The influence of CO2 reduction policies on the location choice of chemical companies

The reason for this research was an article written by of Bremmer & Vogels (2019, January 10) in which among others Hans de Boer, chairman of VNO-NCW, indicated that the Netherlands lose foreign investment due to the difference in CO2 reduction targets between the Netherlands and Europe. Whereby this article specifically addresses the chemical industry. Limited research has been done into the influence of a climate policy on the location choice of a company. As a result, in this research the effect of a CO2 reduction policy, and the associated objectives, of a country on the location choice of a chemical company is examined. Two case studies were conducted for this study, where the investment decisions of Ineos and Borealis to invest in Antwerp were examined. The focus was on the location choice process and the location choice factors. In addition, a general ranking of the most important location choice factors is given and there is elaborated on the role of image in the location choice process. Furthermore, the data is obtained from articles, press releases and interviews. The results show that the difference in CO2 reduction policies between Antwerp and Rotterdam have not played a role in the location choice of both Ineos as Borealis. Moreover, mainly industrial-logistics factors are taken into account, which is also reflected in the general ranking of location choice factors. Additionally, image also plays a role in the location choice process, but the effect should not be overestimated. Lastly, if the Dutch government would like to attract more investment, they need to step up their game regarding their welcome policy.