Delivering the HLG results in the regions: Follow-up Conference to the High Level Group on the competitiveness of the European chemical industry on 16^th/17^th April 2009 in Ústí nad Labem/ Czech Republic

On 16^th/ 17^th April 2009 the ECRN co-organises under the patronage of the Czech EU Presidency and the European Commission in cooperation with its member region Ústí a Follow-up Conference of the HLG on Chemistry in Ústí nad Labem/ Czech Republic.

Further information can be found from end of January 2009 onwards on the following website: www.HLGconference09.cz

5^th and final meeting of the High Level Group on the Competitiveness of the Chemical Industry in Europe on February 19^th 2009

On February 19^th the fifth and final meeting of the High Level Group on the Competitiveness of the Chemical Industry in Europe took place in Brussels. The ECRN President and Minister for Business and Employment of Saxony-Anhalt, Dr. Rainer Haseloff, took part – as in all previous meetings of the HLG - on behalf of the European chemical regions.

The meeting was opened by a general statement of the Vice President of the European Commission, Guenther Verheugen. He stated that the High Level Group had reached an overall consensus on a joint report which gives a comprehensive overview of the chemical industry in Europe. With reference to the ongoing economic crisis, he stated that it is unclear when the current economic crisis will have reached the bottom. He feared that the real social consequences will only emerge in the coming months. He also advocated a stand-still agreement for any new European legislation which might affect the competitiveness of the industry in Europe during this period. He thanked all members of the High Level Group who made it possible to achieve an overall agreement on the text.

In a general debate followed by the statement of Vice President Verheugen, all members of the HLG endorsed the report and its conclusions. Minister Haseloff underlined in his intervention the constructive role of the chemical regions in the work of the High Level group and the many references to the regional level in the text of the conclusions and the final report of the HLG. He also stated that it is imperative to ensure the implementation of as many recommendations as possible made by the High Level Group in the years to come. This is particularly important for the implementation of the agreement found in the European Council at the end of last year on the specific treatment of the energy intensive industry in Europe. Many members of the HLG – mainly from the industry side – underlined the need for a quick solution for the energy intensive industry on the basis of the Council agreement.

The NGO representatives in the HLG stated that they would have liked to have been more active in the work of the HLG. The President of the European Environmental Bureau underlined the need for a strong commitment of the EU to reaching the climate change target and he urged the industry to play an active role.

Vice President Verheugen suggested at the end of the meeting to carry out a follow up activity of the High Level Group, perhaps already in 2010, to take stock of the progress made in implementing the HLG recommendations. He also underlined the importance of the follow-up event of the ECRN and the Ústí region, which will take place on February 16-17^th in Ústí nad Labem under the Czech Presidency.

Referring to the recent criticisms raised by Friends of the Earth Europe regarding the High Level Groups, Vice President Verheugen underlined that the sectoral High Level Groups are an instrument of industrial policy of the European Union. In this sense they cannot and they are not intending to provide the platform for an overall participation of all groups in society. Rather they are a tool for dialogue with the stakeholders to discuss the key challenges on the competitiveness of the specific sectors.

The meeting was closed with an invitation by Vice President Verheugen to participate in a public event and to come to the first follow-up conference of the High Level Dialogue in Ústí nad Labem.

4^th High Level Group Meeting on 27^th October 2008 on Trade and Competitiveness with other Regions

On October 27^th the 4^th meeting of the High Level Group on the Competitiveness of the Chemical Industry in Europe took place.

The meeting started with a welcome and introduction by Commissioner Günter Verheugen, who referred to the new challenges for the chemical industry created by the financial crisis in recent weeks and to the need for a legal certainty for the industry but also the need for a timely decision on the Energy and climate policy package. In the following discussion with the other HLG members, ECRN President Dr. Reiner Haseloff underlined the need for legal certainty for the energy intensive sector on how it will be treated under the new EU climate policy. He referred to the declaration adopted on the very same day by the ECRN presidium.

Continuing on the agenda, the HLG then endorsed the document on Energy, Feedstock, Infrastructure and Logistics. Commissioner Verheugen highlighted in his speech the constructive role of the ECRN particularly regarding chemical logistics.

The main subject of this HLG meeting was the discussion on the report on Trade and Competitiveness with other Regions which was prepared by an ad hoc group over the last months. Starting the discussion Commissioner Verheugen raised the question to what extent the competitiveness of the European chemical industry has decreased over the recent years. In the then following debate industry representatives highlighted the competitive advantage of Europe regarding dense clustering and high integration particularly of SMEs in comparison to other regions in the world. They also highlighted, however, that this position is endangered by the current economic downturn and the over-regulation in Europe. The second round of discussion dealt with the outlook of the future trade negotiations in the world and their impact on the chemical industry. The representative from DG Trade explained that the Commission is exploring possibilities for sectoral agreements and the abolishing of non-tariff measures, but that all negotiations are linked to the overall development of the Doha Round. The industry representatives underlined their commitment for a multilateral trade agreement and their concern of a global rise of protectionism, also including double pricing and the access to raw materials. The final round of discussion dealt with the access to raw materials of the chemical industry. The industry representatives pleaded for a change of the regulatory environment for sugar. Commissioner Verheugen announced that the Commission is taking steps towards an EU raw materials strategy.

Before closing the meeting, Commissioner Verheugen informed about the future progress of the HLG work and the plan to produce the final report of the High Level Group for the last meeting on 19th February 2009. A smaller editing group (in which the ECRN is present) will now work on the draft version of the text.

Commissioner Verheugen also confirmed his participation to the HLG follow-up conference in Ústí nad Labem in April 2009, which is jointly organized by the ECRN and the Ústí region as part of the Czech Presidency of the EU.

Third meeting of the High Level Group: Energy, Feedstock and Logistics
Brussels, 18/04/08

April 18th was the date when the High Level Group (HLG) met for the third time. The meeting was chaired by the Vice President of the European Commission, Günter Verheugen.

Based on the draft final conclusions of the HLG Sub Group on Energy, Feedstock and Logistics and the discussion paper presented at the Sherpa Meeting on second of April the discussion in the High Level Group on this matter was conducted in four parts around the following questions:

• Further strengthening of chemical clusters and related infrastructure
• Diversification of raw materials
• How best to ensure effective and efficient global approach to climate change and
• Addressing climate change as a major business opportunity.

Regarding the issue of “Regional Aspects” the ECRN was asked by the chair to provide an input for the Sherpa Meeting on 18th of September. The ECRN wishes to use this opportunity.

The ECRN played a very active and constructive role in the discussion by developing the strategy on chemical logistics on Central- and Eastern Europe and raising the point of planning security for the chemical industry regarding the special treatment of energy intensive industries.

Second meeting of the High Level Group on the Competitiveness of the chemical industry in the European Union on the 18^th of Dec 2007

Mandate for the Ad Hoc Group Feedstock, Energy and Logistics

On December 18^th the High Level Group (HLG) met for the second time. Vice President Verheugen highlighted that on January 27^th 2008 the European Commission will present its proposals on implementing the Energy package. During the internal Commission discussion on the energy package it was possible for him to find support in the Commission for a special treatment of energy intensive industries.

In a short debate with High Level Group members the ECRN President Dr. Haseloff (see photo on the right) highlighted the potential impact of the energy package on energy intensive industries and particularly on the production of base chemicals in Europe. Dr Haseloff announced that the chemical regions are very interested in taking part in this debate. Furthermore he suggested putting special attention on the question of chemical logistics in Europe and especially towards the new Member States. The HLG member from Poland and the Czech Republic (see Deputy Minister Milan Hovorka (middle) and Petr Dolejsi (left) from the Czech Permanent Representation) underlined the specific problems of the chemical industry in these countries to cope with the ambitious energy targets of the EU and welcomed the initiative of the ECRN to deal with this matter. Finally the Mandate for the Ad hoc Group was agreed by the HLG.

The HLG also agreed the proposed work plan for the HLG 2008 which means that the 4th meeting of the HLG in October 2008 will mainly focus on the external aspects of the chemical industry. Furthermore a special Ad hoc Group on intellectual property rights will also be set up in the HLG process.

Discussion about the Ad Hoc Group Report on Innovation, Research and Human Resources

Chaired by the Commissioner responsible for research, Janzec Potocnic (left), the main part of the meeting focussed on the draft final report of the Ad hoc group and the draft recommendations. The Commissioner asked for specific recommendations to be made on the report and invited the HLG members for comments. Even though most HLG members welcomed the report it became clear that many general comments were made to include additional items such as consumer affairs, environmental questions and matters on research or training.

At the same time there was broad consensus to widen the scope of the European Technology Platform SusChem towards innovation and to implement some of the recommendation regarding the 7^th Framework Programme as soon as possible. The new Flemish minister for Business, Patricia Ceysens, (right) focussed in her statement on the key role of the exchange of good practices in the promotion of innovation. She made specific reference to cross-border co-operation projects in the field of education between Flanders and the Dutch provinces. ECRN President Haseloff highlighted the role of regions to foster the dialogue between stakeholders in order to provide trust for new innovation. Furthermore he announced that the ECRN is willing to add a regional dimension to the European Technology Platform approach.

High Level Group on the Competitiveness of the chemical industry in the European Union

The European Commission launched the work of the High Level Group (HLG) on the Competitiveness of the Chemicals Industry on 10th September 2007. The group consists of senior policy-makers from the public and private sectors together with representatives of civil society. It will examine the factors that determine the competitiveness of the European chemicals industry and will conduct an economic and statistical analysis of the structural changes taking place in the chemicals industry, dealing with questions linked to the sustainable development of the industry.

The group is expected to formulate a set of sector-specific policy recommendations by spring 2009.

European Commission Vice President, Günter Verheugen, responsible for enterprise and industry policy and chair of the HLG, stated that the EU chemicals industry is a world leader today and makes an enormous contribution to growth and jobs in Europe. However, there are clear signs that it is facing unprecedented challenges both from the effects of global change and the expectations of our citizens. With this initiative the EU aims to ensure the right framework conditions for the chemicals industry to continue operating and investing in the EU on a sustainable basis.

The initiative forms part of the EU´s partnership for growth and jobs. The establishment of this Group was first announced in the Communication on Industrial Policy of October 2005 as one of the sector-specific industrial policy initiatives.

In addition to the participation of further Commissioners whose competences cover key issues to be examined by the Group, it also comprises high-level Member State representatives, various regions, the EU chemicals industry and its downstream industries, academia, trade unions, environmental Non Governmental Organisations (NGO´s), and consumer organisations. The European Parliament has also been invited to nominate members of the group. In order to address specific questions and promote reflection, the HLG will seek expertise or contributions from ad-hoc groups of experts.

In recent years the activities of the European Chemical Regions Network have been enhanced by the Commission´s participation in these consultations. It is the first time that a network of regions has taken part in such a high level dialogue. ECRN President Dr. Reiner Haseloff, supported by his Sherpa Thomas Wobben, will represent the ECRN within the HLG. Other Regions will join the thematic Ad-hoc Groups to bring the ECRN´s input into the discussions. The following Groups will be founded under the HLG: innovation and human resources, trade, energy and raw materials, logistics and regional aspects, economy and social requirements.

ECRN President Haseloff outlined in his statement the role of the ECRN and the chemical regions in finding solutions on the ground to key questions regarding competitiveness. He referred to the ECRN as a network which represents nearly 1 million employees in the chemical sector in Europe. He thanked the Commission for inviting the ECRN as the first regional network to take part in such a high level dialogue and he promised that the ECRN will play a pro-active role in the future work of the HLG. In this sense he stated that it will be important to find adequate solutions for energy intensive industries in the future design of EU climate and energy policy. Furthermore he suggested using the HLG for a concerted effort to further develop the integration of chemical sites in central and Eastern Europe. He also announced that the ECRN is currently working with CEFIC on a joint initiative to bring the European technology platform approach closer to the regions. Finally he invited the European Commission to use chemical regions as test beds for better regulation in the future.

Minister Moerman from Flanders, ECRN Member Region, who represents Belgium in the HLG, gave a short summary in her contribution of the experience of dialogue between the Flemish Government and the chemical industry in Flanders, which took place last year.

The chemicals industry plays a key role for the EU. It is a major industry in its own right and at the same time an enabling industry that provides the necessary materials for all the other industrial sectors. With a turnover of € 436 billion (2005) the EU accounts for about 30 % of world chemicals sales. There are approximately 31,000 chemical and pharmaceutical companies in the EU and they employ a total staff of about 1.9 million, or 6% of the overall workforce in the manufacturing industry. SME´s in the EU´s chemical industry account for 30% of sales and 37% of employment.

The EU chemicals industry (excluding pharmaceuticals) is the second leading manufacturing sector in terms of value added per employee. In 2005, the EU chemical industry exported € 110 and imported € 72 resulting in a trade surplus of € 38 billion. With this the chemicals industry accounted for 26% of the total EU manufacturing trade surplus.