# European industrial competitiveness and energy challenges > Live situation record from CLSTR: https://clstr.news/situations/european-industrial-competitiveness-and-energy-challenges > Updated: 2026-09-20T18:12:44.000Z. Sources: 5. Developments: 2. European industry is facing mounting challenges regarding competitiveness, driven largely by high energy costs and regulatory burdens. Industry leaders have called for reforms to maintain strategic production capabilities, specifically advocating for stable raw material supplies and cheaper energy. Key regulatory concerns include the revision of the EU Emissions Trading System (EU ETS) and the efficiency of the Carbon Border Adjustment Mechanism (CBAM). To prevent the loss of industrial installations and jobs, experts have emphasized the need for maintaining free CO2 emission allowances and preferential treatment for process emissions. The energy cost gap between the EU and global competitors, such as China, is projected to widen significantly. In response, manufacturers are increasingly focusing on total process costs and energy efficiency in auxiliary systems, such as compressed air and curing processes, to mitigate the impact of high energy prices and taxes. ## Timeline ### 2026-09-20: European industry faces rising energy costs and competitiveness challenges European industry faces rising energy costs and a growing gap with China, driving a shift toward total process efficiency in manufacturing, powder coating, and compressed air systems. 3 sources. https://clstr.news/cluster/european-industry-faces-rising-energy-costs-and-competitiveness-challenges ### 2026-09-09: Chemical industry leaders push for competitiveness and regulatory reform in Europe Chemical industry leaders are calling for regulatory reforms, including EU ETS and CBAM adjustments, to protect European competitiveness and manufacturing capabilities against rising energy and raw material-led 2 sources. https://clstr.news/cluster/chemical-industry-leaders-push-for-competitiveness-and-regulatory-reform-in-europe --- Cite as: European industrial competitiveness and energy challenges. CLSTR, https://clstr.news/situations/european-industrial-competitiveness-and-energy-challenges