The European Union (EU) is a political and economic union of 27 European countries operating a single market and customs union. Its institutions—the European Commission, the Council of the European Union, and the European Parliament—create and enforce binding legislation implemented by Member States. Common rules also extend to parts of the European Economic Area.
For the chemical industry, the EU is a central regulator and policy setter. It oversees the single market for chemicals and establishes cross-border rules on safety, classification and labelling, and environmental performance, notably through REACH, CLP, and the Biocidal Products Regulation, with the European Chemicals Agency (ECHA) managing registrations, evaluations, and authorisations. Industrial emissions, energy, climate, and circularity frameworks—including the Industrial Emissions Directive, the EU Emissions Trading System, waste and product stewardship laws, the Chemicals Strategy for Sustainability under the European Green Deal, and trade instruments such as the Carbon Border Adjustment Mechanism—shape production, investment, and trade. EU programs such as Horizon Europe and the Innovation Fund support R&D, decarbonisation, and innovation across the sector.