European Commission Launches Action Plan To Strengthen EU Chemical Industry

The European Commission has unveiled a comprehensive Action Plan for the EU chemical industry, aimed at reinforcing the sector’s global competitiveness and driving modernization. The initiative addresses key challenges such as high energy and feedstock costs, unfair global competition and weakened demand, while fostering innovation, sustainability and regulatory simplification.

A central element of the plan is the creation of a Critical Chemical Alliance, which will focus on safeguarding industrial capacity, reducing dependence on imports and preventing further site closures. In tandem, the Commission will apply trade defence measures to protect the industry from unfair pricing practices and restore a level playing field in global trade.

To ease energy burdens, the Affordable Energy Action Plan will be swiftly implemented, helping companies manage the rising costs of energy and raw materials. The Commission also aims to stimulate demand for clean and sustainable chemicals by introducing fiscal incentives and tax benefits to support low-carbon innovation and market development.

Addressing environmental concerns, the Action Plan proposes science-based restrictions on per- and polyfluoroalkyl substances (PFAS). These restrictions will aim to reduce PFAS emissions, while allowing continued use in essential applications where no viable alternatives exist, under strict regulatory conditions.

Complementing these measures is a regulatory simplification package, known as the 6th Omnibus. This package streamlines key EU chemicals legislation, including simplified labelling rules for hazardous substances, clarified regulations for cosmetics, and more accessible registration for EU fertilising products. These reforms are expected to reduce administrative burdens and save the industry at least €363 million annually.

The EU’s chemical industry is the fourth largest manufacturing sector, comprising 29,000 companies, providing 1.2 million direct jobs, and supporting another 19 million across value chains. This action plan builds on the Competitiveness Compass and the Clean Industrial Deal, while aligning with President Ursula von der Leyen’s commitment to cut red tape and empower European businesses to innovate and grow.