Establishment of the Critical Chemical Partnership by the EU

The European Commission has unveiled a series of measures aimed at bolstering the chemicals industry and ensuring fair competition within the European Union (EU).

One of the key initiatives is the establishment of a Critical Chemical Alliance. This alliance will align investment priorities, coordinate EU and national projects, and support EU critical production sites to boost innovation and regional growth. The alliance will also expand chemical import monitoring through the existing Import Surveillance Task Force.

To strengthen the European Chemicals Agency (ECHA), the Commission will apply trade defence measures to ensure fair competition. The ECHA's governance and financial sustainability will be strengthened, and the ECHA Basic Regulation proposal will equip the agency with the resources, flexibility, and structural adaptations needed to fulfill its growing mandate.

The Action Plan for the Chemicals Industry aims to address high energy costs, unfair global competition, and weak demand in the EU sector. Accompanying the plan is a simplification 'omnibus' on chemicals to streamline and simplify key EU chemicals legislation. The proposal for the omnibus does not provide any information on who presented it.

The ECHA's mandate now includes responsibilities under multiple EU regulations, including classification and labelling, biocidal products, import and export of hazardous chemicals, waste management, and water. The omnibus includes simplifying hazardous chemical labelling rules, clarifying EU cosmetics regulations, and easing registration for EU fertilising products.

The Critical Chemical Alliance will identify critical production sites needing policy support. The Affordable Energy Action Plan will be speeded up to help reduce high energy and feedstock costs. These measures are expected to save at least €363 million annually for the industry.

The Commission's sixth simplification omnibus aims to reduce compliance costs and administrative burden for the chemical industry. The measures announced are part of the Commission's efforts to promote investment in innovation and sustainability, and to address the challenges faced by the chemicals industry in the EU.