Elliott said emissions cuts of 60% were driven almost entirely by plant closures rather than net zero measures, and that key chemicals now must be imported. Ten chemicals needed for products from toothpaste to solar panels have ceased UK production since 2020.
High energy costs are the main issue, Elliott said. UK gas prices are four times higher than in America, and the UK has the highest industrial electricity prices in Europe. The industry predicts a 79% surge in energy costs over the next year due to the Iran war.
The government has provided some support, including a £120 million loan for a Grangemouth ethylene plant and £100 million to reopen a Teesside bioethanol plant to avoid a carbon dioxide shortage. Elliott has written to Prime Minister Keir Starmer calling for action to arrest the decline. The Department for Business said it would continue to engage with industry on green levies and carbon tariffs.