The European chemical industry, often referred to as the “industry of industries”, is a core basis of the European Union’s economy. As a matter of fact, the chemical industry ranks fourth among all the production industries with a total of 29,000 companies. Chemical substances are essential to produce over 96 % of manufactured goods. The chemical industry not only produces final products but also enables the existence and evolution of the industry as a whole.
However, it faces growing challenges, including high energy costs relative to global competitors (such as the USA, China, and the Middle East), lack of fair competition, threat of closing factories, trade barriers, and needed investments threatening the competitiveness and long‑term sustainability of the chemical industry.
To address these vulnerabilities and support its resilience, the European Commission presented the European Chemicals Industry Action Plan in July 2025, which led to the launch of the Critical Chemicals Alliance (CCA) in October 2025.
The Alliance will serve as a strategic hub for cooperation and work on key issues between the Commission and stakeholders, including Member States, regional authorities and industry.
What are “critical substances”?
Critical substances are those which are crucial in relation to the EU economy and to strategic industries such as energy, health, defense and green transition. At the same time, these latter may face a risk of supply chain disruption or a loss production in the EU.
For example, essential products like petrochemicals, ammonia and chlorine are at the foundation of many industrial value chains as they support the manufacture of a wide range of goods, from medicines to batteries.
What will be the key actions of the Alliance?
Among the main actions, the alliance will:
- Develop criteria to identify production sites and chemical molecules that are critical for the EU economy and strategic sectors.
- Map critical molecules to facilitate enhanced monitoring and potential regulatory action.
- Support the development of critical EU chemical sites, promoting investment and encouraging innovation..
In addition, it will focus on investment barriers in alternative sources of carbon and low‑carbon technologies, in addition to deliver ing strategic analysis that aims at cost optimization and improve the regulatory framework.
What will be delivered by the Alliance?
The Alliance will provide:
- A list of critical molecules and production sites for targeted support.
- Reports on monitoring trade and investment for industry and trade defense decisions.
- Early warning notifications concerning dangers of shutdowns, layoffs, and supply chain disruptions.
How can organizations get involved?
The Alliance is open to all organizations engaged in the chemical industry, including Member States, regions, companies, associations, investors, academia, and civil society organizations. New members may join at any time. The membership criteria are established in the Alliance’s terms of reference. To become a member, an organization must sign the Alliance declaration and commit to actively participating in the aims of the Alliance. The European Commission will act as facilitator of the Alliance.
On January 13 2026, the Critical Chemicals Alliance will gather for its first-ever General Assembly at the Chemelot Chemical Park in the Netherlands. Organizations wishing to attend must apply by 19 December 2025 to attend the first General Assembly.
Being a part of this Alliance means having a voice in shaping strategies and policies that will help build a stronger, more resilient and sustainable European chemical industry.
Find out how the latest chemicals regulation shape the industry and how to stay compliant here!
Source: The Critical Chemical Alliance
