Health and the Environment at Risk

The Social Democratic Group in the European Parliament was very critical of the package for the chemical industry that the Commission announced on July 8th. A statement from the Social Democrats called it a "gift to corporate interests at the expense of public health." Christophe Clergeau, a French MEP and deputy group chair, said the Commission was working for business interests instead of promoting green products. This, he claimed, went against the EU's climate policy pledges.

Jessica Roswell, EU Commissioner for Environment, Water Resilience and the Circular Economy, defended the strategy. She acknowledged that clean solutions were important, but emphasized: "Everyone can see how much pressure the chemical industry is under."

And indeed, since the energy price shock, the industry has been in a structural crisis. A recent study by the Boston Consulting Group shows that capacity utilization has fallen to 74 per cent – around 10 per cent below the historical average.

In Germany, the US corporation Dow Chemicals recently announced the closure of three major sites, putting the existence of a crucial industrial hub in Eastern Germany into question. Industry giant Covestro also plans to shut down production facilities in Rotterdam.

According to the study, comparatively high energy prices are compounded by overcapacity in China and the Middle East, uncertainties caused by possible US tariffs, outdated plants and the necessary transition to climate-neutral production.

Boosting Investments and Cutting Red-Tape

The EU Commission estimates that the industry needs additional investments of around 14 billion euros. Publicly backed loans are to help drive forward the ecological transformation. A new ‘Alliance for Critical Chemicals’ will be tasked with identifying key products and facilities that are important for Europe's strategic autonomy, for example in defence or basic chemicals.

Who will be part of the alliance and which sites will benefit from it is still open. "We are only at the beginning of the process", explained Stéphane Séjourné, Executive Vice-President of the EU Commission responsible for industrial strategy.

In addition to promoting chemical recycling processes, the Commission plans to revise the state aid guidelines for the Emissions Trading System (ETS). The aim is to relieve companies of indirect energy costs. Currently, they have to purchase pollution rights for their CO2 emissions, the costs of which are often passed on to energy-intensive industries by electricity producers. In the future, countries will be able to help the chemical industry.

The German Chemical Industry Association (VCI) welcomed the announcements and is pushing for rapid implementation. Markus Steilemann, President of the VCI, said, "For years, regulatory hurdles have stood in the way of the sector." He added that the first issues are now being resolved.

As part of the omnibus legislation, a package to reduce bureaucratic red tape, requirements for product labelling and packaging that serve consumer protection will be eased. Approval procedures will also be accelerated and reporting requirements reduced, according to Commission plans.

No Regulation of Harmful Chemicals

Particularly controversial are the proposals around so-called forever chemicals (PFAS), which are extremely long-lasting and harmful to the environment and health. Some of these substances are without alternative and strategically important, explained Commission Executive Vice-President Séjourné – for example, for defence, the textile industry and the cosmetics sector.

There are also plans to extend the deadlines by which cosmetics manufacturers must disclose harmful substances. And "under strict conditions," chemicals that have been shown to cause cancer and harm to reproduction will still be able to be used in fertilizers and cosmetics.

Commissioner Roswell said, "We want companies to come up with alternatives." However, these are not yet available, she stated, adding that there would be no health risks associated with the simplifications.

»People, workers and the environment will not benefit from these wrong solutions.«

Vicky Cann, Corporate Europe Observatory

This claim is denied by the European Trade Union Confederation (ETUC), which also cautions that industrial, agricultural, and hairdressing workers will face a significant increase in health risks. Green MEP Jutta Paulus harshly criticized the package, saying that "the Commission is putting people and the environment at risk."

Vicky Cann from the anti-lobbying organization Corporate Europe Observatory criticizes the Commission for heeding key demands of the industry. yPeople, workers and the environment will not benefit from these wrong solutions", she emphasizes.

The environmental organization BUND is calling on the Commission to withdraw the proposals. "With these laws, the EU is opening the gate to the dismantling of hard-won consumer protection standards", explains BUND.

On Tuesday, however, the Commission received support from the conservative EPP group. Right-wing and far-right MEPs believe the package does not go far enough. They demand that all environmental and climate targets be eliminated.

First published in German on 10 July 2027 in nd.Der Tag (Öffnet in neuem Fenster)