Today, the European Commission introduced an Action Plan aimed at enhancing the competitiveness and modernization of the EU chemical sector. The plan addresses challenges such as high energy costs, global competition, and weak demand while promoting investment in innovation and sustainability. Accompanying this is a simplification omnibus on chemicals to streamline key EU legislation and a proposal to strengthen the governance of the European Chemicals Agency (ECHA).
The Action Plan includes several measures:
– Resilience and level playing field: A Critical Chemical Alliance will be established with Member States and stakeholders to address risks like capacity closures. This alliance will identify critical production sites needing policy support, tackle trade issues, apply trade defense measures for fair competition, expand chemical import monitoring, align investment priorities, coordinate projects including Important Projects of Common European Interest (IPCEIs), and support critical production sites.
– Affordable energy and decarbonization: The Commission will implement the Affordable Energy Action Plan to reduce energy costs. It has set rules for low-carbon hydrogen and plans to update state aid by year-end to lower electricity costs for more producers. Clean carbon sources are encouraged alongside renewables support. A public consultation on improving chemical recycling was launched today.
– Lead markets and innovation: Fiscal incentives will boost demand for clean chemicals. The Industry Decarbonisation Accelerator Act will set content and sustainability rules supporting market growth. Upcoming strategies aim to enhance resource efficiency, recycling, bio-based alternatives, launch Innovation Hubs, mobilize funding under Horizon Europe (2025–2027) for sustainable substitutes.
– Addressing PFAS emissions: The plan reaffirms commitment to minimize PFAS emissions through science-based restrictions while ensuring continued use in critical applications where no alternatives exist. Investment in innovation and remediation based on polluter pays principle is also prioritized.
To further enhance competitiveness, a sixth simplification omnibus was adopted reducing compliance costs while ensuring health protection. Measures include simplifying hazardous chemical labeling rules, clarifying cosmetics regulations, easing registration requirements aligned with REACH rules expected to save €363 million annually.
The ECHA Basic Regulation proposal equips ECHA with necessary resources under its growing mandate covering multiple EU regulations related to classification labeling biocidal products import/export hazardous chemicals waste management water.
The chemicals sector plays a crucial role in Europe’s economy supporting industries like automotive construction healthcare agriculture clean technologies defense providing essential materials technologies welfare security resilience economies employing 1.2 million directly supporting 19 million across supply chains.
Background information reveals that this action plan builds on previous initiatives like Competitiveness Compass Clean Industrial Deal following President’s Strategic Dialogue May 12th third sector plan after automotive steel delivering President von der Leyen’s commitment simplify laws cut administrative burdens help businesses innovate grow announced first Strategic Dialogue future Chemical Industry Europe representatives held May 12th Single Market Strategy reiterated commitment Omnibus Chemicals Industry part series Simplification Omnibus packages presented mandate fourth largest manufacturing sector 29 thousand companies providing direct jobs supporting supply chains.
For further inquiries:
Lea Zuber – Spokesperson
Phone: +32 2 29 56298
Email: [email protected]
Rüya Perincek – Press Officer
Phone: +32 2 29 94903
Email: [email protected]
