India’s chemical industry, the 6th largest globally, contributes approximately 7% to the country’s GDP but is also a major contributor to greenhouse gas (GHG) emissions. To achieve NetZero, the chemical industry must undergo two critical transitions: (i) an energy transition from fossil fuels to renewable sources, and (ii) a material transition from fossil carbon to renewable carbon sources. While the government has called out energy transition as a key priority, the materials transition also requires attention. To address this, HUL has collaborated with RECEIC; an industry coalition formed under India’s G20 presidency.
Through the coalition, HUL brought together key stakeholders such as Praj Industries, Clariant, SABIC, Galaxy surfactants and others from the chemical industry to create a working group on ‘Material Transition’ for the chemical industry. This transition is pivotal in reducing India’s dependence on fossil fuel imports, transforming the nation into a hub for R&D in biobased technology, creating job opportunities in agri-allied sectors, and attracting foreign investments.
The working group led by HUL has created a knowledge paper, outlining the following five key pillars:
- Technology Development Support: Establish dedicated funds for bio-based chemicals technology, support industry-academia partnerships, and provide funding for commercialisation efforts to accelerate sustainable technology adoption.
- Industry and Economic Competitiveness: Offer incentives and tax benefits to foster innovation and attract investments across all scales of the chemical industry, enhancing competitiveness and driving economic growth.
- Supply Chain Development: Develop biomass collection infrastructure and integrate community collectives to create efficient supply chains for bio-based feedstocks.
- Risk Financing: Develop innovative financial instruments, such as green bonds, and provide subsidies for sourcing bio-based materials to reduce capital investment burdens and support sustainable initiatives.
- Green Public Procurement and Consumer Awareness: Implement mandatory procurement targets and develop consumer awareness initiatives to promote sustainable practices, encouraging green public procurement and educating consumers on the benefits of sustainable materials.
Rajat Arora, R&D Home Care Head, HUL and Chair RECEIC Working Group on Material Transition said, “The comprehensive policy framework presented in the knowledge paper aims to address the challenges of material transition and pave the way for a more sustainable future. The timing is perfect because the Government of India has introduced several new initiatives, including the BioE3 policy, and significantly increased funding for research and development through programs like the Anusandhan National Research Foundation (ANRF). By focusing on the five key pillars outlined in the report, HUL is committed to driving positive change within the industry and beyond.”
An award for “Materials Transitions” has also been introduced as a part of RECEIC Awards on Resource Efficiency and Circular Economy. This award aims to recognise and celebrate outstanding contributions to sustainability, resource efficiency, and circularity across the value chain of chemical industry.
The journey towards net zero is challenging, with high initial costs and technology gaps. Industry leaders, policymakers, and regulators must work collectively to drive scalable innovations that can reshape the chemical industry into a sustainable and circular model.
Knowledge paper on transitioning the chemical industry to a net zero pathway (PDF 19.7 MB)