EU pushes aid for chemicals sector amid competition, sparks environmental backlash

Europe is seeking to bolster its chemicals industry, which has seen its global market share fall from 23 % to 13 % while China’s share rose to 46 %, according to Cefic. France Chimie and other national lobbies described a systemic crisis, prompting the European Commission to launch the Critical Chemicals Alliance (CCA) and schedule a general assembly in Moselle, France. EU industrial policy spokesperson Siobhan McGarry said the alliance aims to keep the sector viable during its clean transition after more than 20 plant closures and rising fossil-fuel costs.

Industry giants such as Arkema, TotalEnergies, BASF, Dow, Syensqo and Ineos are participating, seeking a level playing field with subsidised Chinese competitors. However, the European Environmental Bureau left the alliance, arguing it would protect high-emitting, hazardous production rather than drive a greener shift, echoing concerns from Corporate Europe Observatory about classifying substances like PFAS as “critical.” Environmentalists fear the push could harm public health, the climate and raise consumer prices.