Strong regional engagement is crucial for a sustainable and competitive EU chemicals sector

During its plenary session on 5 March, the European Committee of the Regions (CoR) adopted an opinion on the European Chemicals Industry Action Plan, led by rapporteur Frederiek Vermeulen (BE/EPP), member of Ichtegem Municipal Council. In the opinion, regions and cities call for close cooperation between the European Commission and local and regional authorities to ensure a place-based approach that strengthens competitiveness, strategic autonomy, and a sustainable industrial transformation in Europe's chemicals-producing regions.

The Committee welcomes the Commission's initiative, noting that the chemicals sector is a fundamental industry underpinning many European value chains, including defence, automotive, semi-conductor and pharmaceuticals. However, members warn that Europe's competitiveness is under increasing pressure from countries that combine strategic investment, lower energy costs and assertive trade policies, thereby weakening Europe's global position in the sector.

Local and regional leaders stress that the Action Plan will only succeed if it is implemented swiftly and in close partnership with local and regional authorities. A strong place-based approach is essential, reflecting the diverse industrial strengths and vulnerabilities of Europe's chemical regions. Therefore, the CoR calls for meaningful cross-regional involvement with a bottom-up approach in the newly established Critical Chemicals Alliance.

A central demand of the opinion is access to affordable and secure energy. The CoR urges the Commission to accelerate the completion of the Energy Union, invest in electricity and hydrogen infrastructure, and ensure that climate instruments such as the Emissions Trading System (ETS) and the Carbon Border Adjustment Mechanism (CBAM) are aligned with Europe's industrial competitiveness goals.

The Committee also calls for fair global trade mechanisms, stronger trade defence tools, investment in sustainable production processes and a strong protection of workers' rights. To keep innovative companies in Europe, the CoR recommends developing lead markets for European chemical products, improving access to finance and supporting public-private financing, and bridging the gap between research and industrial deployment including aligning education and training with industry needs.

Finally, members urged for simplified reporting processes, faster permitting, and better coordination and coherence in areas such as permitting, environmental compliance, circular economy, reuse of waste materials and innovation incentives across all levels of governments, in order to reduce regulatory fragmentation and accelerate much-needed investment.

Quote

Rapporteur Frederiek Vermeulen (BE/EPP), member of the Ichtegem Municipal Council: "Europe's chemical industry is not just another sector - it is a strategic backbone of our economy and security. If we fail to restore competitiveness, secure affordable energy and defend fair global trade, we risk losing entire value chains. Today, regions are stepping up and leading from the ground, shoulder to shoulder with industry, to turn innovation into jobs and growth. We know what must change. The time for hesitation is over - now Europe must deliver."

Background

• Photos and videos from the CoR's plenary session.

• In July, the European Commission presented the European Chemicals Industry Action Plan to support the chemical sector and their investments on modernisation. A key element of the Action Plan is the creation of the Critical Chemicals Alliance bringing together the Commission and stakeholders to tackle the main challenges affecting the sector.

• New CoR study on "A place-based approach to strengthening the EU chemicals industry in regions and cities" (March 2026).

Contact:

Hélène Dressen Tel: +32 471502795 [email protected]