resilience and sustainability. Particular attention will be given to the role of digitalization as a way to establish new paths for social inclusion taking into consideration the needs of urban and rural areas. Some important European sectors like fashion, automotive, medical and machine tools will be analysed with case studies and survey.

• To develop Innovative tools for monitoring and assessing sectoral trade patterns and defining mechanisms to evaluate relationship of disruptions like pandemic and global value chains taking into consideration impact on employment, economic growth, incomes etc also in the long term. Moreover, it will be analysed the impact of different trade patterns, on the EU value added of sectoral and countries with a specific focus on analyzing income inequalities and proposition of decent work and social cohesion. Particular attention will be gives to gender issues and social disparities.

• To develop innovative policy scenarios with recommendations for future global value chains: policy scenarios will be based on Key horizontal issues impacting on several sectors and will provide recommendations for EU, national and sectoral strategies, policy measures and targeted actions aimed at shaping fair, inclusive and sustainable trade patterns, value and supply chains as well as production networks.