Europe isn’t Losing its Chemical Industry; It is Abandoning It.

Europe isn’t losing its chemical industry; it is abandoning it. The region has the scale, the consumers, and the economic weight to compete. What it lacks is a clear vision and the will to act.

Other regions show what an active industrial strategy looks like.

Take Brazil. It is not a perfect model, but it is a clear reminder that governments still have levers, and some are willing to use them.

Brazil’s Petrochemical Playbook:

1) Tariffs and Anti-Dumping Measures: Slow import surges and stabilize margins.

2) Fiscal and Investment Support: REIQ/PRESIQ and public financing help offset structural cost disadvantages.

3) Cluster Strategy: Integrated hubs linking crackers, converters, and logistics to build resilient supply chains.

4) Modernization Incentives: Encourage efficiency upgrades instead of subsidizing obsolete assets.

None of this is subtle. It is a deliberate effort to buy time and prevent domestic capacity from being steamrolled by global oversupply. The outcomes are not spectacular, but they are better than Europe’s laissez-faire default.

Europe has tools on the table such as carbon border adjustments, energy-cost leveling, and cluster-competitiveness programs. The will to use them at scale is lacking.

Indecision is still a decision, and it carries a cost.