There is no quick fix to decarbonize the chemical sector. The sector’s numerous (over 70,000) and heterogenous products, and dependence on carbon-based fuels and feedstock, create risks relating to decarbonization technology, costs, and regulations. We assume that companies will benefit from the future technological evolution and development of decarbonization options, thereby mitigating some credit risks. Decarbonization could create new markets and applications for some chemicals. While we see potential risks for chemical companies, in our view the sector's credit risks are currently manageable under existing regulatory policies.