The European Commission has introduced an Action Plan for the Chemical Sector and a Simplification Omnibus aimed at addressing the challenges faced by the EU chemical industry. The sector, crucial to both daily life and the EU economy, is currently dealing with high energy costs, unfair competition, and weak demand. The Action Plan aims to tackle these issues with concrete measures designed to boost production within the EU.
The Action Plan is structured around four pillars: strengthening resilience and global trade; securing energy and supporting decarbonisation; creating lead markets and boosting innovation; and simplifying regulations. The Simplification Omnibus specifically targets regulatory simplification, promising annual savings of at least €363 million for the industry.
To support affordable essential chemical production in the EU, key productions such as steam crackers, ammonia, chlorine, and methanol are highlighted. A Critical Chemicals Alliance will be formed to identify assets, align investments, and coordinate support including funding initiatives like Important Projects of Common European Interest (IPCEIs). The plan also includes setting up EU Critical Chemical Sites to attract investment.
Addressing energy prices remains a priority due to their significant impact on the industry. Measures include implementing an Affordable Energy Action Plan focused on reducing LNG prices through joint purchasing efforts. There is also an extension of EU ETS indirect cost compensation for more chemicals alongside support for low-carbon hydrogen development.
For a net-zero transition in the sector, a technology-neutral approach is advocated that encompasses green energy as well as clean carbon sources from biomass or chemically recycled waste. This strategy includes proposed mass balance accounting rules intended to stimulate investment in chemical recycling.
Ensuring fair competition involves enhancing monitoring activities via an Import Surveillance Task Force established in March 2025. Efforts will focus on enforcing chemical legislation to close loopholes exploited by non-compliant imports.
Chemical recycling receives support as part of efforts to manage rising plastic waste levels. While mechanical recycling is preferred for high-quality materials needed in applications like food packaging, chemical recycling plays a vital role too. A public consultation has been launched on new rules for tracking recycled content in single-use plastic bottles.
The Simplification Omnibus introduces changes across several regulations affecting chemicals, cosmetics, and fertilising products. These amendments aim to reduce burdens while maintaining safety standards through clearer procedures and timelines.
Lastly, a new ECHA Basic Regulation has been proposed to help manage increased responsibilities efficiently at the European Chemicals Agency (ECHA). This reform seeks to streamline operations by unifying budgets and establishing a reserve fund while removing governance provisions from existing regulations like REACH.
For further information about these initiatives or related inquiries:
Lea Zuber
Spokesperson
Phone: +32 2 29 56298
Email: [email protected]
Rüya Perincek
Press Officer
Phone: +32 2 29 94903
Email: [email protected]
