The Commission has presented an action plan for the chemical industry to enhance competitiveness and drive modernisation across the sector.

The plan addresses major challenges – including high energy costs, unfair global competition, and weak demand – while promoting investment in innovation and sustainability. It proposes the following key measures:

• Resilience and a level playing field: establishing a Critical Chemical Alliance to mitigate the risk of capacity closures, and applying trade defence instruments to safeguard fair competition.

• Affordable energy and decarbonisation: fast-tracking implementation of the Affordable Energy Action Plan to reduce energy and feedstock costs.

• Lead markets and innovation: using fiscal incentives and tax measures to stimulate demand for clean chemicals.

• Action on per- and polyfluoroalkyl substances (PFAS): reducing PFAS emissions through robust, science-based restrictions while permitting use in critical applications under strict conditions where no alternatives exist.

The action plan is accompanied by a simplification package – the so-called 6th Omnibus – aimed at streamlining key EU chemicals legislation. This includes simplified labelling rules for hazardous chemicals, clearer cosmetics regulations, and easier registration for EU fertilising products. These measures are expected to save the industry at least EUR 363 million annually.

The EU chemical industry is the fourth-largest manufacturing sector, comprising 29 000 companies that provide 1.2 million direct jobs and support 19 million more across supply chains. The action plan builds on the Competitiveness Compass and the Clean Industrial Deal, while the simplification package supports President von der Leyen’s pledge to reduce administrative burdens and make EU laws more business-friendly.