European powers call for a EU Critical Chemicals Act

France and Spain are among eight European countries calling for a Critical Chemicals Act to protect EU chemical production.

Signatories of the open letter are the Czech Republic, Hungary, Italy, the Netherlands, Romania, Slovakia, Spain and France.

They underline how Europe's chemical industry faces a crisis, with a 12% drop in production between 2019 and 2023 – which they attribute to energy costs and ‘fierce’ or even ‘unfair’ competition from non-EU countries.

They state that in petrochemistry alone about 20 steam crackers may be shut down by 2035, affecting 50 000 jobs.

Combatting this will require collective action, according to the signatory countries, in the form of a Critical Chemicals Act, as outlined in the Clean Industrial Deal, which the signatories support.

They believe a prospective Critical Chemicals Act would support the chemical industry to engage in a deep transformation and to encourage disruptive innovation, particularly in the development of low-carbon molecules.

The proposal suggests a list of about 15 strategic molecules that are key for preserving Europe's resilience.

France, the Netherlands, Ireland, the Czech Republic, Slovakia, Spain and Romania alerted the European Commission in April 2024 of the need to foster decarbonisation, modernisation and resilience of the existing chemical industry.

They state that a Critical Chemicals Act would enable appropriate support schemes dedicated to chemical plants for decarbonisation and modernisation investments.

The statement also highlights chemical plants whose closures would jeopardise European sovereignty, while preserving the level playing field in the internal market.

The combined countries also welcome the Chemical Industry package in providing a clearer view on regulatory evolutions.