WPC 2026: Chemicals sector decarbonization stalls on carbon data gaps, low-carbon premium

This content is part of a series exploring key themes from the World Petrochemical Conference by S&P Global being held in Houston from March 23-27.

Fragmented carbon accounting standards and over-reliance on voluntary markets are stalling decarbonization efforts in the chemicals sector, with regulatory frameworks needed to create business cases that justify premium pricing for low-carbon products, a panel of chemicals experts said at the 2026 World Petrochemical Conference.

Inconsistent emissions data across supply chains prevents customers from making investment decisions, even as technology solutions exist, the panel concluded.

Regulation and incentives are needed to give customers a business case and achieve scale, Mathiew Girard Chief Executive Officer at Air Liquide said.

"We need our customers to make the decisions, and they won't do that if they don't have a business case," Girard said. "We need to get scale. I need regulation, I need incentives, a carrot and a stick."

Amy Brachio, Chief Executive Officer at Measures, cited an aluminum producer sending different emissions calculations to various companies because each preferred different measurement approaches. "We need a standardized model, otherwise you won't be able to underpin the needed change," Brachio said.

Carbon accounting must enable flexibility for money to flow from downstream customers to emission sources like crackers, Andre Argenton Chief Technology and Sustainability Offer at Dow said.

"So much of the discussion happens due to the lack of data," Argenton said. "No carbon accounting will fix the bigger vulnerability: the lack of data availability in certain steps of the value chain."

Dow is building what it describes as the first cracker with zero emissions, with some customers in voluntary markets partnering on decarbonization at scale, though no customers are broadly paying premiums currently, Argenton said.

Regulatory support and incentives are essential to create viable business cases, Girard said. "It's all about the regulation and the incentive."

Carbon standards will likely need to be country-specific, dependent on Paris Agreement goals and industrial structures, Brachio said. "We need a spark to create additional change," she said.