EU Rolls Out Action Plan to Boost Chemicals Sector Competitiveness
(MENAFN) The European Union is rolling out a comprehensive support strategy aimed at cutting production expenses and enhancing the chemical sector's competitiveness across member states, the EU Commission announced Tuesday.
The Commission revealed a detailed action plan designed to modernize and strengthen the bloc’s chemical industry.
"The Action Plan addresses key challenges, namely high energy costs, unfair global competition, and weak demand, while promoting investment in innovation and sustainability," the statement emphasized.
Central to the plan is the creation of the "Critical Chemical Alliance," a collaboration between member countries and industry stakeholders to tackle sector risks.
This alliance will pinpoint essential production facilities needing assistance and craft strategies to overcome commercial hurdles like supply chain vulnerabilities.
To safeguard the industry, the EU Commission pledges rapid deployment of trade defense mechanisms, intensifying scrutiny on chemical imports to ensure a level playing field.
"The Alliance will align investment priorities, coordinate EU and national projects, including Important Projects of Common European Interest (IPCEIs) and support EU critical production sites to boost innovation and regional growth," the Commission detailed.
The plan also targets the steep costs of energy and raw materials, with new rules introduced for low-carbon hydrogen and a revision of state aid policies aimed at reducing electricity prices for more chemical manufacturers by year-end.
Producers in the sector will gain from public subsidies designed to alleviate electricity expenses.
Furthermore, a suite of financial incentives and tax breaks will be deployed to stimulate demand for environmentally friendly chemicals.
Collectively, these initiatives are projected to generate annual savings of at least €363 million ($425.1 million) for the EU chemicals industry.
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