In an era of rapidly shifting global dynamics, Europe stands at a crossroads. To lead in sustainability and attract vital investments, the region must enhance its competitiveness, particularly in industries crucial for achieving the European Green Deal targets.
Sectors like chemicals and plastics are essential for maintaining leadership in Europe. At Eastman, we believe that sustainable innovation is key to competitiveness. However, the industry cannot achieve this goal alone; it requires a clear supportive policy framework and stakeholder collaboration across the value chain
Eastman is a global specialty materials company, producing a broad range of products found in everyday life. With a rich history of innovation and a strong presence in Europe, we are keen to continue investing in the region. However, the European landscape is becoming less attractive for investments. This has been confirmed by the recently published Draghi report “European Competitiveness and the Future of the European Union”, revealing that around 60% of EU companies view legislation as an obstacle to investing.
If the EU is serious about remaining competitive while leading in sustainability, it needs to support its industries by reducing dependency on raw material imports and focusing on the development of circularity within Europe. The goal of a circular economy is to reduce our material footprint and achieve regional circularity; both essential for our sustainable future.
If the EU is serious about remaining competitive while leading in sustainability, it needs to support its industries by reducing dependency on raw material imports and focusing on circularity within Europe
The plastics industry, in particular, should aim to be circular at a regional level. During the last legislative term, the Waste Shipment Regulation has been revised to ensure that we find solutions for our waste here rather than shipping the problem to third countries. To achieve the EU Circular Economy objectives, proximity is key. Recycling plastic articles close to where they are consumed or produced reduces transportation costs and environmental impacts and supports local economies, creating a more sustainable and resilient economy. However, the current policy framework for incentivizing the uptake of recycled plastics is not providing sufficient encouragement for investments in plastics recycling infrastructure in the EU. Consequently, our dependency on imported raw materials in this sector will only increase.
Transitioning to circularity comes with cost. EU-produced sustainable materials struggle to compete with cheap imported materials from third countries. The cost difference is substantial, due to low energy and labor costs, and at times less strict environmental legislation in third countries. Companies may be ready to invest in innovative technologies, but without legal certainty and fair competition with non-EU countries, these investments likely will not materialize.
Will legislation enable or hinder progress?
Competitiveness has always been vital for Europe, and the challenge now is to determine how to achieve it without missing further future opportunities. Over 1,200 companies and organizations, including Eastman, signed The Antwerp Declaration for a European Industrial Deal to support the Green Deal, aiming to maintain high-quality jobs in Europe, calling for clarity, predictability, and confidence in industrial policy. To secure a prosperous future for its industries and citizens, the EU must embrace this path to competitiveness. By fostering innovation, ensuring legal certainty, and promoting circularity, Europe can lead the way in sustainable practices.
The European Parliament plays a crucial role in developing these. Acceleration of these efforts is vital to safeguard the existence of our industry and to attract new investments in the EU.
The time to act is now.