The EU chemical sector supplies virtually all other value chains, including food, healthcare, construction and transport. It provides 1,2 million direct jobs and covers around 96,000 companies across the EU. The industry is one of the safest chemical industries in the world, with a robust regulatory framework, which has been the focus of overlapping policy strategies in recent years. The energy crisis has had dire consequences on the competitiveness of the chemical industry, which is one of the most energy intensive sectors in Europe. Consequently, restructuring and site closures have increased, with jobs threatened and lost.
Speaking at the high-level meeting, industriAll Europe’s President Michael Vassiliadis stressed the need for a coherent chemicals strategy in Europe.
“If we are to transform the chemical industry and not destroy it, to achieve climate neutrality, innovations and solutions for more environmental and climate protection, ensuring safe products and processes, we must now create the conditions to keep the industry in Europe healthy and competitive”, he stressed.
The dialogue focused on the future of the REACH framework and the planned new chemicals strategy. The Clean Industrial Deal has created an overarching umbrella ensuring a new balance between economic viability, environmental protection and jobs.
“A policy framework that squeezes too tight, can suffocate the industry. And this is exactly where the problem lies today: we are currently experiencing drastic losses of jobs and value creation in an industry that offers good work and is crucial to our wider industrial base”, he continued.
IndustriAll Europe has 5 key priorities:
- Retaining a chemical industry in Europe: it must include retaining quality jobs in the chemical industry in Europe, public support must have social conditionality.
- PFAS: Many technologies that are essential for the Green Transition require PFAS (at this stage of scientific development). It is essential for our climate goals and strategic autonomy that the use of PFAS is possible for this. However, we must acknowledge the risks of these substances to our environment, and that is why there should not be either a ban or a blanket authorisation for the use of PFAS. When evaluating these substances there should be a requirement to substitute them as soon as possible, and for that we need to boost R&D as well as support the business models of those who work on this niche.
- REACH: no departure from the current authorisation and restriction routes. Substitution of hazardous substances must remain the goal; substitution plans should not be the victim of a drive to simplification.
- Lowering energy prices: Without a long-term plan for energy, the chemical industry faces a grim future. Price reductions and structural long-term solutions are key, particularly by decoupling natural gas prices from electricity prices.
- Support of the Critical Chemicals Act: Innovation thrives where industry operates. Every closure and every production line offshored results in the relocation of innovation and research. The initiative, brought by the French delegation in the Council of the EU, is a positive step towards reducing dependency and securing our production of key components. The CCA should focus on creating high-quality jobs and incentivising companies to upskill and reskill employees.
The chemical industry is of central importance for Europe not only from an economic perspective, but also from a security and resilience perspective. The dialogue must therefore continue – in a broader, more strategic framework. This is why, industriAll Europe is calling for a long overdue European Chemistry Summit. As with the steel and automotive industries, we need to ensure that there is a proactive European industrial plan for the chemicals and pharmaceuticals industries with investment in good industrial jobs at its heart.