German 'chemistry summit' fails to address industry's most pressing issue

Frankfurt, Germany – German chemical industry representatives came away somewhat 'short-changed' from a recent ‘chemistry summit’ with federal government officials.

In particular, the meeting on 27 Sept produced little progress on industry demands for a lowering of energy prices, reported Markus Steilmann, president VCI, the German chemicals industry association.

Covestro CEO Steilmann had called on the federal government to urgently introduce a short-term energy package in October, in order to reduce the price of electricity for industry.

To achieve this, Steilmann argued for 'peak compensation' to be maintained, a reduced electricity tax and the introduction of a temporarily limited bridge electricity-price.

Progress was, however, made in the area of chemicals regulation, VCI saying it had received a “clear commitment” for the Berlin government to adopt risk-based approach as opposed to imposing blanket bans on substances. 

Another important discussion topic at the summit was the government’s commitment to chemical recycling, according to Steilmann.

The chemistry summit, he said, has started "an intensive dialogue with the federal and state governments with the aim of developing a concrete, short-term chemical pact.”

Also present at the chemistry summit were representatives from Germany's IGBCE trade union.

“It is positive that the federal government has committed itself to realistic positions on chemical regulatory issues [such as REACH and PFAS],” said IGBCE chairman Michael Vassiliadis.

However, continued Vassiliadis, the German chemicals manufacturing industry faces ‘acute challenges’ that require more immediate, concrete measures.

“Political assurances for a reduction in electricity costs are still too vague,”  said the IGBCE leader, adding that Germany “must quickly get back on par with other industrialised nations.”

However, according to a German government statement, it has committed to providing competitive energy and raw materials supply to the chemicals industry during the summit.

To achieve that, the Scholz administration said it is in talks with the parliament about proposals on how to stabilise electricity prices and improve security of supply.

The federal government said it also aims to accelerate the expansion of hydrogen network and enhance the efficiency of the electricity market.

Other commitments, it said, included those around reducing bureaucracy, supporting innovation and securing a skilled workforce for the chemicals industry.