November 2025 – The chemical industry is a cornerstone of Europe’s economy and positioned at the heart of its transition to circularity. Our industry is committed to playing its part in moving towards climate neutrality. However, European industry faces major structural challenges that hinder its move to a circular economy and threaten its competitive position on a global scale. A clear, stable, and enabling regulatory framework is urgently needed to support industry efforts.
Shifting to a circular economy is necessary to protect the planet and ensure a sustained economic model. This shift requires new skills, sustained innovation, investments, and the ability to translate technological capabilities into industrial ecosystems. High energy prices and cost of raw materials, financial uncertainty, and complex and fragmented regulatory frameworks weaken Europe’s industrial base and its global competitiveness, and hamper investments into the circular transition. Unless these barriers are broken down, Europe risks losing its competitive edge and failing to meet its circularity objectives. We welcome the Commission’s commitments to address these challenges, outlined in the Clean Industrial Deal and Chemicals Action Plan, as well as the upcoming Circular Economy Act. These commitments must now be translated into tangible and short-term action.
You can read our full position paper on a Circular Economy for the chemicals industry here.