The chlor-alkali industry faces challenges related to environmental impact, energy consumption, and chemical safety. Traditional mercury cell technology has raised concerns due to mercury emissions and contamination risks. As a result, many plants are shifting toward membrane cell technology, which is more energy-efficient and environmentally friendly.

Chlorine is a hazardous chemical—its transportation, storage, and handling require stringent safety protocols. Exposure can cause respiratory distress, skin burns, and eye damage. Similarly, sodium hydroxide is highly caustic and must be handled with protective equipment to prevent injury.

Efforts to reduce the environmental footprint include closed-loop systems, improved brine purification, and renewable energy integration into the electrolysis process. Regulatory frameworks worldwide enforce strict emissions control, ensuring that chlor-alkali production aligns with environmental and public safety standards.