Germany’s key chemical sector conundrum

Climate change: Steel coil ready for transport at a steel mill in Duisburg. The energy-intensive industries in Germany are under pressure due to the high energy prices. — AP

EUROPE’S largest economy is one of the region’s most aggressive advocates for shifting energy systems away from fossil fuels, and leads the continent in emissions reduction targets and investments in renewable energy supplies.

However, Germany is also home to Europe’s largest chemicals sector which churns out plastics, paints, acids and other key inputs that are critical to manufacturers and heavy industries that form the backbone of the German economy.