Page contents Page contents Description The chemical industry is the “industry of industries” and provides key inputs to strategic sectors, such as defence, clean technologies, and digital applications. Chemicals are included in over 96% of manufactured goods. The sector faces mounting pressures from high energy prices and feedstock cost in Europe, unfair competition from low-cost countries and sluggish demand. As announced in the European Chemicals Industry Action Plan, steam crackers and ammonia production sites are the core of the chemical value chain and among the most impacted by the current crisis. It is estimated that the EU has lost at least around 15% of its steam-cracking capacity and around 9% of its ammonia production capacity relative to 2021 levels, with these losses not offset by new investments. No new steam crackers have been built in Europe in the last 30 years, resulting in average steam cracker age of ~47 years (1.5 up to 3 times older than the US, Middle East and China). © AdobeStock / Kruwt A CCT Pilot seeks to turn the tide and ensure that critical chemical plants in Europe can take investment rather than closure decisions. By the end of 2026, the CCT will aim for tailor-made actions to modernise steam crackers and ammonia plants in the EU.Work will be organised through the Critical Chemicals Alliance, uniting already at least 12 Member States and 20 regions with industry and other stakeholders to protect, maintain, and strengthen critical chemical production in Europe. Through this Alliance, the CCT will deliver tailor-made actions for steam crackers and ammonia plants. In fact, chemical plants may require distinct modernisation solutions responding to their specific challenges and technology needs. Accordingly, different groups of Member States, regions and sites can benefit from tailored action roadmaps, including support for investments in modern and more efficient assets, coupled with a step-by-step and technology neutral approach to decarbonisation for a cost-effective transition and to strengthen competitiveness. The actions can vary from equipment renovation to ensure flexible energy and feedstock supply, to optimisation of logistics and infrastructure and net-zero and circular technologies. As timing is of the essence, actions for investment and reforms should be included in a declaration, with high-level political commitments in 2026. Keys facts and figures 96% Of manufactured goods including chemicals12 Member States and 20 regions 13% Of the global chemical production comes from the EU Estimated preliminary timeline 13 January 2026Launch of the scoping dialogue with Industry, Member States and regions within the Chemicals AllianceEnd of 2026CCT Declaration with actions for investment, reforms, and joint innovations Related links Delivering on the EU’s CompetitivenessThe Competitiveness Coordination Tool aims to develop cross-border investment projects with an EU added value.
The chemical industry is the “industry of industries” and provides key inputs to strategic sectors, such as defence, clean technologies, and digital applications. Chemicals are included in over 96% of manufactured goods. The sector faces mounting pressures from high energy prices and feedstock cost in Europe, unfair competition from low-cost countries and sluggish demand. As announced in the European Chemicals Industry Action Plan, steam crackers and ammonia production sites are the core of the chemical value chain and among the most impacted by the current crisis. It is estimated that the EU has lost at least around 15% of its steam-cracking capacity and around 9% of its ammonia production capacity relative to 2021 levels, with these losses not offset by new investments. No new steam crackers have been built in Europe in the last 30 years, resulting in average steam cracker age of ~47 years (1.5 up to 3 times older than the US, Middle East and China). © AdobeStock / Kruwt
Delivering on the EU’s CompetitivenessThe Competitiveness Coordination Tool aims to develop cross-border investment projects with an EU added value.
