BASF expands chemical recycling and low-carbon projects as EU sustainability rules tighten

BASF SE has updated its circular economy strategy, focusing on scaling its ChemCycling initiative and investing in low-carbon production technologies like electrified steam crackers. The company aims to convert mixed plastic waste into feedstock for new chemicals and reduce CO2 emissions at its Ludwigshafen site, responding to growing pressure from the EU Emissions Trading System and corporate decarbonization goals. As a major DAX-listed chemical firm, BASF competes with peers like Covestro and Lanxess. Analysts note that while its large industrial footprint makes decarbonization challenging, its investments in circular products and low-CO2 materials could strengthen long-term customer relationships in automotive, construction, and consumer sectors. The company's progress in scaling these technologies commercially will be key to its positioning under tighter sustainability regulations.