“The chemicals sector is the industry of industries and plays a vital role in our local economies and regional development. Chemicals are the foundation of renewable energy technologies, electric vehicles, pharmaceuticals and food production.” With these words, Alberto Cirio, President of the European Committee of the Regions’ ECON Commission, underlined the strategic importance of the sector during the 1st General Assembly of the Critical Chemicals Alliance, held at the Chemelot Industrial Park in Geleen (NL).
Cirio called for targeted funding for innovation, decarbonisation and skills development, alongside simplified regulation—particularly for SMEs—and stronger support for place-based industrial symbiosis and circular economy initiatives at local and regional level.
Drawing on his experience as President of the Piedmont Region, Cirio highlighted Piedmont as one of Europe’s leading chemical hubs that has undergone significant industrial transformation. “The chemicals sector has been central to our industrial renewal, driving innovation and creating high-quality local jobs,” he said. Piedmont’s innovation clusters operate under the Sistema Poli Piemonte model, which brings together local authorities, businesses, universities and research centres. This collaborative approach accelerates both the industrial and digital transitions while supporting sustainable regional growth. In Piedmont, the chemicals sector is a key enabler for other industries, including automotive, aerospace and agri-food. Local and regional authorities have played a crucial role in fostering innovation clusters, supporting SMEs and attracting investment.
Cirio stressed that local and regional authorities are closest to both the challenges and opportunities facing the chemicals sector and are ready to play their part in managing the transition. He emphasised the need for concrete, coordinated solutions and added that the Critical Chemicals Alliance must serve as a platform bringing together industry, EU institutions, Member States and regions to jointly identify challenges, share solutions and shape effective policies.
Highlighting the broader context, Cirio warned of a crisis in Europe’s chemical industry, marked by ageing production infrastructure, significant capacity losses in recent years and declining export performance. High energy prices, volatile raw-material supplies and growing global competition have led to falling production levels and site closures across several regions.
“Without a strong chemicals sector, Europe’s ambitions for strategic autonomy and sustainability are at risk,” Cirio stressed. “The transition to net-zero emissions is essential, but it also brings new costs and demands. Many SMEs struggle to invest in decarbonisation and digitalisation, while the regulatory environment—although necessary for safety and sustainability—can be particularly complex for smaller local players.”
The meeting was also attended by Frederiek Vermeulen, Member of the Council of the Municipality of Ichtegem and CoR Rapporteur on the European Chemicals Industry Action Plan.
Background
On 8 July, the European Commission presented the European Chemicals Industry Action Plan, aimed at supporting the sector and stimulating investment in modernisation. The Action Plan recognises the chemical industry as the industry of industries and proposes a range of measures to strengthen its competitiveness.
A central element of the Action Plan is the establishment of the Critical Chemicals Alliance, bringing together the European Commission and key stakeholders to address the main challenges facing the sector. The Alliance builds on the experience of the Transition Pathway for the EU Chemical Industry.
The European Committee of the Regions strongly welcomes the Alliance as a prime example of partnership and multi-level governance.
The Critical Chemicals Alliance will focus on:
- establishing criteria to identify critical chemical productions and molecules for the European economy;
- mapping critical molecules eligible for enhanced trade monitoring and support, including through Customs Surveillance Systems;
- supporting the EU and Member States in aligning investment priorities and coordinating EU support mechanisms with national projects, while promoting modernisation and investment in critical production capacities.