As the war in the Middle East pushed up energy costs in Europe, politicians in Brussels have sprung into action on moves to improve chemical industry competitiveness.

• Iran war pushed EU to accelerate moves on cutting energy costs
• Now up to member states to implement cost cutting measures
• Positive moves on Emissions Trading System (ETS)
• Fast-tracking for anti-dumping duties (ADDs) is welcome
• Brussels has finally moved from words to action
• Update to Reach regulation has been halted
• New ETS structure to be revealed on July 15. Force majeure option would be welcome
• War effect will last throughout 2026 and likely into 2027
• Companies in Europe are delaying maintenance as demand has risen
• Customers and producers are rethinking 100% globalised business models, seek to make supply chains more robust
• Northern China can access Russian crude, South more reliant on Middle East
• Expect slump in consumer spending, rising rates of savings in Europe, demand destruction later in the year
• Permanent plant closures, M&A is creating a strong European industry
• AEQUITA, Borouge International, Moeve-Galp merger will create Europe-based powerhouses

In this ICIS Think Tank podcast, Will Beacham interviews Cefic director general Marco Mensink and Paul Hodges, chairman of New Normal Consulting.