EU Plan to Strengthen Chemicals Sector

On 8 July 2025, the European Commission launched a new Action Plan targeting increased competitiveness and sustainability for the EU chemicals sector. This follows ongoing challenges such as high energy costs, global competition, and softer domestic demand.

Main Pillars of the Action Plan

• Boost Competitiveness & Resilience
Creation of a Critical Chemicals Alliance by end-2025 to safeguard production, stabilize supply chains, and enhance trade defense.

• Reduce Energy and Feedstock Costs
Implementation of the Affordable Energy Action Plan to lower expenses crucial for chemical manufacturing.

• Promote Innovation and Green Demand
Financial incentives and sustainable public procurement policies to drive green chemistry and circular economy principles.

• Science-Based PFAS Regulation ,/span>
Restriction of PFAS substances while permitting essential uses under strict controls in strategic sectors.

Regulatory Simplification: 6th Omnibus Package

• CLP Regulation:
Flexible labeling, less stringent rules for small packaging, mandatory digital contact info.

• Cosmetics Regulation:
Streamlined ingredient approvals, updated CMR and nanomaterial exemptions.

• Fertiliser Regulation:
Lighter REACH registration, mandatory digital CE declarations, faster market access.

*Expected cost savings: €360 million+ annually.

Upcoming Legislative Reforms

• ECHA Governance Reform:
Proposal due Q3 2025 to improve agency transparency, efficiency, and cooperation with national bodies.

• Targeted REACH Revision (Q4 2025):
Enhanced risk-based controls, mandatory digital Safety Data Sheets (SDS), and integration with Digital Product Passports.

Trade and Supply Chain Measures

• Strengthening supply chains via the Critical Chemicals Alliance.
• Enhanced trade surveillance and defense mechanisms.
• Promotion of low-carbon chemicals through subsidies and procurement policies.

Industry Action Points

• Prepare for legislative changes across REACH, CLP, and sector-specific regulations.
• Transition to digital compliance tools (digital SDS, product passports).
• Explore EU incentives for clean tech and green innovation.
• Engage actively with upcoming public consultations.

The EU’s plan balances industrial competitiveness with environmental sustainability, positioning Europe as a leader in safe and innovative chemical production.

Reference: European Commission – EU Chemicals Industry Action Plan (2025-07-08)