The European Commission introduced an Action Plan aimed at enhancing the competitiveness and modernization of the EU chemical sector. The plan tackles major challenges such as high energy costs, unfair global competition, and weak demand, while encouraging investment in innovation and sustainability.

Accompanying the plan is a new "simplification omnibus"—the sixth under the current Commission—which seeks to streamline and simplify key EU chemicals legislation. Additionally, the Commission has proposed measures to improve the governance and financial sustainability of the European Chemicals Agency (ECHA).

The Action Plan proposes the following measures:

Resilience and Level Playing Field:

To prevent capacity closures in the chemical sector, the Commission will launch a Critical Chemical Alliance with Member States and stakeholders. This Alliance will identify vital production sites needing policy support, address supply chain dependencies and trade distortions, and apply swift trade defence measures to ensure fair competition. It will also enhance chemical import monitoring via the Import Surveillance Task Force, align EU and national investment priorities, and support key projects—including IPCEIs—to drive innovation and regional growth.

Affordable Energy and Decarbonisation:

The Commission is fast-tracking the Affordable Energy Action Plan to cut high energy and feedstock costs. Clear rules for low-carbon hydrogen are in place, and state aid measures will be updated by year-end to reduce electricity costs for more chemical producers. The plan promotes clean carbon sources—such as carbon capture, biomass, and waste—alongside renewables. A public consultation on enhancing chemical recycling has also been launched.

Lead Markets and Innovation:

The Action Plan promotes fiscal incentives and taxmeasures to drive demand for clean chemicals. The upcoming Industry Decarbonisation Accelerator Act will introduce EU content and sustainability rules to foster market growth and clean tech investment. The Bioeconomy Strategy and Circular Economy Act will enhance resource efficiency, chemical recycling, and the market for bio-based and recycled alternatives. The Commission will also establish EU Innovation and SubstitutionHubs and mobilise Horizon Europe (2025–2027) funding to accelerate safer, sustainable chemical substitutes.

Action on PFAS:

The Action Plan reaffirms the Commission’s commitment to minimise PFAS emissions through a strong, science-based restriction, allowing use only in critical applications under strict conditions where no alternatives exist. A proposal will follow swiftly after ECHA's opinion. The Commission will also invest in innovation, support remediation based on the polluter paysprinciple, and prioritise the development of safer alternatives.