Introduction
Recently, the 17th Chemical Regulatory Annual Conference (CRAC China 2025) formally concluded. At the forum, Mr. Geert Dancet, Secretary General of the Helsinki Chemicals Forum (HCF), delivered a keynote speech and unveiled the detailed contents of the European Chemicals Industry Action Plan.
In this article, we explain the key measures of this Plan and how they may directly impact chemical exporters targeting the EU market.
European Chemicals Industry Action Plan
This Plan is designed to address the severe challenges faced by the EU chemical industry, such as declining global market share, high energy costs, and production facility closures. The Plan is built upon 4 main pillars to revitalize the EU chemical industry:
Strengthening resilience: By establishing a Critical Chemicals Alliance to identify and safeguard critical molecules and their production capacity vital to the industry, and by utilizing trade defense measures to protect the market;
Securing energy supply and decarbonisation: By using measures such as the Industry Decarbonisation Accelerator Act to lower energy costs and accelerate the industry's shift towards low-carbon technologies and clean carbon sources;
Creating lead markets and promoting innovation: By introducing EU content requirements and sustainability standards to stimulate demand for clean chemical products and encourage investment in innovation;
Simplifying the regulatory framework: By revising regulations such as REACH and introducing the Chemical Omnibus packages to reduce companies' administrative burden and compliance costs.
The key initiatives within this Action Plan will inevitably have a certain direct or indirect impact on non-EU exporting companies, especially those in China.
Mapping and Identifying Critical Chemical Molecules: Escalating Trade Barriers
Critical Chemical Molecules is a new policy concept proposed by the EU in response to the vulnerability of its domestic chemical industry supply chain. According to the Member State non-paper promoting the policy, the EU will provide policy protection for the strategic molecule categories listed as below:
ethylene, propylene and butadiene, upstream olefins from the whole petrochemistry and organic chemistry;
benzene, toluene and xylene, upstream aromatics from the whole petrochemistry and organic chemistry, as well as phenol and styrene, particularly key platform for pharmaceuticals, adhesives, construction, automotive, electronics, plastics industries and detergents
ammonia and methanol, for agriculture and energetic use as well as advanced materials;
chlorine and sodium hydroxide, for health, hygiene and construction applications (PVC);
sulfur, silicon and sodium carbonates, for mobility (fuels and batteries), health, food, electronics and construction (silicones);
hydrofluoric acid, for health, batteries, electronics, advanced and flame retardant materials;
methionine and lysine, for the health and food industries.
This move by the EU signifies that it will no longer passively react to issues like supply chain disruptions, but will actively identify and support chemicals vital to the EU economy, in order to maintain critical production capacity within the EU. For domestic companies, this foreshadows a more challenging export trade environment for related chemicals.
Regulatory Simplification Coexists with Green Barriers: Adjusting Compliance Strategies
Currently, the EU is streamlining compliance procedures and providing clearer guidance through a series of Chemical Omnibus packages (such as revising mandatory font sizes for hazardous chemical labels). However, simplification absolutely does not mean relaxing control.
The EU is introducing EU content requirements and sustainability standards, aiming to stimulate demand for clean chemical products and accelerate the decarbonisation process.
The revision of the REACH Regulation has been confirmed. Mr. Geert stated that the revision proposal is expected to be released by the end of 2025. On the one hand, this revision may shorten the time for new chemicals to enter the EU market, which is beneficial for exporting companies to respond quickly to the market. On the other hand, the revision may also tighten data waiving for certain chemicals, enhance the efficiency of authorization and restriction controls, and accelerate the phasing out of the most harmful chemicals.
For companies exporting to the EU, it is necessary to closely monitor the regulatory revision dynamics, invest resources in low-carbon and sustainable production process upgrades to meet the EU's increasingly high control standards, and convert compliance costs into competitive advantages.
Final Remarks
The EU's new policy plan is, on one hand, aimed at enhancing the competitiveness of its own industry, and on the other hand, at promoting broader sustainable development; it presents both challenges and opportunities for exporting companies.
REACH24H reminds relevant companies to continuously monitor the EU's regulatory dynamics, evaluate their product portfolios, and formulate corresponding compliance and market strategies in advance.
If you have any questions on EU REACH, please feel free to contact us at customer@reach24h.com.
