July 10, 2025 17:03
The European Union is scrambling to halt the production hemorrhage that is weakening the “industry of industries". With the Chemical Industry Action Plan unveiled yesterday, the Commission has put forward a strategy aimed at lowering energy costs, countering unfair competition, cutting red tape and — at the same time — spurring innovation and the green transition.
The move comes at a critical juncture: according to Cefic, the European Chemical Industry Council, the sector shed 5% of its production capacity in 2023, a sign of deindustrialization that is starting to alarm EU capitals.
First on the list is alignment with the Action Plan on Affordable Energy launched in February, designed to trim the electricity bills of a sector that competes against global giants enjoying cheaper tariffs. 
By the end of the year, Brussels will also outline a mass-balance methodology so companies can account for recycled content from chemical recycling — a step seen as crucial to attracting fresh circular-economy investment.
On the industrial front, the Commission will set up a Critical Chemical Alliance, a permanent forum with member states and stakeholders that will identify strategic plants to safeguard and coordinate projects funded at national and EU level.
The package is rounded out by a beefed-up task force to monitor chemical imports for anti-dumping purposes and a new batch of regulatory simplifications: the sixth “omnibus” legislative act is expected to save at least 363 million euros a year by trimming administrative burdens, according to Commission estimates.
Recovery will also hinge on research and sustainability. Innovation hubs devoted to green chemistry will be financed under Horizon Europe 2025-27, while the forthcoming Bioeconomy Strategy and the manufacturing decarbonization program promise to steer the sector toward low-emission processes and safer materials.
The signal, however, is not enough to reassure companies. Cefic called the plan “ important and timely first step towards boosting the competitiveness and resilience of the EU chemical industry.”
The Cefic president Ilham Kadri (pictured) is calling for swift political coordination and welcomes the synergy between the new Action Plan, the Clean Industrial Deal State Aid Framework and the announced review of the EU ETS State Aid guidelines, which is set to cover more chemical segments: “Now we need swift implementation and strong political coordination across the EU to turn this momentum into results. We look forward to the actions being delivered and further clarified, and stand ready to engage", she said.
Cefic Director General Marco Mensink (pictured) likewise pushes for a holistic vision tying all the pieces together — from the future of hydrogen and REACH simplification to the definition of critical substances and the “greening” of VAT, without overlooking — he adds — the urgent need to bring down gas prices.
"Many measures will be announced in other policies, adjacent to the Action Plan. We look forward to additional announcements and the dedicated chemical industry package at the end of this year".
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