The European Commission (EC) has presented an action plan aimed at modernizing the EU chemical industry and strengthening its global competitiveness. The plan addresses the sector’s key challenges, including high energy costs, unfair foreign competition, and market imbalances. It also aims to promote investments in innovation, ESG standards, and simplify EU chemical regulations.
“For a long time, companies in the European chemical industry, including those in Poland, have been calling for support. I believe this message has finally been heard, and both the European Commission and the European Parliament are taking the first step,” says Dariusz Joński, Member of the European Parliament (MEP) from Poland’s Civic Platform.
“In Poland, nearly 340,000 people work in the chemical sector, which accounts for almost 10% of the country’s GDP, worth around PLN 400 billion—a significant figure.”
The Strategic Role of the Chemical Industry
According to the Polish Chamber of Chemical Industry (PIPC), this sector is crucial for Europe’s economic resilience during crises. However, its position is being undermined by the rapid growth of China’s chemical production, which now accounts for approximately 44% of the global market, while the EU’s share has fallen from 27% to 13% over the past two decades.
“Energy prices must come down; otherwise, Chinese chemical products will dominate the market. Twenty years ago, Europe was leading and was three times stronger than China. Today, China is four times stronger than Europe. This is the moment when help is needed. All Polish chemical companies have issued a ‘Polish Chemistry Manifesto,’ appealing to the EC and the European Parliament for decisive action—to protect the domestic market and reduce energy costs,” Joński explains.
“Globally, the country with cheaper energy is the one that remains competitive and attracts investment. Europe cannot afford to wait.”
Key Measures of the Action Plan
The EC’s European Chemicals Industry Action Plan, announced in early July, addresses high energy costs, unfair global competition, and declining demand, while simultaneously promoting innovation and sustainability.
The Commission, in cooperation with member states and industry stakeholders, will:
- Compile a list of critical production facilities that require policy support.
- Introduce trade protection measures to ensure fair competition.
- Enhance monitoring of chemical imports into Europe.
The EC will also implement an affordable energy strategy, encouraging the use of clean carbon technologies, such as carbon capture, biomass, and waste-to-energy solutions, alongside the expansion of renewable energy sources.
The plan includes a regulatory simplification package that could reduce administrative burdens and costs for the sector, potentially saving over €360 million annually.
“Poland is known for its strong chemical industry, so we are actively engaged in this process. This is the first step toward simplifying procedures and supporting the sector, but a significant debate still lies ahead, particularly concerning the EU ETS and the upcoming ETS2 system,” notes Joński.
Polish Industry Concerns: EU ETS Reform
In July, PIPC presented recommendations for reforming the EU Emissions Trading System (EU ETS) to reflect the current economic realities. The Chamber warned that the chemical industry, along with other EU sectors, faces multiple barriers in meeting CO₂ reduction targets, including:
- Lack of infrastructure for electricity, gas/hydrogen, and CO₂ transport and storage.
- Challenges in managing waste and secondary raw materials.
PIPC also highlighted the risk of “carbon leakage,” where production shifts outside the EU, leading to increased global emissions from imports. To counter this, PIPC is calling for:
- Strong protective mechanisms,
- Adequate levels of free emissions allowances,
- Expansion of indirect cost compensation schemes.
“The EU chemical industry already complies with very high environmental standards. However, companies outside the EU often don’t follow these rules and sell their products much cheaper. This is an issue we need to address collectively,” stresses Joński.
Strengthening the European Chemicals Agency (ECHA)
The action plan is accompanied by proposals to enhance the European Chemicals Agency (ECHA) to meet its expanding mandate. This includes tasks related to:
- Classification and labeling of chemicals,
- Biocidal product regulations,
- Import and export controls of hazardous substances,
- Waste and water management.
“The EC has already taken action on the storage of hazardous chemicals. In Poland, we now have to deal with waste and chemicals imported years ago, often illegally. The EC is even considering building specialized chemical incineration plants to safely dispose of such materials. Environmental protection is a priority for the Commission, which means Europeans—and Poles—can feel safe regarding chemical production. Now, we must ensure that those who produce these chemicals also feel secure,” Joński concludes.
