The EU’s chemical industry is vital to its economy, supporting sectors like pharmaceuticals and construction. Employing 1.2 million people directly and 3.6 million indirectly, it achieves 67% higher productivity than the EU manufacturing average. SMEs represent 96% of the sector, employing a third of its workforce. In 2022, the industry reported EUR 760 billion in sales, making the EU the world's second-largest chemicals producer.

However, the industry faces major challenges. As the EU's third-largest CO₂ emitter, it must meet ambitious 2030 and 2050 climate targets. Geopolitical tensions and supply chain vulnerabilities emphasise the need for secure access to raw materials and energy. Rising energy costs, global competition, and fluctuating demand further complicate its outlook.

To address these issues, the European Commission launched the Transition Pathway for the Chemical Industry, with over 150 actions supporting a green and digital transition. Key initiatives include the Skills Alliance for Industrial Symbiosis (SPIRE), focusing on future workforce needs, and guidance on EU funding for investments. The Commission collaborates with stakeholders to implement these actions, aiming to ensure sustainability, competitiveness, and alignment with EU environmental goals.