France and Allies Call for EU Critical Chemicals Act to Enhance Production Competitiveness
A coalition of European nations advocates for a dedicated legislative framework to support the chemical industry amid rising global competition.
A group of eight countries, led by France, has called for the European Union to establish a "Critical Chemicals Act" aimed at bolstering the competitiveness of the chemical industry in Europe.
This joint recommendation was issued ahead of the Competitiveness Council meeting of European ministers scheduled for 12 March in Brussels.
The coalition, which includes the Czech Republic, Hungary, Italy, the Netherlands, Romania, Slovakia, and Spain, asserts that the chemical sector is currently experiencing a significant crisis related to competitiveness.
According to the document, the challenges facing the industry stem from heightened energy and raw material costs, coupled with fierce and often unfair competition from outside the EU. The proposal emphasizes the importance of creating a framework that identifies approximately 15 essential chemical molecules deemed vital for supporting various strategic value chains in Europe.
These key molecules, which are essential across several industries, encompass petrochemicals, organic chemistry, pharmaceuticals, construction materials, automotive production, electronics, battery manufacturing, and agriculture.
The coalition argues that by categorizing these molecules, the EU can prioritize their production domestically, thus reducing dependency on foreign suppliers.
To facilitate this goal, the proposed legislation would offer targeted support to ensure that the specified molecules are produced within EU borders.
Additionally, there is a recommendation to alleviate energy costs for producers of electro-intensive and strategic chemicals by compensating for the indirect carbon dioxide costs included in their electricity bills, aiming to create a more favorable production environment in Europe.
This joint recommendation was issued ahead of the Competitiveness Council meeting of European ministers scheduled for 12 March in Brussels.
The coalition, which includes the Czech Republic, Hungary, Italy, the Netherlands, Romania, Slovakia, and Spain, asserts that the chemical sector is currently experiencing a significant crisis related to competitiveness.
According to the document, the challenges facing the industry stem from heightened energy and raw material costs, coupled with fierce and often unfair competition from outside the EU. The proposal emphasizes the importance of creating a framework that identifies approximately 15 essential chemical molecules deemed vital for supporting various strategic value chains in Europe.
These key molecules, which are essential across several industries, encompass petrochemicals, organic chemistry, pharmaceuticals, construction materials, automotive production, electronics, battery manufacturing, and agriculture.
The coalition argues that by categorizing these molecules, the EU can prioritize their production domestically, thus reducing dependency on foreign suppliers.
To facilitate this goal, the proposed legislation would offer targeted support to ensure that the specified molecules are produced within EU borders.
Additionally, there is a recommendation to alleviate energy costs for producers of electro-intensive and strategic chemicals by compensating for the indirect carbon dioxide costs included in their electricity bills, aiming to create a more favorable production environment in Europe.
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