European Commission Publishes the Chemical Industry Action Plan
2025-9-12
On July 8, the European Commission released a "Chemical Industry Action Plan", aiming to address the issues of high energy costs, global competition and weak demand faced by the chemical industry, while promoting investment in innovation and sustainability.
The plan aims to enhance the competitiveness of the EU¡äs chemical industry and drive its modernization. In a statement, the European Commission noted that the Action Plan is accompanied by a "Simplified Integrated Act on Chemicals", which is intended to simplify the EU¡äs legislation on key chemicals, as well as a proposal to strengthen the governance and financial sustainability of the European Chemicals Agency (ECHA).
The European Commission plans to set up a Critical Chemicals Alliance together with EU member states and stakeholders to address the risk of production capacity shutdowns in the chemical industry. This alliance will identify key production bases that require policy support and tackle trade-related issues such as supply chain dependencies.
Furthermore, the European Commission will adopt trade defense measures, while expanding the supervision of chemical imports through the existing Import Supervision Working Group.
As part of the Action Plan, another measure put forward by the European Commission is to implement the "Affordable Energy Action Plan", which aims to help reduce the high costs of energy and raw materials. This plan will extend the compensation for indirect costs under the EU Emissions Trading System (ETS) to more chemicals, support the development of low-carbon hydrogen, and build a hydrogen economy.
The Action Plan encourages the use of clean carbon sources, such as carbon capture, biomass and waste, while supporting the development of renewable energy.
The Action Plan also emphasizes the introduction of financial incentives and tax measures to boost the demand for clean chemicals, and reaffirms the European Commission¡äs commitment to reducing emissions of per- and polyfluoroalkyl substances (PFAS).
The European Commission States that, As part of ongoing efforts to enhance the EU¡¯s competitiveness, the "Simplified Integrated Act on Chemicals" aims to reduce compliance costs and administrative burdens for the chemical industry, while ensuring strong protection for human health and the environment.
The Act includes simplifying labeling rules for hazardous chemicals; clarifying EU cosmetics regulations; and simplifying the registration of EU fertilizer products by aligning information requirements with the standard rules of the EU¡¯s Registration, Evaluation, Authorization and Restriction of Chemicals (REACH). The European Commission estimates that these measures will save the chemical industry at least 363 million euros annually.
Regarding the newly released Action Plan by the European Commission, the European Chemical Industry Council (Cefic) stated in a declaration that this constitutes a crucial step toward enhancing the competitiveness and resilience of the EU¡¯s chemical industry. The top priority is to implement it promptly and strengthen political coordination across the EU to translate the plan into tangible outcomes.
The plan aims to enhance the competitiveness of the EU¡äs chemical industry and drive its modernization. In a statement, the European Commission noted that the Action Plan is accompanied by a "Simplified Integrated Act on Chemicals", which is intended to simplify the EU¡äs legislation on key chemicals, as well as a proposal to strengthen the governance and financial sustainability of the European Chemicals Agency (ECHA).
The European Commission plans to set up a Critical Chemicals Alliance together with EU member states and stakeholders to address the risk of production capacity shutdowns in the chemical industry. This alliance will identify key production bases that require policy support and tackle trade-related issues such as supply chain dependencies.
Furthermore, the European Commission will adopt trade defense measures, while expanding the supervision of chemical imports through the existing Import Supervision Working Group.
As part of the Action Plan, another measure put forward by the European Commission is to implement the "Affordable Energy Action Plan", which aims to help reduce the high costs of energy and raw materials. This plan will extend the compensation for indirect costs under the EU Emissions Trading System (ETS) to more chemicals, support the development of low-carbon hydrogen, and build a hydrogen economy.
The Action Plan encourages the use of clean carbon sources, such as carbon capture, biomass and waste, while supporting the development of renewable energy.
The Action Plan also emphasizes the introduction of financial incentives and tax measures to boost the demand for clean chemicals, and reaffirms the European Commission¡äs commitment to reducing emissions of per- and polyfluoroalkyl substances (PFAS).
The European Commission States that, As part of ongoing efforts to enhance the EU¡¯s competitiveness, the "Simplified Integrated Act on Chemicals" aims to reduce compliance costs and administrative burdens for the chemical industry, while ensuring strong protection for human health and the environment.
The Act includes simplifying labeling rules for hazardous chemicals; clarifying EU cosmetics regulations; and simplifying the registration of EU fertilizer products by aligning information requirements with the standard rules of the EU¡¯s Registration, Evaluation, Authorization and Restriction of Chemicals (REACH). The European Commission estimates that these measures will save the chemical industry at least 363 million euros annually.
Regarding the newly released Action Plan by the European Commission, the European Chemical Industry Council (Cefic) stated in a declaration that this constitutes a crucial step toward enhancing the competitiveness and resilience of the EU¡¯s chemical industry. The top priority is to implement it promptly and strengthen political coordination across the EU to translate the plan into tangible outcomes.