Core Viewpoint - The UK chemical industry has experienced a significant decline in production over the past four years due to multiple factors, including geopolitical tensions, the ongoing Russia-Ukraine conflict, tariff policy uncertainties, and market oversupply issues [1] Group 1: Industry Performance - The UK chemical industry peaked during the COVID-19 pandemic but saw a rapid decline after reaching a high point in 2021, with production volume decreasing by nearly 40% since then [1] - The Grangemouth petrochemical complex is highlighted as a crucial supplier of raw materials that supports the UK's manufacturing base [1] Group 2: Challenges Faced - INEOS is facing multiple challenges, including weak demand, rising energy costs, carbon costs, and broader regulatory expenses, which are severely impacting the key industries identified in the UK Industrial Strategy [1] - The chemical industry requires a buffer period and transition time to ensure it can provide net-zero solutions while continuing to support critical national infrastructure [1] Group 3: Policy Recommendations - The CIA welcomes the UK Industrial Strategy but urges for faster implementation, noting that while some measures may yield quick results for energy-intensive industries, others will not take effect until 2027 [1] - Immediate implementation of electricity cost relief measures is requested, with a caution against simply shifting the cost burden from electricity to natural gas [1] - Maintaining the current carbon allowance or free credit levels from 2027 to 2030 is essential to avoid further tightening that could jeopardize industries supporting the net-zero transition [1]