A New Strategic Sectoral Approach On July 8, 2025, Executive Vice-President Stéphane Séjourné outlined the European Commission’s third sectoral business plan focused on revitalizing the struggling European chemical industry. This comprehensive plan addresses major challenges including fierce unfair competition from Asia, the high cost of decarbonization, energy prices, and declining demand. Séjourné emphasized that chemistry underpins over 90% of the EU's industrial value chain and supports 1.2 million direct jobs.
Key Pillars of the Plan The plan pivots around four action levers aimed at safeguarding European chemical production. The centerpiece is the formation of an "Alliance of Critical Chemicals," tasked with prioritizing molecules and sites vital for industrial sovereignty, particularly those over-reliant on foreign imports, such as methanol. This alliance will guide investments into "critical chemical sites," regional ecosystems where existing infrastructure and talents can be modernized with EU and local financing.
To alleviate operational pressures, the Commission proposes extending State aid schemes to partially offset indirect emissions trading system (ETS) costs affecting energy-intensive chemical plants, encouraging decarbonization, including via hydrogen and circular economy markets. Demand-side support entails introducing "European content" sustainability criteria in public and private procurement to boost "made-in-Europe" chemicals. Simplification is also a focus with an omnibus package easing labeling and packaging rules, projected to save €400 million annually.
Addressing PFAS and Regulatory Review Both Séjourné and Commissioner Jessika Roswall underlined accelerating efforts to tackle PFAS pollution through monitoring, research into alternatives, and possible bans in consumer goods, while allowing continued industrial use under strict conditions where substitutes are unavailable. A REACH legislation revision is upcoming to balance strong health and environmental standards with reducing administrative burdens.
Stakeholder Impacts The plan aims to strengthen European producers by fostering innovation hubs and enhancing competitiveness in circular and clean chemistry, offering growth opportunities. National authorities gain tools for localized ecosystem development and enhanced market protections. Consumers might see benefits from sustained safety and environmentally sound products. However, industry may face compliance costs associated with modernization and regulatory adjustments, with challenges balancing investment needs and international competitiveness.
Séjourné’s blueprint sketches a policy orientation favoring industrial sovereignty and targeted EU support mechanisms with practical deadlines and funding routes. However, it treads a measured path between maintaining strong environmental regulation and lightening administrative burdens to foster innovation and competitiveness.
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