Firming Up Europe's Chemical Sector's Resolve
The European Chemical Industry Council (CEFIC) is pushing for a simplification of the REACh framework and more predictable regulatory requirements to empower European companies to innovate and compete on a global scale. The council's President, Ilham Kadri, has delivered a clarion call, emphasising that Europe's chemical industry is in a race against time, and urgent action is needed, particularly to address energy costs and regulatory burden.
CEFIC's role extends beyond advocacy, as it strives to create conditions for collaboration and mutual support within the chemical industry. The council is advocating for securing funding for research and development to remain competitive in the race for new technologies.
The European chemical industry is grappling with protectionist policies, rising tariffs, and soaring energy costs, which account for 40% of the average cost base. CEFIC is working tirelessly to mitigate these effects and help members navigate these external pressures.
CEFIC is also urging EU leaders to take bold, urgent action on the 10-point plan to secure a bright future for Europe's chemical industry. Building regional supply networks is an imperative to ensure greater security of supply and make Europe's industrial base more resilient to geopolitical shocks.
In an effort to tackle unfair trade practices and market distortions that harm the industry, CEFIC is advocating for expediting antidumping investigations to offer quicker relief to affected producers. The council is also enhancing efforts to diversify non-EU supply sources to decrease dependencies and tap into new markets by opening and deepening access to third-country markets.
Over the past two years, the rate of closures for European chemical production sites has surged to 10 times the historical average. To address this, CEFIC is working towards establishing dedicated funds for R&D and public-private partnerships to ensure Europe leads in sustainable, circular, and innovative chemical solutions.
CEFIC is positioning itself to emerge stronger by reinforcing Europe's strategic industries, particularly in securing key chemicals for defence and critical medicine production. The council is engaging with stakeholders, including policymakers, industry leaders, and value chain partners, to address the challenges and opportunities facing the specialty chemical sector.
The Clean Industrial Deal is a potential strategy that CEFIC may be advocating for to ensure a sustainable, competitive future for Europe's chemical industry. The council has been supported in its efforts to promote the European chemical industry and negotiate free trade agreements with third countries primarily by the European Union and its member states, with co-financing from the European Commission and member states as part of EU-wide programs aimed at strengthening competitiveness.
CEFIC is emphasizing the need for a one-stop-shop and faster, simpler procedures for access to EU funding, particularly for Small and Medium-sized Enterprises (SMEs). The council is also working towards enhancing efforts to diversify non-EU supply sources to decrease dependencies and tapping into new markets by opening and deepening access to third-country markets.
In summary, CEFIC is advocating for a more predictable regulatory environment, funding for research and development, and policies that will safeguard the future of Europe's chemical industry. The council is also working to mitigate the effects of protectionist policies, rising tariffs, and soaring energy costs, and to ensure Europe's industrial base is more resilient to geopolitical shocks. Marco Mensink, Director General of CEFIC, has called for all parties to rally together to push for these policies.
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