Summary
The discussion paper from 17 June 2020, developed within a stakeholder dialogue, addresses the European chemical industry’s challenges in maintaining competitiveness within the global market. The primary concern is creating a level playing field for EU chemical production vis-à-vis other regions to attract investments needed to align with the EU Green Deal. The industry faces a decline in global market share due to high energy, feedstock costs, and a heavy regulatory burden. Regulatory complexities, frequent updates, and high administrative costs further impede the industry’s competitiveness, underscoring the need for a balanced regulatory approach to foster investments and mitigate “investment leakage.”
Key Takeaways
- Regulatory Burden: The EU chemical industry bears significant regulatory costs, amounting to about €10 billion per year, impacting its global competitiveness.
- Investment Leakage: Energy costs and regulatory complexities drive investment away from Europe to regions with more favourable conditions.
- Balanced Regulation: To ensure competitiveness, there is a need for an objective assessment of regulatory impacts and potential counterbalancing measures to maintain a level playing field.