Legal Alert: European Chemicals Industry Action Plan – simplification package for the chemical industry

On the 8^th of July 2025. The European Commission has published the long-awaited European Chemicals Industry Action Plan, one of the key elements of the European Union's strategy for sustainable development and innovation in the chemical sector. The Plan aims to strengthen the competitiveness and modernize the European chemical sector, with a particular focus on supporting energy transition and decarbonization, creating a market for green products and innovation, and simplifying the regulatory framework, while maintaining a high level of safety of chemicals and their mixtures for consumers in the EU market.

One of the goals of the Plan is to create an alliance with member states and stakeholders aimed at countering the risk of capacity closures in the chemical sector (Critical Chemicals Alliance). The Alliance's main tasks will include, in particular: (i) identifying and supporting critical production facilities to spur innovation and regional growth; (ii) promoting trade protection and fair competition; (iii) agreeing on investment priorities; and (iv) coordinating EU and national projects - including the so-called Important Projects of Common European Interest (IPCEI). Monitoring of chemical imports is to be carried out through the Commission's recently established Import Surveillance Task Force.

As outlined in the Plan, the Commission will immediately implement the Affordable Energy Action Plan to reduce the high cost of energy and raw materials through tax credits and network tariff reductions. It is also planned to update guidelines for compensation of indirect costs in the EU ETS for the industry, as well as to speed up permitting procedures and conduct an assessment of the regulatory framework for hydrogen, as one of the key elements in the transformation of the chemical industry.

The Plan also provides encouragement for clean carbon sources, such as carbon capture, biomass and waste, along with support for renewables and increased demand for clean chemicals through incentives and tax measures. To this end, it is planned to launch EU Innovation and Substitution Hubs and increase funding under Horizon Europe (2025-2027).

As part of the Plan, the Commission also adopted a sixth simplification package (Omnibus VI) to clarify and reduce the administrative and financial burden on the chemical industry, including:

I. Changes to the labeling of chemical substances (CLP)

The simplification package includes a number of amendments to Regulation (EC) No. 1272/2008 of the European Parliament and of the Council of 16 December 2008 on classification, labeling and packaging of substances and mixtures, amending and repealing Directives 67/548/EEC and 1999/45/EC, and amending Regulation (EC) No. 1907/2006 (Text with EEA relevance) (the “CLP Regulation”). Among the key aspects identified are:

a)    simplification and increased flexibility in the formatting of hazardous chemical labeling (including minimum font sizes, colors, and interlineation);

b)    mandatory inclusion of the supplier's online contact information on the label (so-called “digital contact”);

c)     simplification and clarification of the provisions governing exemptions from labeling requirements for smaller packages (less than 10 ml) without the need to demonstrate that the package is of such shape or form or so small that it is impossible to meet the full labeling requirements;

d)    limiting the scope of the CLP Regulation's provisions on advertising and distance selling of chemicals and their mixtures - according to the new wording of Article 48 of CLP, the phrase “Always read the label and product information before use” should appear on the product;

e)    easing obligations (reducing the scope of required information) for advertising of chemical substances and their mixtures;

f)      abolishing the 6-month deadline for updating the product label in the event of a change regarding the classification or labeling of a substance or mixture - by maintaining the obligation to do so “without undue delay”.

In addition, Omnibus VI also provides for deferral of start dates and transitional provisions for the requirements for mandatory formatting and updating of labels, as well as advertising and distance selling of hazardous chemicals indicated in EP and Council Regulation (EU) 2024/2865 of 23 October 2024, amending the CLP Regulation.

II. Changes concerning cosmetic products

Omnibus VI also involves simplifying the provisions of Regulation (EC) No. 1223/2009 of the European Parliament and of the Council of 30 November 2009 concerning cosmetic products (recast) (Text with EEA relevance) (“Regulation 1223/2009”), by:

a)    establishment of a procedure for the permissibility of certain colorants, preservatives and UV filters (adding them to the relevant Annexes IV, V and VI of the Regulation 1223/2009), which will facilitate the process and speed up the use of new cosmetic ingredients - according to the proposed procedure, such an application will be able to be submitted to the Commission, which should consult the SCCS before issuing a decision. The opinion should be issued within 12 months, although the deadline may be extended by the Commission in justified cases;

b)    amendments and simplifications in the application of the derogation criteria for carcinogenic, mutagenic or toxic for reproduction (CMR) substances of categories 1A and 1B by:

• the possibility of obtaining a derogation, provided that an application is submitted to the Commission no later than 3 months after the date of entry into force of the amendments to Part 3 of Annex VI of the CLP Regulation;
• removal of the separate criterion of demonstrating compliance with food safety requirements in order to obtain a derogation;
• clarification of the criteria for considering a substance as a suitable alternative substance;

c)     unification of the nomenclature of ingredients of cosmetic products by reference to internationally recognized nomenclature;

d)    abolishing the obligation to notify the Commission twice for cosmetic products containing nanomaterials (i.e., both under Article 13 and prior notification under Article 16 of Regulation 1223/2009) in favor of a single notification under Article 13, and abolishing reporting obligations in this regard,

III. Amendments to fertilizer products

The proposed amendments will also cover the provisions of Regulation (EU) No. 2019/1009 of the European Parliament and of the Council of 5 June 2019, laying down rules for making EU fertilizer products available on the market, amending Regulations (EC) No. 1069/2009 and (EC) No. 1107/2009 and repealing Regulation (EC) No. 2003/2003 (Text with EEA relevance) (“Regulation 2019/1009”). Omnibus VI provides for, among other things:

a)    removing the extended REACH registration requirement for substances contained in fertilizer products on their own or in a mixture;

b)    allowing the Commission to define criteria and methodologies for the evaluation of microorganisms by manufacturers and notified bodies, enabling them to demonstrate and verify that microorganisms used in microbial plant biostimulants, (other than those listed in CMC 7), do not pose a risk to human, animal or plant health, safety or the environment, and provide agronomic efficiency (new Article 42(4));;

c)     abolition of the so-called “separation clause” (Article 43 of Regulation 2019/1009), which requires the Commission to adopt separate delegated acts for each category of constituent materials;

d)    further digitization of procedures for the marketing of fertilizer products (among other things, through the obligation to include on the label a channel for online communication (digital contact of the supplier); new rules for the preparation and availability of the CE declaration of conformity and the storage of documents relating to the conformity assessment process of fertilizer products in electronic form; new rules for the provision of information on the compliance of fertilizer products with EU requirements to the competent authorities in electronic form).

IV. Other legislative changes

Regardless of the legislative proposals already published, by the end of 2025 the Commission plans to publish a proposal for the revision of the REACH Regulation¹, aimed at further simplifying the regulations and speeding up procedures, taking into account competitiveness, safety, protection and sustainability.

The plan also reaffirms the Commission's commitment to minimize PFAS emissions through robust, science-based restrictions, while ensuring continued use in critical applications under strict conditions where no alternatives are available, which will be proposed after the European Chemicals Agency issues its opinion.

The adoption of the new Chemicals Industry Action Plan, including the Omnibus VI legislative simplification package, is intended to provide tangible benefits to businesses operating in the chemical, cosmetics and related sectors. First and foremost, the new regulations should translate into more accurate product labeling, which will translate into reduced regulatory risk, reduced compliance errors and reduced associated costs.

Thanks to simplified procedures and the reduction of unnecessary reporting obligations, companies and competent authorities will benefit from a significantly reduced administrative burden, without compromising the high level of safety of products - especially cosmetics - available on the EU market. The new regulations more precisely define product requirements and eliminate unnecessary formal barriers. This will allow companies to focus on innovation and developing their offerings while ensuring compliance with the latest requirements.

Implementation of the measures in question is expected to save the industry at least 363 million euros a year, which will translate into improved operational efficiency and increased competitiveness in the sector. 

KPMG Law offers comprehensive support to entities in the chemical industry, including compliance with regulatory requirements for chemicals and their mixtures. Our services include, in particular:

• Advice on compliance with regulations on the manufacture, import, export and use of chemicals (REACH, CLP);
• Support in meeting product safety requirements, including cosmetics, detergents and other products and chemicals.
• Support in environmental regulations, including chemical waste management, emissions, and sustainable development.