Chemical and materials company BASF announced a series of climate goals, including a new target to achieve net zero Scope 1 and 2 emissions by 2050. The company also announced a significant increase in its 2030 emissions goal, with reductions of 25% targeted compared to a 2018 baseline.

The company stated that it plans to invest up to €1 billion by 2025 to reach its new climate target, with a further €2 billion to €3 billion expected by 2030.

Dr. Martin Brudermüller, Chairman of the Board of Executive Directors of BASF SE, said:

“The new climate goals underscore our determination and BASF’s commitment to the Paris Climate Agreement. Climate change is the greatest challenge of the 21st century. In response, we must adapt our processes and our product portfolio. We need to accelerate this transformation now. We must first concentrate on the initial steps of this journey, not the final ones. That is why BASF will increase its use of renewable energies. And we will accelerate the development and deployment of new CO2-free processes for the production of chemicals. With transparency and offerings to systematically and incrementally reduce the carbon footprint of BASF products throughout the entire value chain, we help our customers in all industries to reduce the carbon footprint of their own products.”

According to BASF, the development of new technologies which replace fossil fuels such as natural gas with electricity from renewable sources form the basis for its long-term transition toward net zero CO2 emissions. The company has recently announced several partnerships aimed at furthering these technologies. Earlier this month, BASF announced an agreement with chemical company SABIC and global industrial gases and engineering company Linde to develop and demonstrate solutions for electrically heated steam cracker furnaces, in a bid to significantly reduce CO2 emissions within the chemical industry. The company also recently announced a strategic partnership with Siemens Energy aimed at accelerating commercial implementation of new technologies designed to lower greenhouse gas emissions in chemical production.

According to BASF, the transition to climate neutral chemical production will drive a sharp increase in electricity usage at its major sites, with electricity demand expected to be more than three times higher than it is today from 2035.

Brudermüller added:

“A precondition for the transformation of chemical production is the reliable availability of large quantities of renewable electricity at competitive prices. At the moment, that is not the case in Germany. BASF therefore aims to participate in investments in renewable energy generation facilities to meet its own demand. Regulatory framework conditions are also essential for making this transformation economically feasible.”