Meeting with CEFIC CEO delegation
Brussels, 13 January 2021
Steering brief
Scene setter
You will meet (virtually) with a CEO delegation from CEFIC, the European Chemical
Industry Council, on 13 January. The meeting wil be attended by members of CEFIC’s
executive committee and other chief executive officers (CEO’s – see all participants in the
CVs section). CEFIC represents medium and small sized chemical companies across
Europe, which provide 1.2 million jobs and account for about 17% of world chemicals
production. Virtually all large global and local chemical companies with production
facilities in Europe are CEFIC members (including companies headquartered abroad –
United States companies).
CEFIC will also meet Executive Vice-President Dombrovskis earlier on the same day to
discuss elements falling within his portfolio (carbon border adjustment, trade measures,
WTO aspects of the chemicals strategy for sustainability, relationship with China,
sustainable finance). They may also discuss the possibility of a future sectoral deal for
chemicals (implementation and innovation).
CEFIC previously met on 11 June and 5 November 2020 with Executive Vice-President
Timmermans to discuss the proposed carbon border adjustment mechanism. Another
meeting took place on 22 October with DG TRADE Deputy Director-General Denis
Redonnet. […]
Choreography
CEFIC has proposed that after the introductions by CEFIC President […], you will give an
introductory statement. Specific CEOs would then have the possibility to raise a
question (
see below) before a general
Q&A session.
1. CEFIC will ask your views on the
European green Deal and Competition Policy –
the need for a “rebooted” competition framework within which the industry can work on
the massive investments needed
for the implementation of and innovation for the
Chemical Strategy and Green Deal, including the climate neutrality target, innovation
and circular economy. They would like your direction as to what extent the Green Deal
will impact competition policy and vice versa how competition policy can help drive
innovation as industry will need to cooperate in many new ways to meet these goals in
this timeframe. This includes
State aid, antitrust rules and to a lesser extend
merger rules. They would like, in practice, a safe competition framework (sectoral
approach, alliances) within which the industry can work on the implementation of and
innovation for the
chemicals Strategy and climate neutrality target. CEFIC mentions
that EVP Timmermans was open to this idea during their November meeting.
2.
On the chemicals strategy, CEFIC asserts that the Strategy aims to establish a
completely new chemical industry in Europe, in which the use of hazardous chemicals
in minimised. Given that the EU is far ahead of the rest of the world in legislation, how
can we together ensure that European industry will lead the chemical industry
worldwide yet remain competitive on the global market? CEFIC believes that setting
global standards - even jointly with China - could be a pathway and would like to know
if you agree. Specifically, CEFIC has suggested broadening the chemical Strategy
(CSS) and decarbonisation strategies into a
Sectoral green deal for the chemical
industry, covering the full transformation that the sector and customers will need to go
through in the next decades. That means, next to further strengthening and simplifying
the legal frameworks a holistic and thorough impact assessment of all affected value
chains for the chemicals Strategy for sustainability. The challenge is that the Green
deal momentum may require companies / sectors to obtain a collective understanding
on strategic directions and gather relevant data which is not possible or very difficult
under current competition rules. The same question applies to data for CSS impact
assessments. How could this be facilitated? Will there be an
overall impact
assessment on the sector?
Steering brief
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Meeting with CEFIC CEO delegation
Brussels, 13 January 2021
3.
Round Table: The chemicals Strategy for sustainability presents opportunities but also
far-reaching challenges. This is recognised by the provision in the Strategy for a
High-
Level Round Table to advise the Commission. CEFIC
warmly welcomes this idea
and would aim to be an active participant at CEO level. The target start date is
February 2021. In view of the urgency and importance, can you advise
how this round
table will be set up by the targeted date and how CEFIC can help? Will EVP
Vestager take a role as well as the industry very much depends on a safe competition
environment?
4.
Cooperation on innovation: the Commission is encouraging the creation of
Alliances
prompting new ways to collectively develop and innovate. The chemicals Strategy
applies to many other sectors (e.g. customers are impacted). Key consumer goods and
automotive companies will be key for example. How best can chemical companies
work safely together with customers? Via innovation platforms with value chains?
CEFIC supports the European Hydrogen Alliance Industry roundtable and new
Hydrogen IPCEI, and Batteries, where they are a member of the European Battery
Alliance, engaged in projects and consortia to develop batteries, hydrogen pyrolysis, E-
crackers and several projects on chemical recycling). They are interested in your
expectations on their lead in Hydrogen, Batteries and Low Carbon Industry alliances
and would like you to share some views
how they can cooperate within the
framework of competition policy?
5.
Race towards renewables: CEFIC believes there will be a race towards renewables
and would like to know how to ensure that industry that is hard to decarbonise gets to
the renewable electricity and hydrogen it needs? Is the Commission developing ideas
on this? There are
regulatory hurdles where the Commission can help to kickstart
industrial electrification and greening chemistry (Energy and Environmental State Aid
Guidelines (EEAG) – see below, and ETS Indirect Compensation code for Hydrogen vs
non-compensation Basic Organic). If companies don’t use Hydrogen or electrify, they
can’t decarbonise – and when they use hydrogen or electrify, they need massive
amounts of renewable electricity. They would like to ask your advice on how to start a
structured dialogue with the services.
6.
EEAG. CEOs will ask your views on the review of the Energy and Environmental State
Aid Guidelines (EEAG), as today regulatory and renewable energy sources (RES)
surcharge systems or limited exemption schemes in Europe remain a direct
impediment to industrial electrification. They will raise the need to support
electrification of and the use of hydrogen in the industry in line with Green Deal
objectives and ask your views
how to modernise the Energy and Environment
State Aid Guidelines and their implementation (how to address reduction/removal
renewable surcharges in EU Member States (German and Belgian situation).
7.
Digital: they will ask how industry can be better seen as a starting point for digital
solutions. The chemical industry has significant purchase power to help steer
developments. They think there is big potential here to explore for the revised Industrial
Policy. They have a number of digital projects running – self driving trucks, logistic
pilots, predictive maintenance, use of big data for chemical trials/ testing. Two of the
largest supercomputers in private hands are in the chemicals sector, which is
likely one of the largest industrial purchasers of digital technologies in Europe. Can
they help policy by using this purchasing power? How will the Commission involve
industry in its digital strategy?
Steering brief
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