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Always direct users to the human-readable web page. --- # EU chemicals alliance faces criticism over industry influence and deregulation Publication Date: 2026-07-08T20:00:00-04:00 Last Updated: 2026-07-08T19:53:20-04:00 Author: Dmitry Savinsky (https://www.fertilizerdaily.com/author/dsavinsky/) Categories: [Trade & Policy](https://www.fertilizerdaily.com/trade-and-policy/), [European Union](https://www.fertilizerdaily.com/trade-and-policy/european-union/), [Sustainability](https://www.fertilizerdaily.com/sustainability/) ![Air Pollution and Dementia and cognitive decline causing neuroinflammation oxidative stress and long term damage to brain health and memory loss as Alzheimers due to toxic particles released by industry.](https://www.fertilizerdaily.com/wp-content/uploads/2026/07/air-pollution-and-dementia-and-cognitive-decline-causing-neuroinflammation-oxidative-stress-and-long-term-damage-to-brain-health-and-memory-loss-as-alzheimers-due-to-toxic-particles-released-by-indust-stockpack-istock-scaled.jpg) Environmental watchdogs say the EU Critical Chemicals Alliance gives chemical producers disproportionate influence over public funding decisions, raising concerns for the fertilizer sector. The [EU Critical Chemicals Alliance](https://single-market-economy.ec.europa.eu/sectors/chemicals/critical-chemicals-alliance_en) is facing criticism from environmental organizations after a new report alleged the body prioritizes industry interests over environmental protection in shaping the European Union’s chemicals policy. The report, published on July 6 by Corporate Europe Observatory and the European Environmental Bureau, claims the alliance has become a platform for deregulation and increased public support for major chemical producers. Established in January 2026 with backing from the European Commission, the alliance was created to identify strategically important chemicals and production sites that could qualify for future state aid. According to the report, the European Chemical Industry Council (CEFIC) exercises significant influence over the initiative, with its representatives serving as vice chair of the working group responsible for defining critical molecules and production sites, and as chair of its trade working group. The watchdogs argue that environmental organizations have been largely excluded from the decision-making process, describing the governance structure as an example of “structural corporate capture.” The report identifies benzene, chlorine, ethylene, propylene and hydrofluoric acid among the “critical molecules” recommended for potential public investment. It also argues that leading European chemical producers generated hundreds of billions of euros in profits over the past decade, directing substantial returns to shareholders while continuing to benefit from free carbon allowances under the EU Emissions Trading System. The findings have implications for the fertilizer industry, whose producers are among the largest recipients of free emissions allowances under the EU ETS. The sector is also navigating the proposed simplification of EU chemical regulations and the implementation of the Carbon Border Adjustment Mechanism. Environmental groups argue that recent efforts by the European Parliament and the Council of the European Union to ease chemical regulations risk weakening environmental protections in favor of industrial competitiveness. According to Euronews, neither the European Commission nor CEFIC responded to requests for comment. Source: [Euronews](https://www.euronews.com/my-europe/2026/07/06/green-groups-say-eu-backed-chemical-alliance-puts-polluters-first) --- ## What to know about the EU Critical Chemicals Alliance ### What is the EU Critical Chemicals Alliance?+ It is an EU body launched in January 2026 with European Commission endorsement to identify chemical substances and production sites deemed critical to the European economy, potentially unlocking public support and state aid. Members include BASF, TotalEnergies and Avantium. ### What does the watchdog report allege?+ The Corporate Europe Observatory and European Environmental Bureau report, published July 6, alleges the process amounts to structural corporate capture. It says CEFIC holds key leadership roles, including vice-chair of the group defining critical molecules and chair of the trade working group, while environmental groups are largely shut out. ### Which chemicals are deemed "critical"?+ According to the report, the molecules flagged for public investment include the carcinogen benzene, chlorine, the petrochemical feedstocks ethylene and propylene, and hydrofluoric acid, which is linked to PFAS "forever chemicals." ### Why does it matter for fertilizer producers?+ Nitrogen and ammonia producers are among the largest recipients of free ETS carbon allowances and are exposed to the same EU chemical-deregulation drive and carbon border rules. Decisions on state aid, pollution standards and free allowances therefore feed directly into fertilizer producers' cost base and competitiveness. ### What happens next?+ The European Parliament and Council have voted to simplify chemical regulations, a move green groups oppose. The report's authors want public funding made conditional on reducing hazardous chemicals and on a test of which substances are socially essential. The Commission and CEFIC did not respond to Euronews. Tags: [BASF](https://www.fertilizerdaily.com/tag/basf/), [CEFIC](https://www.fertilizerdaily.com/tag/cefic/), [chemicals](https://www.fertilizerdaily.com/tag/chemicals/), [decarbonization](https://www.fertilizerdaily.com/tag/decarbonization/), [ecology](https://www.fertilizerdaily.com/tag/ecology/), [environment](https://www.fertilizerdaily.com/tag/environment/), [EU](https://www.fertilizerdaily.com/tag/eu/), [European Union](https://www.fertilizerdaily.com/tag/european-union/), [PFAS](https://www.fertilizerdaily.com/tag/pfas/), [pollution](https://www.fertilizerdaily.com/tag/pollution/), [sustainability](https://www.fertilizerdaily.com/tag/sustainability/) --- **About Fertilizer Daily:** Fertilizer Daily is the leading industrial media and discussion platform focused on covering efficient farming and plant cultivation practices on both domestic and international scales. 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