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Unleashing Europe’s potential with an industrial deal  

The European industrial sector is the backbone of our society in creating jobs, growth and prosperity for our citizens. As an enabler of all other manufacturing sectors, the European chemical industry plays a pivotal role in the overall economic development across the EU. Yet, the EU chemical industry is at tipping point: it has the highest energy costs and slower economic growth compared to its competitors, and a complex regulatory environment coupled with geopolitical tensions. At the same time, the European industrial structure is undergoing deep transformation responding to societal needs, climate change, and digitalisation.  

We need the right EU industrial policy framework to turn the tide. As such, almost 1300 industry leaders united in 2024 in signing the Antwerp Declaration for a European Industrial Deal to complement the and keep high quality jobs in Europe.  

Competitiveness: from acknowledgement to action  

Competitiveness has never been higher on the EU agenda. Initiatives like  the Clean Industrial Deal and an Omnibus simplification proposal echo the calls of industry leaders. What is needed now, is bold and urgent action to secure Europe’s industrial future. 

To reinvigorate Europe’s industrial competitiveness, we call for a comprehensive industrial policy to support business and manufacturing across Europe, which:�� 

• Builds a resilient and sustainable future: ensure strategic autonomy, foster a level playing field, and drive demand for net-zero, low-carbon, and circular products.�� 
• Addresses barriers and creates opportunities: reduce administrative and regulatory burdens, restore energy and feedstock competitiveness, finance the transition to innovation while modernising existing assets. Provide regulatory certainty (permits, derogations, stop changing requirements, harmonise across the EU, etc) to enable decision-making and facilitate investments. Enforce at the borders for a level-playing field.�� 

Creating a business case for low-carbon, circular products 

As an integral part of the European industrial fabric, the chemical industry is vital for Europe’s climate-neutrality and circularity ambitions. Although the sector is a key player in innovation and sustainability, EU chemical companies currently face a weak business case for transitioning to low-carbon and circular products. This is partly due to low demand for more expensive sustainable products. To address this, both supply and demand side measures are necessary, given the significant investments required for the transition.

Effective demand side policies stimulating the development of markets for sustainable products are necessary to support the business case for investing in Europe. The conclusions  from the multi-stakeholder Antwerp Dialogue on market pull measures call for measures that create business incentives at scale, are implemented as quickly as possible, while avoiding disproportionate administrative burden. 

����Ϸ�й��ٷ���վ’s position paper elaborates on the role of market pull measures for our sector, principles and conditions how to make them work and which product features they can target. When designing demand creation policies, EU policymakers should consider these principles and conditions to create a supportive environment that fosters innovation and growth while ensuring that the industry can meet its sustainability goals.