Plan for stronger EU chemical industry

The Commission has presented an action plan for the chemicals industry to strengthen the competitiveness and modernisation of this sector.

The action plan addresses key challenges – high energy costs, unfair global competition, and weak demand, while promoting investment in innovation and sustainability. It proposes the following measures

• Resilience and level playing field: establishing a Critical Chemical Alliance to address the risks of capacity closures in the sector and applying trade defence measures to ensure fair competition
• Affordable energy and decarbonisation: swiftly implementing the Affordable Energy Action Plan to help reduce high energy and feedstock costs
• Lead markets and innovation: highlighting fiscal incentives and tax measures to boost demand for clean chemicals
• Taking action on per- and polyfluoroalkyl substances (PFAS): minimising PFAS emissions through a robust, science-based restriction, while ensuring continued use in critical applications under strict conditions where no alternatives are available

The plan is accompanied by a simplification package, the so-called 6th Omnibus, to further streamline and simplify key EU chemicals legislation. This includes simplifying hazardous chemical labelling rules, clarifying EU cosmetics regulations, and easing registration for EU fertilising products. These measures should save at least €363 million annually for the industry. 

The EU chemical industry is the 4th largest manufacturing sector, with 29 000 companies providing 1.2 million direct jobs and supporting 19 million across supply chains. The European chemicals industry action plan builds on the Competitiveness Compass and Clean Industrial Deal, while the simplification package delivers on President von der Leyen's commitment to simplify EU laws and cut administrative burdens, helping businesses innovate and grow.

Source: EU Commission: https://commission.europa.eu/news-and-media/news/plan-stronger-eu-chemical-industry-2025-07-08_en 

The Critical Supply Group consists of companies and professionals committed to secure and resilient critical supply chains. CSG is managed by MAP UK & International. For more details, including how to get involved, or to make contact with any of the entities involved, please email info@mapukinternational.com.