Work is underway in EU institutions on regulatory simplifications for the chemical industry and a broader plan to strengthen its global competitiveness, particularly in relation to China. In July, the European Commission unveiled a proposal outlining such measures and deregulation steps. More recently, the European Parliament adopted the “One Substance, One Assessment” (OSOA) package, which aims to streamline chemical safety assessments and strengthen the scientific knowledge base. A key objective of the reforms is to boost innovation across the sector.
“Europe is currently the most rigorous place in the world when it comes to checking chemicals. Nowhere else are they tested so thoroughly. This is about climate protection and ensuring that chemical production is as transparent as possible to avoid polluting the environment,”
says Dariusz Joński, Member of the European Parliament (KO), in an interview with Newseria.
“But on the other hand, the procedures cannot slow down production and sales. That is why we are calling for simplification and the use of existing data to make the sector more competitive.”
‘One Substance, One Assessment’: Consolidating EU Chemical Knowledge
Under the new rules, scientific and technical work on chemicals will be consolidated across four EU agencies. Knowledge generated under one legal act (for example, biocidal products) will be available for reuse under another (such as toy safety rules). According to the European Commission, citizens, businesses and authorities will benefit from simplified and more transparent access to chemical information, as well as greater certainty in safety assessments.
The legislation also mandates the creation of a shared EU-wide chemical data platform containing information on hazards, physicochemical properties, environmental presence, emissions, uses and sustainability. Systematic data collection will cover, among other things, the levels of chemical substances detected in blood or breast milk samples. There will also be an obligation to report research studies on chemical substances.
The package was approved by the Council of the European Union on 13 November and will enter into force 20 days after publication in the EU Official Journal. The common data platform is expected to be created within three years.
The adopted OSOA regulation is part of the broader 2020 initiative, the Chemicals Strategy for Sustainability, which aims not only to strengthen protection for citizens and the environment but also to stimulate innovation in the chemical sector. The strategy cites data showing that by 2030, global chemical production will double compared with 2018 — giving EU chemical regulations growing global importance.
Action Plan for the Chemical Industry: A Response to China’s Dominance and Europe’s Declining Competitiveness
In July, the Commission also published the long-awaited European Chemicals Industry Action Plan and the Omnibus VI package aimed at simplifying chemical regulations. These initiatives respond to the deteriorating competitive position of the European chemical industry — the world’s second-largest chemical market.
In 2023, the EU chemical sector generated €655 billion in revenues, with the wider European region reaching €850 billion. China remained the global leader, with chemical sales of €2.237 trillion, according to Deloitte’s “Future of the European Chemical Industry: Positive Prospects” report. Europe’s share of the global market has remained stuck at 13–14% for a decade — half the level recorded in 2008.
“To put it plainly, this industry must be simplified and invested in — just as China has done,”
Joński emphasizes.
“Twenty years ago, Europe’s chemical sector was roughly three times larger than China’s. Today, Europe is chasing China — partly because of excessive bureaucracy and partly because of electricity prices. Without affordable energy, there is no chemical industry. These are the two issues we must address.”
Competitiveness Continues to Decline
Cefic (the European Chemical Industry Council), in its Chemical Trends Report Q2 2025, notes that the competitiveness of the European chemical sector remains well below the 2014–2019 average due to weakening demand and uncompetitive energy prices. This is especially critical for base chemicals and petrochemicals, where China benefits from economies of scale and lower production costs.
According to Cefic, chemical production in EU member states fell by 2.4% between January and June compared with the same period the previous year. China, by contrast, recorded an 8% increase and remains the EU’s largest source of chemical imports (€17.1 billion).
“I welcome the fact that in the European Parliament we heard commitments to support several industrial sectors, simplify procedures, and adopt by 2026 a comprehensive program to support key industries — including chemicals. The truth is, without the chemical industry, there is no automotive, ceramic or metal industry. It is the backbone of the European economy,”
Joński says.
What’s in the Commission’s Plan? Modernization, Decarbonization, Strategic Alliances
The Commission’s new plan for the chemical industry focuses on modernizing the sector, particularly through support for:
- the energy transition and decarbonization,
- developing markets for green products and innovations,
- simplifying regulatory frameworks while maintaining high safety standards.
The Commission is expected to quickly implement an action plan to ensure affordable energy, including tax breaks and reductions in grid fees. Updated guidelines on compensation for indirect costs under the EU ETS are also planned. The plan further includes the creation of an Alliance for Critical Chemicals.
Omnibus VI: Cutting Red Tape and Saving the Industry Millions
The Omnibus VI package proposes changes such as:
- simplified labelling rules for chemical substances,
- updated authorization procedures for certain cosmetic ingredients,
- changes to the registration requirements for fertilizing products.
According to Commission estimates, these simplifications could save the industry at least €363 million per year.
