- Since February 2024, 101 sites have closed, 25Mt of chemical capacity lost, and 75,000 jobs gone.
- Replacing closed plants would cost around €70 billion.
- Energy prices in Europe are four times higher than in the US.
- Global emissions have risen by over 20 million tonnes of CO₂ due to production shifts to the US and China.
Current Challenges
Since February 2024, Europe's chemical industry has faced significant challenges, with 101 sites closed, 25 million tonnes of chemical capacity lost, and over 75,000 jobs eliminated. The cost to replace these plants is estimated at €70 billion, highlighting the severe impact on Europe's industrial base and communities.
Emissions and Production Shift
Europe's efforts to cut emissions have inadvertently led to increased global emissions, as production has shifted to the US and China, where carbon intensity is 2-3 times higher. This shift has resulted in a rise of over 20 million tonnes of CO₂ emissions globally, while Europe's competitiveness continues to erode.
Urgent Action Required
Key factors driving the industry's decline include high energy costs, rising carbon taxes, and weak trade defense. Energy prices in Europe remain around four times higher than in the United States, making it difficult for the industry to remain viable. Immediate intervention is needed to address these issues and restore competitiveness.
Proposed Solutions
To protect the industry, three measures are proposed: reducing the time for anti-dumping duties from two years to six months, suspending carbon taxes for five years, and making energy prices more competitive. These actions aim to create conditions for the industry to survive and invest in Europe again.
Future Outlook
With the right decisions, Europe can rebuild a competitive, resilient chemical industry that supports essential sectors like healthcare, clean water, and energy security. Industry leaders are ready to collaborate with the European Commission and Member States to implement practical solutions and ensure the industry's future.
