Tipping Point for Europe’s Industrial Backbone: More Closures or a Flourishing Future?
Petrochemicals are vital to Europe’s industrial landscape, though this is not always recognised. They are the building blocks of countless products and technologies that people rely on every day—from smartphones, clothing and transport to modern healthcare, clean energy and digital infrastructure. In fact, electric vehicles are increasingly a mobile set of chemical products. As Europe advances its green and digital transitions, maintaining a competitive and resilient chemical production base at home will be more important than ever.
Yet today, our industry faces serious structural challenges, notably on disadvantaged energy prices. If Europe is to maintain and grow its industrial base, we need to urgently address these issues and create the right conditions for investment and innovation, putting the Clean Industrial Deal into action.
A Challenging Global Playing Field
European chemical producers are operating at a significant cost disadvantage compared to other world regions. Energy is a central factor: in 2024, natural gas prices were four to five times higher than in the United States. The gap is expected to remain well above historical levels in the years ahead.
This situation is not limited to energy prices—it also reflects regulatory costs and complexity. European producers are contending with a cumulative burden of reporting obligations, permitting delays, and overlapping legislation on a European as well as member state level, which makes it increasingly difficult to operate and invest with confidence for the next 10-50 years.
Why This Matters
The petrochemical industry is not just another sector. It is an enabler of all major European value chains—from automotive and construction to electronics, packaging, and healthcare. Without a competitive chemical base, Europe risks undermining its own strategic goals for climate neutrality, digital leadership, and supply chain resilience.
A Call for Action
We support the call for an Industrial Deal to be placed at the heart of the European Strategic Agenda. A focused and coordinated effort is needed to:
- Put competitiveness at the core of policy design, removing barriers to investment and aligning legislation with industrial reality;
- Reduce structural cost disadvantages, especially on energy, by enabling affordable access to low-carbon sources and cross-border infrastructure;
- Support innovation and clean technology deployment through targeted public funding and a smarter regulatory framework;
- Strengthen Europe’s raw materials and feedstock security, including chemical recycling, CCU, and renewable carbon sources.
We need a Single Market that works—also for waste, recycled materials, and energy—and a policy environment that encourages the development and uptake of net-zero and circular products.
The Time Is Now
Europe’s petrochemical industry is ready to be part of the solution. But to remain in Europe, we need the right framework to operate, invest, and innovate.
Securing our industrial base is a strategic necessity. If we want to deliver on climate, resilience, and competitiveness, we must act now to create a business case for staying and growing in Europe.
READ THE FULL ANTWERP DECLARATION FOR A EUROPEAN INDUSTRIAL DEAL