Climate Policy Engagement Overview: Solvay supports climate policy with some exceptions, and is strategically engaged. The company stated top-line support for climate action but has consistently opposed specific EU climate-related policies, including the EU Emissions Trading System (ETS) and the Carbon Border Adjustment Mechanism (CBAM). Solvay expressed some top-line support for an energy transition, but has simultaneously supported measures to weaken policies to transition the energy mix.

Top-line Messaging on Climate Policy: Solvay has communicated positive top-line positions on climate policy, however this has been limited in 2022-2023. The company supported the goals of the Paris Agreement and the need for government regulation to respond to climate change in its 2021 Annual report, published in April 2022. In a December 2020 consultation response to the EU Commission, Solvay also supported the EU Green Deal, and in an October 2020 consultation appeared to support a climate-neutral economy by 2050. The company has also expressed support for carbon pricing in the EU building and transport sectors, and for EU Member States to implement national carbon prices, in a June 2020 EU Commission consultation.

Engagement with Climate-Related Regulations: Solvay appears to be unsupportive of EU climate-related regulations that are central to achieving the bloc’s climate change response. In a November 2021 consultation with the EU Commission on the EU CBAM, Solvay appeared to oppose the policy. The company opposed the discontinuation of free allowances when the CBAM comes into force, and stated that the CBAM proposal is not appropriate for the chemicals industry. Solvay has supported the CBAM in a January 2020 consultation, but with exceptions that would diminish the policy’s initial climate ambition. Solvay was also unsupportive of the EU Emissions Trading System (ETS) in a February 2021 consultation response. Despite supporting an increase in the Linear Reduction Factor, Solvay opposed a one-off reduction cap of total greenhouse gas emissions, supported free allowances, and called for the Market Stability Reserve intake rate to remain capped at 24%.

Solvay has also engaged with mixed positions on EU energy efficiency policy. In a June 2020 EU consultation, Solvay supported a target of at least 35% for energy efficiency by 2030 in the EU, which was more ambitious than the proposed 32.5%. However, in a February 2021 EU Commission consultation on the Energy Efficiency Directive (EED), the company appeared unsupportive, emphasizing concerns surrounding cost, carbon leakage, and competitiveness. On renewable energy legislation and targets, in a February 2021 EU Commission consultation response Solvay was unsupportive of reforms to the EU Renewable Energy Directive (REDII). The company advocated against binding national targets, advocated for the inclusion of low-carbon fuels in REDII targets including ’low carbon hydrogen and synthetic fuels’, and did not clearly support an increase in renewable energy production targets in line with 2030 Climate Target Plan

Positioning on Energy Transition: While Solvay has expressed top-line support for renewables and the electrification of transport in a February 2021 consultation response, the company has expressed oppositional positions on specific EU energy policy. In a November 2021 EU consultation on the Energy Taxation Directive (ETD), Solvay appeared to oppose revisions to the Directive. Solvay was unsupportive of the removal of tax exemptions and reductions for energy intensive industries, called for a moratorium on increased fossil fuel taxes under the proposal, and called for bio-energies and high efficiency cogeneration to be exempt. In a February 2021 EU consultation on reviewing the EED, Solvay also supported the role of fossil gas in the energy mix without placing clear conditions on carbon capture and storage or methane abatement measures. In the same consultation, the company also appeared to call for weaker energy taxation provisions for industrial activities and energy-intensive industries.

Industry Association Governance: Solvay has disclosed a list of its memberships to industry associations in its 2021 Annual report, published April 2022. However, the company has not disclosed on the nature of Solvay’s memberships or the climate policy positions of its industry associations, nor has it undertaken a full audit of its associations. Solvay retains membership to Business Europe and the International Federation of Industrial Energy Consumers, both of which have traditionally engaged negatively on EU-based climate policies, including the EU ETS and CBAM.