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Sir Jim Ratcliffe has called for tariffs to be placed on China as he hit out at the continent’s “idiotic” attempts to decarbonise through deindustrialisation.
In an open letter to European politicians, the billionaire Ineos owner said that unless action was taken an entire industry across the continent would be wiped out, highlighting the US’s approach of placing tariffs on cheaper imports to try and ensure benefits to domestic producers.
The European Union is soon to announce a new “clean industry deal”, reports the Telegraph, to help energy-intensive businesses adapt to climate needs and green power.
“Decarbonising Europe by deindustrialisation is idiotic. We lose jobs and security and the CO₂ simply floats back over Europe anyway,” Mr Ratcliffe wrote.
“Government policies have resulted in enormously high energy prices and crippling carbon tax bills. The industry is in crisis with such huge disadvantages. Instead of investing in growth for the future, it is fighting for survival. Government policies will shut all petrochemicals in Europe. All our major competitors are planning for withdrawal from Europe as government has failed to act time after time.
“The consequence of this policy is that Europe will import all its raw materials from the USA and China, who will benefit enormously.”
Mr Ratcliffe said his plant in Koln, Germany, paid £116m more than a US-based equivalent company for gas and electricity, while also paying a carbon tax bill in excess of £80m.
“The solution is to ban carbon tax, provide competitive energy for industry and incentivise growth and clean technology,” he continued.
“We also need tariff barriers while these changes are being implemented or there will be nothing left. This is the US approach, where they value industry and its high-value employment and they are leaving Europe behind in their dust.”
The Chemical Industries Association told UK politicians recently that plant closures and job losses were “inevitable” without action. Experts in the industry have warned over cheap chemicals being exported from China despite lower global demand.
Last week, the Guardian reported the debt of Ineos was expected to grow to 12 million euros (£10bn) this year, with two credit agencies flagging issues with taking longer to repay debts, partly as a result of energy bills being on the increase.