In a bold effort to future-proof one of Europe’s most critical industrial sectors, the European Commission has unveiled a comprehensive Action Plan to revitalise and modernise the EU chemicals industry.
Confronted by soaring energy costs, sluggish demand, and mounting global competition, the initiative lays out a strategic roadmap to reinforce the chemical sector’s resilience, accelerate innovation, and drive the green transition.
The plan marks a pivotal step in safeguarding the industry’s role at the heart of Europe’s economy –one that underpins everything from healthcare and clean technology to agriculture, defence, and construction.
Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy, echoed this sentiment: “Chemicals is the mother of all industries, with over 96% of manufactured goods relying on chemicals.
“Today’s action plan on chemicals is our business plan to secure this critical sector’s future in Europe. It includes all levers to put the sector back on a growth track, from production-support measures to keep our steam crackers and chemical sites in Europe, to trade defence instruments to protect our chemical businesses from unfair global competition, all the way to securing domestic demand for clean & ‘made in Europe’ chemicals.”
Bolstering competitiveness and strategic resilience
At the heart of the Commission’s proposal is the creation of a Critical Chemical Alliance, uniting Member States and industry stakeholders to prevent capacity closures, support critical production sites, and reduce external dependencies.
The Alliance will align EU and national investments, including Important Projects of Common European Interest (IPCEIs), and coordinate targeted support for facilities that underpin key industrial ecosystems.
To ensure fair global competition, the Commission will reinforce its trade defence arsenal, swiftly applying measures where foreign dumping or distortions are found.
Monitoring of chemical imports will also be stepped up through the existing Import Surveillance Task Force, helping protect domestic producers from unfair practices.
Tackling energy costs and accelerating decarbonisation
Recognising the chemicals industry’s reliance on affordable and consistent energy supplies, the Commission is fast-tracking the Affordable Energy Action Plan.
The strategy includes new rules to scale up low-carbon hydrogen use and an update to state aid frameworks, allowing more chemical producers to benefit from reduced electricity prices by the end of 2025.
Further decarbonisation efforts focus on encouraging the use of clean carbon sources such as carbon capture technologies, biomass, and waste.
A public consultation on advancing chemical recycling has also been launched, reinforcing the EU’s push towards a circular economy.
Driving innovation and clean technology markets
To stimulate demand for sustainable chemicals, the Action Plan introduces fiscal incentives and tax breaks.
It also paves the way for the upcoming Industry Decarbonisation Accelerator Act, which will set sustainability and EU content rules designed to expand markets for clean technologies.
New legislative initiatives, including the Circular Economy Act and updated Bioeconomy Strategy, aim to increase resource efficiency, support chemical recycling, and expand the market for bio-based and recycled alternatives.
The Commission will also roll out EU Innovation and Substitution Hubs and commit fresh funding under Horizon Europe (2025–2027) to accelerate the development of safer, more sustainable chemical substitutes.
Crackdown on PFAS and environmental safeguards
The Commission is doubling down on its commitment to restrict harmful per- and polyfluoroalkyl substances (PFAS).
A science-based proposal, informed by the European Chemicals Agency (ECHA), will be advanced swiftly. Where PFAS are essential and alternatives are lacking, tightly regulated exemptions will apply.
Funding will also be directed toward remediation efforts and the innovation of safer replacements, upholding the ‘polluter pays’ principle.
Regulatory simplification and ECHA reform
In a parallel move to ease compliance, the Commission has adopted its sixth simplification omnibus to streamline EU chemicals industry legislation.
Key changes include clearer hazardous labelling rules, simplified cosmetic regulations, and harmonised requirements for fertilising products. These reforms are expected to save the chemicals industry over €360m annually.
Additionally, a revised ECHA Basic Regulation will enhance the agency’s ability to manage its growing mandate, spanning everything from chemical classification to biocidal products, hazardous imports, and environmental protection.
A cornerstone of Europe’s economic future
As a backbone of Europe’s manufacturing ecosystem, the chemicals industry supplies critical materials for sectors such as healthcare, defence, clean tech, construction, and agriculture.
With this comprehensive Action Plan, the European Commission signals its commitment to securing the industry’s future as a sustainable, innovative, and globally competitive force in the 21st century.
