Chemistry Industry Confronting Challenges of Reducing GHG Emissions and Improving Energy Efficiency

Freeport, Texas - April 18, 2008

As Earth Day approaches, the U.S. Senate is poised to confront the serious challenge of climate change. Energy supply and conservation – two components of a badly needed national energy policy – are the cornerstones of a comprehensive approach to climate control. American chemistry has been a leader in this area thanks to its innovative and breakthrough advancements that have brought new technologies, processes and products to reduce greenhouse gas emissions and improve energy efficiency. But without Congressional action to enhance supplies of natural gas, which the industry uses as both a fuel and a raw material for products, that leadership position is threatened.

The chemistry industry has spent $52 billion since 1970 to construct an extensive program to reduce emissions of the many types of materials that contribute to air, water and land pollution. As a result, while the residential, commercial and transportation sectors continue to see increases in their emissions, the industrial sector – which includes the chemistry industry –sees a decrease. In 1990, American chemistry was one of the first industries to voluntarily commit to reducing its greenhouse gas emissions. Since then, the chemistry industry’s greenhouse gas emissions – excluding CO2 emissions from purchased electricity – have fallen 12.5 percent in absolute terms – a reduction that would have exceeded the Kyoto Protocol. At the same time production rose 41 percent, resulting in its greenhouse gas intensity improving 38 percent.

By EPA’s own measures, the chemical industry has reduced toxic emissions by over 73 percent since the late 1980s. Over 92 percent of Superfund site cleanups are either completed or underway. Emissions of six criteria air pollutants are down over 43 percent nationwide even as the economy, GDP and population have expanded. Industrial discharges to the nation’s waterways are but a small fraction of the remaining problems that are now driven by urban and agricultural runoff. As a partial result of the advances of chemistry, the EPA reported that our air, land, and water are cleaner now than they were 30 years ago.

American chemistry has also achieved significant energy efficiency gains while reducing emissions. We have improved our energy efficiency by 51 percent since 1974, and 27 percent since 1990 – a tremendous accomplishment for such an energy-intensive industry. Through our Responsible Care® program, a global chemical industry performance initiative implemented in the U.S. by the American Chemistry Council (ACC), we require our member companies to report energy efficiency and greenhouse gas emissions intensity data annually. ACC reports aggregate industry performance to the public on our Web site – the only industry group to do so.

Our commitment extends beyond our own operations as scientists and engineers continue to develop materials to help Americans be more energy efficient.

Take the typical American home. Nearly 40 percent of the energy loss in a home is the result of air infiltration caused by wind pressure from the outside. The chemistry in plastics used in home insulation and home wrap help reduce energy use at home. The chemistry in compact fluorescent light bulbs and light-emitting diodes (LEDs) use significantly less energy than conventional light bulbs and last 10 to 20 times longer. The chemistry in appliances such as refrigerators and air conditioning equipment makes possible the insulation and coolants that has improved energy efficiency by 30 to 50 percent since the 1970s.

Outside the home, the chemistry in motor vehicles makes cars and trucks more energy efficient. Every pound of plastics and composites used to “lightweight” an automobile produces two to three pounds of weight savings in the vehicle. The chemistry in tires reduces rolling resistance to increase fuel efficiency and reduce pollution. In short, the products of chemistry help America reduce energy use, improve energy efficiency, save money and minimize greenhouse gas emissions.

Natural gas is a key feedstock for the chemistry industry to produce the energy saving products and technologies I’ve just mentioned. Our industry’s product and process breakthroughs are threatened by a Congressionally-mandated moratorium on exploration and development of new supplies of natural gas and oil on the Outer Continental Shelf. Natural gas costs are at an all time high, and those higher costs are naturally reflected in the cost of the very products that save money, energy and reduce pollution. In 2006, Congress expanded exploration opportunities in the Gulf of Mexico, but that effort pales in comparison to the need. It’s time Congress recognized the vital link between energy supply and climate controls – and acts to ensure that we have the resources necessary to address both problems.

American Chemistry’s commitment to environmental improvement remains a cornerstone to our operations and the results of this significant investment speak for themselves.

Jack N. Gerard is President and CEO of the American Chemistry Council.

About Dow

For Editorial Information:

Tracie Copeland
The Dow Chemical Company
1-979-238-3792


News Center News Releases Public Reports Security at Dow Sign-up for Texas Operations E-Updates About Texas Operations Dow in the Community Brazosport Industrial CAER 65th Anniversary Dow in Texas Sign-up for Texas Operations E-Updates Our Locations Texas Texas Operations		Chemistry Industry Confronting Challenges of Reducing GHG Emissions and Improving Energy Efficiency Freeport, Texas - April 18, 2008 As Earth Day approaches, the U.S. Senate is poised to confront the serious challenge of climate change. Energy supply and conservation – two components of a badly needed national energy policy – are the cornerstones of a comprehensive approach to climate control. American chemistry has been a leader in this area thanks to its innovative and breakthrough advancements that have brought new technologies, processes and products to reduce greenhouse gas emissions and improve energy efficiency. But without Congressional action to enhance supplies of natural gas, which the industry uses as both a fuel and a raw material for products, that leadership position is threatened. The chemistry industry has spent $52 billion since 1970 to construct an extensive program to reduce emissions of the many types of materials that contribute to air, water and land pollution. As a result, while the residential, commercial and transportation sectors continue to see increases in their emissions, the industrial sector – which includes the chemistry industry –sees a decrease. In 1990, American chemistry was one of the first industries to voluntarily commit to reducing its greenhouse gas emissions. Since then, the chemistry industry’s greenhouse gas emissions – excluding CO2 emissions from purchased electricity – have fallen 12.5 percent in absolute terms – a reduction that would have exceeded the Kyoto Protocol. At the same time production rose 41 percent, resulting in its greenhouse gas intensity improving 38 percent. By EPA’s own measures, the chemical industry has reduced toxic emissions by over 73 percent since the late 1980s. Over 92 percent of Superfund site cleanups are either completed or underway. Emissions of six criteria air pollutants are down over 43 percent nationwide even as the economy, GDP and population have expanded. Industrial discharges to the nation’s waterways are but a small fraction of the remaining problems that are now driven by urban and agricultural runoff. As a partial result of the advances of chemistry, the EPA reported that our air, land, and water are cleaner now than they were 30 years ago. American chemistry has also achieved significant energy efficiency gains while reducing emissions. We have improved our energy efficiency by 51 percent since 1974, and 27 percent since 1990 – a tremendous accomplishment for such an energy-intensive industry. Through our Responsible Care® program, a global chemical industry performance initiative implemented in the U.S. by the American Chemistry Council (ACC), we require our member companies to report energy efficiency and greenhouse gas emissions intensity data annually. ACC reports aggregate industry performance to the public on our Web site – the only industry group to do so. Our commitment extends beyond our own operations as scientists and engineers continue to develop materials to help Americans be more energy efficient. Take the typical American home. Nearly 40 percent of the energy loss in a home is the result of air infiltration caused by wind pressure from the outside. The chemistry in plastics used in home insulation and home wrap help reduce energy use at home. The chemistry in compact fluorescent light bulbs and light-emitting diodes (LEDs) use significantly less energy than conventional light bulbs and last 10 to 20 times longer. The chemistry in appliances such as refrigerators and air conditioning equipment makes possible the insulation and coolants that has improved energy efficiency by 30 to 50 percent since the 1970s. Outside the home, the chemistry in motor vehicles makes cars and trucks more energy efficient. Every pound of plastics and composites used to “lightweight” an automobile produces two to three pounds of weight savings in the vehicle. The chemistry in tires reduces rolling resistance to increase fuel efficiency and reduce pollution. In short, the products of chemistry help America reduce energy use, improve energy efficiency, save money and minimize greenhouse gas emissions. Natural gas is a key feedstock for the chemistry industry to produce the energy saving products and technologies I’ve just mentioned. Our industry’s product and process breakthroughs are threatened by a Congressionally-mandated moratorium on exploration and development of new supplies of natural gas and oil on the Outer Continental Shelf. Natural gas costs are at an all time high, and those higher costs are naturally reflected in the cost of the very products that save money, energy and reduce pollution. In 2006, Congress expanded exploration opportunities in the Gulf of Mexico, but that effort pales in comparison to the need. It’s time Congress recognized the vital link between energy supply and climate controls – and acts to ensure that we have the resources necessary to address both problems. American Chemistry’s commitment to environmental improvement remains a cornerstone to our operations and the results of this significant investment speak for themselves. Jack N. Gerard is President and CEO of the American Chemistry Council. About Dow For Editorial Information: Tracie Copeland The Dow Chemical Company 1-979-238-3792
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