Standing Strong for Europe's Chemical Industry

So far, we’ve seen the European Commission’s Competitiveness Compass outline a new approach to competition policy and the Clean Industrial Deal focus on Energy Intensive Industries and Clean Tech. But it’s time we move from strategy to action. At the high-level strategic dialogue on 25 March, Ilham Kadri, CEFIC’s President, delivered a powerful message: 

“For us, it is way past 12 o’clock.” We’ve been ­saying it for a while now: Europe’s chemical industry is in a race against time. Without bold, urgent action — particularly to address energy costs and regulatory burden — we risk losing an entire industrial base. And it’s not just about the chemicals we produce — it’s about Europe’s future as a global economic powerhouse. 

The message is clear: we need action, and we need it now. Based on recent initiatives like the Clean Industrial Deal, Competitiveness Compass and our conversations with Commission Executive Vice President Stéphane Séjourné and Commissioner Jessika Roswall, it’s clear that our calls are being heard. But we need all levels of European decision and policy makers on board if we want to shift the current trajectory. We need support from each chemical association at the national level to make this happen. 

Geopolitical Challenges and the Need for Resilience

Building on Europe’s structural competitiveness struggles, recent geopolitical shifts are significantly impacting the chemical industry, adding layers of complexity to an already volatile landscape. Particularly for an export-oriented sector like the European chemical industry, protectionist policies and rising tariffs pose a huge challenge as the industry has heavily benefited from global market integration. With some countries opting for sky-high trade barriers, it’s clear that Europe is up against stiff competition. 

CEFIC has been steadfast in its response, advocating to tackle unfair trade practices and market distortions that harm our industry by strategically making use of the EU’s trade instruments. Concretely, we aim to expedite antidumping investigations to offer quicker relief to affected producers before they are forced to shut down. 

At the same time, we must enhance efforts to diversify our non-EU supply sources to decrease dependencies and we need to capture more growth by tapping into new markets. To this end, we need to open and deepen access to third-country markets. We therefore ask EU policymakers to get ongoing FTAs like Mercosur, India and the ASEAN countries over the finishing line. 

But beyond just managing the risks of geopolitical change, we’re positioning ourselves to emerge stronger by reinforcing Europe’s strategic industries. Our recent calls for securing key chemicals for defense and critical medicine production are pivotal in making Europe more resilient. These efforts must be supported by decisive EU actions that not only protect our interests but also ensure that European chemicals continue to be a cornerstone of our economy. 

Navigating Tariffs and Protectionism

tariffs

25.04.2025 • Topics • Strategy

The Trump Tariffs

As I speak today, protectionist policies and rising tariffs are some of the most pressing challenges confronting our industry. At CEFIC, our team is working tirelessly to mitigate these effects and help our members navigate these external pressures. What we need now is a sense of urgency, especially in the face of an escalating global trade war. We need to be especially mindful of increased competition due to the diversion of trade flows to the EU and other third markets. 

However, it is also not all trade policy. As competitiveness starts at home, it is equally important to ensure that all our policies are backed by a strong industrial strategy that fosters growth, ensures access to affordable energy and feedstocks, enables innovation from lab to industrial scale, supports the development of markets that reward sustainable products, and attracts long-term investments within Europe. We need a proactive approach to shield our sector from protectionist trends and to create an environment where businesses can flourish. 

Adapting to the Changing Regulatory Environment

The regulatory environment is evolving rapidly, and it’s not just about staying compliant — it’s about staying ahead. Sticking to the long-term direction of travel to provide the stability that business needs but adapting to the circumstances with pragmatism. At CEFIC, we’ve made it a priority to help our members not just navigate but adapt to the changes that are coming their way. Whether it’s the complexity of REACh or the push for more circularity, we’re working to simplify and streamline the regulatory framework so our companies can focus on innovation rather than paperwork. 

Through our ongoing advocacy, we’re striving for a true simplification of the REACh framework, which is essential for maintaining investment confidence in Europe while safeguarding our human and environmental protection standards. Moreover, we are also focused on ensuring that regulatory requirements become more predictable, so businesses can plan for the long term with confidence. We want to make sure that European companies are not bogged down by regulatory burdens but empowered to innovate and compete on the world stage. 

Building Regional Supply Networks in Response to Disruptions

One of the most significant lessons of recent global disruptions has been the importance of strong, resilient supply chains. For Europe, building regional supply networks is no longer just a strategy; it’s an imperative. Global supply chain disruptions have exposed vulnerabilities: we had a first alert at the time of Covid now it is even more pressing: we need to avoid overly relying one or two countries alone. We also need to build on the strength or our European single market. 

CEFIC, Brussels, Belgium is at the forefront of fostering collaboration to strengthen these regional networks. By bringing together stakeholders from across Europe, we’re working to ensure that the raw materials, chemicals, and technologies needed to drive Europe’s industries are sourced from within our region, where possible. This not only ensures greater security of supply but also reduces dependencies where necessary, making Europe’s industrial base more resilient to geopolitical shocks. 

Moreover, by focusing on sustainable and circular supply chains, we can create value and reduce costs, all while meeting our climate goals. The need for collaboration across and within sectors — from chemicals to pharmaceuticals, from energy to construction — has never been more critical. 

Leveraging Technology for Competitiveness

The future of the chemical industry lies in innovation, and Europe must remain a leader in this space. Not only to invent new technologies, but to develop them at industrial scale in the region. But to do so, we need to leverage new technologies and support our members in staying competitive. Whether it’s through the digital transformation of our operations or through the development of next-generation sustainable chemicals, technology will be key to maintaining our edge. Public funding will be essential for scaling-up our inventions and fast permitting coupled with de-risked private investment should help exploit our innovations at industrial scale. 

CEFIC is working hard to ensure that our members have the tools and support they need to innovate. One of the critical components of our 10-point rescue plan for chemicals is securing funding for research and development. The chemical industry cannot afford to fall behind in the race for new technologies, and we need the EU to provide the financial resources and the strategic vision to help us stay at the cutting edge. 

Through dedicated funds for R&D, as well as public-private partnerships, we can ensure that Europe continues to lead the way in sustainable, circular, and innovative chemical solutions. Access to EU funding requires a one stop-shop as well as faster and simpler procedures that also work for SMEs. These efforts will not only benefit the chemical industry but will also strengthen Europe’s entire industrial ecosystem. 

Engaging Stakeholders for a Stronger Future

CEFIC’s role is not just to advocate for the chemical industry but to create the conditions for collaboration and mutual support. We’re actively engaging with stakeholders — from policymakers to industry leaders and value chain partners — to ensure that the challenges and opportunities facing the specialty chemical sector are addressed head-on. 

Our ongoing dialogue with EU leaders is a testament to our commitment to ensuring that the voice of the chemical industry is heard loud and clear at the highest levels of government. 

But our job doesn’t stop there. It’s about ensuring that these discussions translate into real, tangible actions that will create a sustainable, competitive future for Europe’s chemical industry. The urgency of the moment demands that we all take action. The question is no longer “What can be done?” — it’s “How soon can we do it?” 

A Call to Action for Europe’s Chemical Industry

I’ll be honest: the road ahead is going to be tough. But I’m more confident than ever that if we act now, we can secure a bright future for Europe’s chemical industry. We need our EU leaders at all levels to take bold, urgent action on the 10-point plan. We cannot wait any longer. We need to remember that if we fall, all the downstream industry sectors will pay the price. 

Our industry representatives are standing on the wall and fighting for our sector every day. But we can’t do it alone. Now is the time for all of us to rally together — to push for the policies that will safeguard our future and ensure that Europe remains a global leader in the chemical industry. 

We’re ready. Are you?