
UK and U.S. economic prosperity deal takes effect – Key takeaways
On 8 July 2025, the European Commission presented its European Chemicals Industry Action Plan. The Action Plan aims to strengthen the competitiveness and resilience of the European chemical sector while driving the transition to a clean circular economy. One of the key components of the Action Plan concerns the timely implementation of the proposal for a universal restriction on the manufacture, placing on the market and use of per- and polyfluoroalkyl substances (PFAS).
The European Chemicals Industry Action Plan1 builds on the Competitiveness Compass2, the Clean Industrial Deal3, and the Strategic Dialogue with the Chemical Industry held in May 20254. It sets out concrete measures across four strategic pillars to secure the global competitiveness of the European chemicals industry and maintain a strong European production base:
The Action Plan is accompanied by an Omnibus Legislative Proposal5 to streamline existing chemical regulations (e.g. labelling requirements), and a proposal for a self-standing regulation on the European Chemicals Agency6 (“ECHA”) to enhance its governance and strengthen its role in legislative processes, among other things.
Of particular interest to many stakeholders is Section 5.4 of the Action Plan, which reflects the Commission’s position and perspectives on the Universal PFAS Restriction Proposal.
The proposal was submitted to ECHA in January 2023 by the national authorities of Germany, Denmark, the Netherlands, Norway and Sweden. It aims for a universal ban on all PFAS except in certain essential use cases. Following a public consultation, ECHA’s scientific committees, namely the Risk Assessment Committee (“RAC”) and the Committee for Socio-Economic Analysis (“SEAC”), are currently evaluating the proposal and the comments from the consultation. ECHA has received approximately 5,600 comments during the consultation phase.
In its Action Plan, the Commission now reaffirmed its commitment to strict PFAS regulation, while also providing guidance on potential derogations and complementary support measures for affected companies:
With the Action Plan, the Commission sends a clear signal: Major changes to European PFAS regulation are just around the corner. While certain consumer-facing applications may face blanket bans, industries with strategic relevance may be subject to derogations. To benefit from the exemptions, companies will need to demonstrate both necessity and responsibility – including clear roadmaps for substitution and mitigation. Companies affected by the proposed restriction should start preparing now: by assessing use cases, closely monitoring legislative developments and documenting compliance efforts in anticipation of the regulatory shift.
Authored by Dr. Sebastian Gräler and Dr. Jan Singer.
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