Europe’s Chemical Industries Are at Breaking Point

Europe’s chemical industries are at breaking point

Sir Jim Ratcliffe warns that Europe’s chemical industry faces “unsurvivable” conditions, citing the closure of 101 sites, the loss of 25 megatonnes (Mt) of chemical capacity, and 75,000 jobs, as well as €70 billion in asset value since February 2024. He argues Europe has “exported” emissions as production shifts to the US and China with 2–3x higher carbon intensity, increasing global CO₂ by over 20 Mt. Key causes identified are energy prices around four times those in the US, rising carbon costs, and weak trade defence that allows cheap imports to be dumped into EU markets. 

Ratcliffe frames chemicals as critical to national security, stating that they are essential to hospitals, food, defence, and energy. Ratcliff also states that the industry “is currently in the process of shutting down.” He calls on EU leaders meeting in Alden Biesen to cut anti-dumping timelines from 2 years to 6 months, consider tariffs/safeguards, suspend the carbon tax for 5 years and reassess its purpose, and make industrial energy far more competitive. 

He concludes that with the “right decisions now,” Europe can rebuild a competitive, low‑carbon chemical sector, but that “the time for discussion is over” and action must be immediate.

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Further reading: Europe’s chemical industry faces unsurvivable conditions without urgent action, warns Sir Jim Ratcliffe.

Indonesia’s 2026 nickel permit quotas slash global supply

Indonesia plans to cut nickel mining quotas in 2026 to about 260–270 million wmt (wet metric tonnes), down from 2025 levels, giving the government tighter control over a market where it supplies around 70% of global ore and aiming to match output with domestic smelter needs of roughly 250–260 million tonnes. 

Officials present this as a move away from simply maximising volumes toward more processing at home and closer management of supply and prices, helped by annual work plan and budget (RKAB) approvals that can be adjusted each year. 

One example is PT Weda Bay Nickel, whose quota falls from 42 million wmt in 2025 to 12 million in 2026, showing how individual companies can face big changes. Authorities have also suspended 190 mining permits for rule-breaking, signalling that environmental and operational performance now matter more for obtaining approvals. 

Prices reacted quickly, as three‑month nickel on the London Metal Exchange rose about 2.2% to around $17,880/tonne, briefly touching $17,980/tonne, as traders worried about a possible 60–100 million tonne gap between ore supply and expected smelter demand of 330–350 million tonnes.

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Further reading: Indonesia’s 2026 Nickel Permit Quotas Slash Global Supply

TotalEnergies cuts buybacks as low oil and gas prices weigh on profits

TotalEnergies is cutting first-quarter 2026 share buybacks by 62% to $750 million, down from a recent run rate of about $2 billion per quarter and $1.5 billion in Q4, as lower oil and gas prices offset strong refining profits and asset sale gains. Q4 adjusted net income fell to $3.8 billion from $4.4 billion a year earlier, slightly below the analyst consensus of $3.9 billion.

Management is deliberately starting at the lower end of its previously signalled buyback range, but CEO Patrick Pouyanne said this could be raised “if market conditions favour it.” The cautious stance mirrors BP’s suspension and Equinor’s 70% cut to buybacks, while Exxon and Shell have not scaled back. 

This is despite TotalEnergies’ 5% increase in oil and gas production in Q4 to offset a 15% drop in Brent and an 18% drop in LNG (via EU TTF) prices; exploration and production income fell 21.6% to $1.8 billion. However, refining and chemicals earnings surged 215% to $1 billion, supported by a 231% jump in European refining margins linked to sanctions on Russian firms and EU bans on Russian-derived fuels, resulting in Total’s shares going up 1.6% in early trading.

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Further reading: TotalEnergies cuts buybacks as low oil, gas prices weigh on profits

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Deutsche Bank issues its first green bond under the EuGB “gold standard”

Deutsche Bank has issued a €500 million green bond, its first under the EU European Green Bond (EuGB) “gold standard,” with all proceeds earmarked to refinance EU Taxonomy‑aligned residential real estate loans in the Green Buildings category of its Sustainable Instruments Framework. 

The EuGB regime has been in force since December 2024 and requires full taxonomy alignment of proceeds, detailed disclosure of use of funds, a credible green transition plan, and reporting on how financed assets support that plan. 

The bond follows Deutsche Bank’s January 2026 update of its Sustainable Instruments Framework and publication of a dedicated EuGB factsheet on intended allocations. Group Treasurer Richard Stewart said the EuGB deal offers investors a “transparent, high-quality investment opportunity” that directly backs the green transition in real estate and “underscores our role in financing the transition to a net-zero economy.”

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Further reading: Deutsche Bank Issues its First Green Bond Under the EuGB “Gold Standard”

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Sir Jim Ratcliffe, INEOS Chairman and CEO. Cover Photo Credit: INEOS