As the world grapples with rising temperatures, widespread drought,
and mounting carbon restrictions, Iran’s traditionally fossil fuel-driven
petrochemical sector faces urgent pressure to overhaul its operating model. The
report urges policymakers to adopt a forward-looking, climate-oriented roadmap
grounded in institutional agility and technological transformation.
Climate Change No Longer Just an Environmental Concern
The analysis highlights climate change as a defining force in
industrial and economic decision-making. With its heavy reliance on natural gas
feedstocks and energy-intensive chemical processes, Iran’s petrochemical sector
is now under scrutiny for its carbon intensity—especially as global buyers
shift toward low-emission products.
Although the sector’s direct greenhouse gas emissions are lower than
those of steel or cement, the carbon footprint of key products such as ammonia,
methanol, and ethylene remains a growing concern. Unchecked emissions could
jeopardize Iran’s access to export markets that are tightening environmental
standards, such as the EU’s Carbon Border Adjustment Mechanism (CBAM).
Water Crisis: A Silent Threat to Southern Complexes
The report identifies water scarcity as a critical, underappreciated
threat—particularly for petrochemical hubs in Iran’s arid southern regions,
including Mahshahr, Asaluyeh, and Bandar Imam. These complexes depend heavily
on industrial-grade water for cooling, steam generation, gas treatment, and
feedstock processing.
With declining rainfall, falling groundwater levels, and increasing
salinity in southern coastal waters, the sustainability of these facilities is
at risk. The report calls for immediate investment in desalination, dry cooling
technologies, industrial wastewater recycling, and in-house water reuse systems
to bolster operational resilience.
Green Technologies: A Strategic Imperative
The shift to a green petrochemical model is no longer optional, the
report states. Emerging solutions such as green hydrogen, carbon capture and
storage (CCS), electric cracking, and renewable energy integration offer a
pathway to reduce emissions while safeguarding market share.
However, adoption requires coordinated investment, knowledge transfer,
and international cooperation. The authors call for a “technology diplomacy”
approach, supported by the National Development Fund and innovation-based
enterprises, to accelerate localization of climate-friendly solutions.
Government’s Role: Enforceable Standards and Long-Term Vision
The report emphasizes the state’s responsibility to institutionalize
green standards through enforceable regulations, tax incentives, and mandatory
climate impact assessments for new projects. It also urges the National
Petrochemical Company (NPC) to lead with a long-term decarbonization strategy
and define sector-wide benchmarks for energy efficiency and environmental
performance.
Global Green Markets: Iran’s Future Advantage
With the global petrochemical market shifting decisively toward
biodegradable polymers, bio-based resins, sustainable fuels, and recyclable
feedstocks, Iran must reframe its export strategy. Green credentials are
increasingly becoming prerequisites for global market access, driven by both
regulatory pressure and consumer demand.
To maintain relevance, the industry must focus on reducing its carbon
and water footprint, redesigning supply chains, and engaging with
environmentally conscious buyers and partners.
Resilience Means More Than Continuity
Finally, the report introduces the concept of “climate resilience” as
more than just operational continuity—it entails the capacity to adapt
structurally, innovate rapidly, and respond to climatic shocks while
maintaining economic viability and global competitiveness.
A Climate Catalyst for Policy Reform
Ultimately, the report concludes, climate change is no longer a
peripheral issue but a catalyst for industrial transformation. The
petrochemical industry can no longer operate in a vacuum. Every policy decision
must now align with a climate-centered roadmap, blending foresight, agility,
and alignment with evolving global norms.
Failure to adapt could cost Iran its place in the global green
economy; intelligent transition, on the other hand, could secure its role in a
sustainable industrial future.