The European Committee of the Regions (CoR) has commissioned t33 and Spatial Foresight to carry out a study examining how a place-based approach to strengthening the EU chemicals industry can be implemented, placing local and regional actors at the heart of the process.

The EU chemical sector—accounting for around 6% of value added and 4% of total employment in the EU manufacturing sector, and comprising approximately 31,400 enterprises across the EU employing about 1.25 million people—is facing significant challenges. It has lost more than half of its share of the global market since 2003; over 20 production site closures have been announced in recent years, and production volumes have fallen by 14%. The industry also faces high energy and feedstock costs compared to competitors in the United States, China and the Middle East, while Europe’s reliance on foreign suppliers continues to grow. Moreover, the transition towards net-zero emissions, in line with EU environmental objectives, further increases production costs, especially for SMEs.

To mitigate the adverse effects of these challenges and improve the sector’s resilience and competitiveness, the European Commission published the European Chemicals Industry Action Plan (the Plan) in July 2025. The Plan aims to: improve the sector’s resilience and ensure a level playing field; ensure affordable energy and support decarbonisation; support lead markets and innovation; minimise emissions of per- and polyfluoroalkyl substances (PFAS); and reduce compliance costs and administrative burdens for the chemical industry.

The present study aims to assess the challenges and barriers to sustainable growth faced by the chemical sector and related industries across EU regions. Moreover, it investigates the opportunities that local and regional authorities (LRAs), businesses and key stakeholders can leverage to develop chemical industries within their territories. It also evaluates the main pillars of the Chemical Industry Action Plan and its strategic coherence with other EU legislation.

The study methodology is based on a mixed-methods approach, drawing on both primary and secondary sources, including desk research and data analysis, six case studies, interviews, a survey and a foresight exercise.