Ineos is shutting down all three of its acetyls plants in Hull, UK, citing European gas prices that are 12 times higher than in the US and 8 times higher than in China. The company also criticizes carbon taxes, saying they are unsustainable and will push production to less efficient, coal-based facilities abroad. The closure highlights the tension between climate policy and industrial competitiveness. While carbon pricing aims to reduce emissions, it can lead to carbon leakage if imports from regions with weaker standards replace domestic production. The company had already invested in a hydrogen-capable plant, but that was not enough to offset the cost gap. This story is relevant to anyone tracking carbon markets, industrial decarbonization, and the effectiveness of emissions trading systems. It raises questions about how Europe can maintain its manufacturing base while meeting climate goals, and whether mechanisms like the CBAM can address the competitiveness gap.
