Home Key messages for the EU term 2024-2029

Key messages for the EU term 2024-2029

The chemical industry actively influences EU decision-making. Here you can find our key messages for the upcoming EU term.

Sustainable Chemical Industry as Ensurer of EU’s Strategic Competitiveness

The starting points for achieving strategic autonomy and, more broadly, competitiveness in the chemical industry operating in Finland are excellent. Finland has natural resources to offer, as well as technological and refining expertise in both processes and circular economy solutions, along with high-carbon footprint solutions to global challenges. Additionally, we have a European perspective on a good energy system, which produces emission-free electricity needed for the digital green transition at competitive prices. In all European decision-making, we must shift our thinking to how Finland benefits from these competitive advantages. It is important that European industrial policy supports the achievement of strategic competitiveness.

1. Strategic Competitiveness as Finland’s Strength

The European Union’s industrial policy must be harnessed to support strategic competitiveness

• The supply of critical raw materials in Finland is abundant and diverse. EU regulations need to be aligned with self-sufficiency objectives and help foster the emergence of innovations and investments aimed at achieving carbon neutrality in Finland. This includes EU regulations that influence national licensing processes, for example.
• The European chemical industry requires functional trade partnerships with third countries. Through the circular economy, dependence on imported raw materials is reduced. Free trade and similar agreements ensure the availability of key raw materials, enable access to new markets for the chemical industry, and increase exports. Therefore, the EU should prioritize free trade negotiations and the ratification of agreements with key partners (Mercosur, India, ASEAN) and initiate new negotiations with the USA.
• The EU has finally realized that the economy cannot be built on Russian gas alone. The EU must ensure that the European chemical industry has an adequate supply of various energy sources, their transmission capabilities, and energy storage options as it moves towards carbon neutrality.
• The EU should be able to adopt a more business-driven innovation and skills policy to ensure its competitiveness. Accessing EU funding and reporting, for example for innovations, should be significantly simplified. Current reporting requirements do not make funding competitive enough to secure the EU’s technological and commercial development at the global forefront. The EU needs to invest in the creation of innovation hubs widely across the EU territory.

2. Improved Regulation

Enhanced Functionality of the Single Market

• The EU’s internal market needs to be accelerated to foster strategic competitiveness and facilitate the transition to carbon neutrality and a circular economy. One crucial factor is uniform EU legislation, which should be considered comprehensively. This approach can help achieve the EU’s strategic goals of scaling up carbon neutrality and circular economy, as well as implementing key investments.
• State aid competition needs to come to an end. European states have engaged in competition for the location of various strategic investments. EU institutions must promptly devise a plan to halt state aid competition and establish common rules and financing for implementing investments in green transition.

Less regulation and more investment in promoting employment and improving the availability of skilled workers.

• The EU needs to revive the principle of better regulation and be able to streamline labor and social legislation, refraining from new legislative initiatives when they do not genuinely promote business employment within the EU. Respecting the specific characteristics of national labor market systems should be the starting point for EU action. Persistent encroachments on the competence in the field of labor and social legislation weaken businesses’ trust in the EU as an institution.
• The green transition requires expertise, and competition in Europe is fierce. Let’s ensure the recognition and validation of qualifications (including vocational skills) within the EU and efficient mobility both within the EU and from outside to the EU. Additionally, attracting skilled workers to the EU needs to be revamped to respond to the attractiveness of the USA and China.

The future of the pharmaceutical sector must be ensured in the European Union

• The environmental requirements for pharmaceutical production are tightening to the extent that they no longer support drug development within the EU. Additionally, the EU is extensively reforming its pharmaceutical legislation, which is weakening the protection of pharmaceutical companies’ marketing authorization documentation, jeopardizing the profitability of drug development. The operating conditions and competitiveness of the pharmaceutical sector within the EU must be secured.

3. Green Digital Transition

The green and digital transition requires better implementation of the Green Deal.

• The EU does not need a new Green Deal; instead, a comprehensive assessment and implementation of the existing regulations are needed from the perspective of EU competitiveness. It is necessary to examine the overall impact of a wide-ranging regulatory package, whether it guides activities in the right direction, and whether necessary raw materials can still be used in the EU.

• For example, anticipated changes to the REACH regulation are estimated to reduce the chemical industry’s turnover by 12 percent in the long term and 20 percent in the short term. Many raw materials crucial to other industries would be prohibited.

   
• Regulation concerning the transfer of recycled raw materials within the internal market needs to be dismantled to improve the conditions for the circular economy.

Climate and energy goals for the period 2030–2040

• The Commission should focus on setting targets for 2040 and addressing current shortcomings rather than opening up targets for 2030. Ensuring the competitiveness of industry and transitioning towards carbon neutrality must be secured. Crucial are various measures aimed at carbon leakage protection and promoting investments in Europe.
• The chemical industry does not believe that emissions trading targeting new fuel distributors will have the desired impact on transportation. The chemical industry supports clear and long-term emission control in transportation, best achieved through distribution obligations within the burden-sharing sector. However, it is essential to ensure the competitiveness of industry and its transport by eliminating overlapping taxes and fees on transportation.
• Acceptance of nuclear power is crucial for carbon neutrality goals.
• The green transition entails electrification, a hydrogen economy, and new sources of raw materials, all requiring energy, especially clean electricity. In implementing the Energy Efficiency Directive, it is important to ensure sufficient availability and efficient use of clean energy.

4. The Chemical Industry Requires Alternative Sources of Raw Materials

Regulatory Framework for Renewable and Circular Economy-Based Raw Material Sources

• In the future, the chemical industry will require alternative sources of raw materials and energy to replace virgin fossil resources. Recycled sustainable carbon sources should be favored, and legislative barriers associated with them should be eliminated. Such sources include all captured carbon dioxide, recycled/reused carbon, and sustainable bio-based carbon sources. The EU should ensure that comprehensive Circular Carbon Strategies are developed for recycled and renewable carbon, including chemical recycling technologies, to make Carbon Capture and Utilization (CCU) technologies attractive.
• Currently, there are deficiencies in the calculation of carbon dioxide emissions between the emissions trading sector, the effort-sharing sector, and the land-use sector. Calculation rules should be corrected to promote the widespread adoption of carbon capture technologies, enabling negative emissions and new raw material options for the chemical industry.
• The legislative framework should also promote the development of a hydrogen economy and consider green hydrogen as well as other emissions-free hydrogen production methods. Sufficient flexibility in the use of weather-dependent renewable energy should be allowed in the production of green hydrogen.
• Biodiversity legislation obligations should be designed to globally enhance environmental impacts rather than shifting activities outside the EU or onto smaller operators exempt from certain obligations.