The European Commission has presented its Action Plan for the Chemical Industry, a response to the relocation and haemorrhaging of production capacity which Cefic estimates will amount to 5% of the total in 2023 alone. The action plan aims to address the main challenges repeatedly raised by industry associations, namely high energy costs,  global competition that is often unfair, weak domestic demand and excessive bureaucracy, while promoting investment in innovation and sustainability.

This will be accompanied by a programme to simplify chemical regulations and a proposal to strengthen the governance and financial sustainability of the European Chemicals Agency (ECHA).

With regard to the progressive loss of capacity in the chemical industry,  which is evident in the case of petrochemicals, as we have repeatedly reported in our articles, Brussels will set up the Critical Chemical Alliance together with Member States and stakeholders. This will identify critical production sites that need political support and address commercial issues such as dependencies and distortions in supply chains.

The Commission will also take action to ensure fair competition, while expanding the monitoring of imports of chemical products through the task force already in place. In Brussels’ view, the Alliance will align investment priorities, coordinate national and EU projects and support the most at-risk production sites to stimulate innovation and regional growth.

Source: https://www.polimerica.it/articolo.asp?id=34200