European Commission action plan to strengthen EU chemical industry
- Proposes a Critical Chemical Alliance to address risks from capacity closures and to apply trade defence measures for fair competition.
- Calls for swift implementation of the Affordable Energy Action Plan to lower high energy and feedstock costs.
- Seeks a robust, science-based PFAS restriction while permitting continued use in critical applications under strict conditions where no alternatives exist.
- Introduces a 6th Omnibus simplification package to simplify labelling, cosmetics rules and fertiliser registration, estimated to save €363 million annually.
Overview
The European Commission presented an action plan to strengthen competitiveness and modernisation of the EU chemicals sector, addressing high energy costs, unfair global competition and weak demand while promoting investment in innovation and sustainability.
Resilience and market measures
The plan proposes a Critical Chemical Alliance to respond to risks of capacity closures and recommends applying trade defence measures to ensure a level playing field. It also highlights fiscal incentives and tax measures aimed at boosting demand for clean chemicals.
Energy and decarbonisation
The Commission calls for swift implementation of the Affordable Energy Action Plan to reduce high energy and feedstock costs as part of measures to make the sector more competitive and decarbonise production.
PFAS and regulatory simplification
The action plan proposes a robust, science-based restriction on per- and polyfluoroalkyl substances (PFAS) designed to minimise emissions while allowing continued use in critical applications under strict conditions where no alternatives exist. It is accompanied by a simplification package—the 6th Omnibus—that simplifies hazardous chemical labelling, clarifies cosmetics rules and eases registration for EU fertilising products, with expected savings of at least €363 million annually.
Industry context
The EU chemical industry is the bloc's fourth largest manufacturing sector, comprising about 29,000 companies, providing 1.2 million direct jobs and supporting some 19 million jobs across supply chains. The action plan builds on the Competitiveness Compass and the Clean Industrial Deal and contributes to the Commission's drive to simplify laws and cut administrative burdens.
Source: European Commission
