EC action plan ‘too little, too late’ says Ineos

Ineos has broke ranks with multiple EU trade bodies by saying that the European Commission (EC)’s Action Plan for the Chemicals Industry “fails to address the urgency of industry’s position”. The plan, unveiled in late June, had won support as a move in the right direction from CEFIC and Germany’s VIC.

“The plan is too little, too late,” said Tom Crotty, director of corporate affairs at Ineos (pictured). “It fails to address the real issues, while the US and China race off with the keys to our industrial base. Europe talks, they act, and that’s why investment, innovation and jobs are packing their bags and heading elsewhere.”

In particular, the company said, the plan fails to tackle two of “most immediate pressing threats to the survival of Europe’s chemical industry”: high natural gas costs and the escalating cost of carbon emissions. As an example, it cited its own facility in Cologne, which faces additional annual costs of €100 million for gas, €40 million for electricity and €100 million for carbon emissions compared to the US.

In the past two years alone, Ineos continued, over 20 chemical plants have closed in Europe. “Investment and jobs are shifting to regions with cheaper energy, no carbon penalties and industrial policies that support long-term growth. If this continues, Europe will face accelerating deindustrialisation, losing its skills base, weakening supply chains, and shifting emissions and jobs abroad.”