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Cefic and Advancy report highlights pathways to strengthen EU chemical industry competitiveness

Sectorial reports

26 February 2025

Cefic and Advancy report highlights pathways to strengthen EU chemical industry competitiveness

Green transition

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A new study outlines opportunities for innovation, sustainability, and investment to reinforce the European chemical sector’s global position.

Publishing org

Editorial team

Topics
Geographical descriptors

Albania

Armenia

Austria

Belgium

Bosnia and Herzegovina

Bulgaria

Croatia

Cyprus

Czechia

Denmark

Estonia

EU-27

Finland

France

Georgia

Germany

Greece

Hungary

Iceland

Ireland

Italy

Kosovo

Latvia

Liechtenstein

Lithuania

Luxembourg

Malta

Moldova

Montenegro

Netherlands

North Macedonia

Norway

Poland

Portugal

Romania

Serbia

Slovakia

Slovenia

Spain

Sweden

Switzerland

Türkiye

Ukraine

Organisation Type

SMEs (a company with less than 250 employees)

  • Policy type

    • Green transition

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The Cefic report underscores the crucial role of the European chemical industry in the continent's economy and innovation ecosystem. Representing 5-7% of EU manufacturing turnover, the sector comprises approximately 31 000 companies, 97% of which are SMEs, and employs over 1.2 million people directly. Chemicals are integral to strategic sectors such as pharmaceuticals, electronics, and defence, contributing significantly to Europe's trade balance with a surplus of EUR 35 billion in 2023. Furthermore, Europe ranks second globally in chemical patents, reflecting the industry's role in driving innovation. Chemicals are also crucial in advancing Europe's climate neutrality and circular economy goals through sustainable materials, innovative recycling processes, and carbon footprint reduction. 

Currently, the industry faces several challenges, including high energy costs, regulatory burdens, and increased global competition. To address these, the report identifies seven key action levers: 

  1. Develop a clear industrial policy: advocate for a strategic plan that balances competitiveness, innovation, and resilience.
  2. Reduce administrative burdens: simplify regulations and accelerate permitting to encourage investment.
  3. Restore energy competitiveness: invest in affordable, low-carbon energy infrastructure and revise policies to support stable baseload power.
  4. Finance transition and innovation: increase public funding for low-carbon technologies and streamline State Aid frameworks.
  5. Foster a level playing field: strengthen global trade agreements and ensure consistent application of Green Deal regulations.
  6. Support strategic autonomy: secure critical raw materials and promote domestic recycling.
  7. Boost demand for sustainable products: encourage market uptake of net-zero and circular products through labelling, standards, and public procurement. 

 

These actions aim to restore Europe’s competitiveness, ensuring the chemical industry continues to develop while supporting broader environmental and economic goals.  

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See also

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  • TP Report
  • 26 Feb 2025

Transition Pathway for the Chemical Industry

This roadmap details the twin green and digital transition of the EU chemical sector, outlining key actions for sustainability, resilience, and competitiveness by 2050.
Categories
Digital transition EU Policy Green transition