The International Energy Agency said that chemical companies reduced spending on research and development (RnD) as a response to the COVID-19 pandemic and the worldwide economic slowdown. IEA’s statement was based on its survey carried out in May. According to the agency, all surveyed companies reported RnD spending decrease, with some reductions exceeding 10%.
The survey said DuPont implemented the largest RnD expenditure cut in the first quarter of 2020. DuPont first-quarter spending on RnD was cut by 12% year-on-year, followed by LG Chem (8%), Dow (above 5%), BASF, Linde (above 4%), and Mitsubishi Chemical (almost 3%).
IEA noted that the RnD spending cut might affect the companies’ ability to reduce their carbon footprint. Lower budget means slower development on digitalization; direct electrification; carbon capture, utilization, and storage as well as other specific technologies which can help to achieve net-zero greenhouse gas emissions.
