Chemical industry study urges 5 steps for circular shift

Phil Black - PII Editor 31/07/2025

126 1 minute read

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The European Chemical Industry Council (Cefic), in partnership with the innovation consultancy UNITY, has just unveiled a joint study called “Accelerating the Circular Transformation: Insights, Challenges, and Pathways for the Chemical Industry and Beyond.”

This in-depth report offers vital insights gathered from expert interviews and real-world case studies, showcasing the current state of the European chemical sector as it moves towards a circular economy, along with suggestions to speed up the process.

Even with increasing momentum, there are still major hurdles to overcome. High operational costs, inadequate infrastructure, complicated regulatory environments, and a lack of market demand for circular products are all holding back progress. Addressing these systemic issues will require a united effort from both industry players and policymakers.

“The message is clear: while the industry is stepping up, scaling circularity will require decisive action across the entire policy, business, and societal ecosystem.” said Marco Mensink, Cefic Director General.

In response, the study lays out a Five-Point Action Plan designed to speed up transformation:

Create a supportive regulatory framework with targeted incentives.
Encourage investment in circular infrastructure and new technologies.
Integrate circular thinking across the economy and society as a whole.
Foster innovation through new collaboration models that involve multiple stakeholders.
Set up systems to monitor progress and address any existing gaps in implementation.

A survey conducted among Cefic members in support of the study reveals a strong consensus within the industry:

90% believe that the circular transition is significantly impacting their business operations.
72% see customer demand as a key driver for adopting circular business models.
82% affirm that circularity is a core part of their corporate strategies.
52% indicate that their organizations are already making significant strides in their circular economy initiatives.

These findings were shared on June 17 during the Cefic-UNITY EU Green Week partner event titled “Competitiveness & Circularity: A Win-Win for Europe’s Chemical Industry?”

The complete study will be available online at this link starting June 17 at 17:00 CEST.