Europe’s chemical industry is getting a fresh start

Europe’s chemical industry is getting a fresh start

Today, leading chemistry entrepreneurs from across Europe announced the founding of a new Industrial Green Chemistry Association (IGC) dedicated to represent the interests of chemistry startups and innovation-driven SMEs, a group long excluded from the traditional industrial dialogue in Brussels and Berlin. The new association emerges in response to a growing need of early-stage innovators in the chemical and pharmaceutical manufacturing sector, which are not represented sufficiently by old industrial associations. The IGC represents a place for chemistry startups and other small, innovation-driven companies, voices that too often have been left out of the big discussions in Brussels and Berlin.

Why does this matter?

The EU is confronted with the biggest industrial challenges since their foundation: industrial sovereignty, climate neutrality, and digitalization are topics to which only innovation providers can bring about a change. At the same time, the reality on the ground is not considering sufficiently their unique needs for finance, market access, or regulatory support. Historically, only the voices of large, legacy players have been considered when policies have been made in the past. While we acknowledge that the transformation of the existing is important, we are convinced that at the same time we must enable the creation of a modern, green, and forward-looking chemical industry from the bottom up. Otherwise, we risk losing more of our industrial base until there remains nothing left to lose.

Here’s the backstory

On May 14, 2025, the European Commission held its first-ever “Strategic Dialogue with the Chemical Industry.” Around the table were the usual big names, such as BASF, Solvay or Cefic, but there were no startups invited. That was surprising, because we know from other industries that startups usually succeed much better in bringing innovations into the market. They already make a real impact in pharma, medtech, and cleantech. We were wondering: Why not also in chemistry?

Startups are changing the game

Again and again, we have seen small teams transform drug discovery, diagnostics, and digital health and disrupt whole industries. The pipeline is full of examples in green chemistry as well. Smarter processes, cleaner reaction pathways, and new raw materials are coming from fast-moving innovators. If Europe really wants to reinvent its chemical industry, these teams can’t simply be in the driver’s seat – they also need the fuel and the right infrastructure to drive.

The funding gap

While the chemical industry is 3-4 times larger than the whole pharmaceutical industry, it receives significantly less funding. The German Chemical Association VCI published a report which shows: Between 2019 and 2021, only about 0.2% of venture capital in Europe went to chemistry startups. The result? Close to nothing. No big campaign was initiated; none of the existing associations started to invest heavily to bring about a change.

Another missing puzzle piece

The EU’s major industrial program, STEP (Strategic Technologies for Europe Platform), was published in 2024. While supporting biotech, digital, and clean energy, it lacks chemical process innovation. That is a big oversight. A 2024 McKinsey report even said process change is the chemical industry’s biggest challenge. Yet, green chemistry still isn’t getting the backing it needs. It should be a top priority, not passed over or simply given word-service.

IGC’s First Success

We can bring about a change, if we work closely together. ICG members started an exchange with the EU Commissioner Stephane Séjourné and his staff in June 2025 and afterwards gave input for the European Commission’s new Chemical Action Plan. Less than a month afterwards, the European Commission released their final plan, in which they recognize the “essential role of green and sustainable chemistry” which they “will further integrate process innovation into the implementation of SSbD [Safe and Sustainable by Design] and transition pathways”. Also, “particular attention will be given to SME’s and startups, especially in the implementation of the EU Chemicals Industry Transition Pathway”. We are incredibly grateful that green and sustainable chemistry has been acknowledged as a major innovation driver – and that the EU recognizes the work of so many startups and SME’s forming the backbone of our economy. That is great news. It shows that under the right leadership, even the largest of apparatus such as the EU can open themselves to smaller, faster-moving innovators.

There is still much to be done.
What IGC intends to do

• Making sure startups, scientific spin-off projects, and innovative SMEs have a real seat at the policy table, for example at the Critical Chemical Alliance

• Pushing to include green chemistry and process innovation in programs such as STEP, the Critical Medicine Act, or the Critical Raw Materials Act

• Fighting for a “Clean Industrial Deal for Startups” including access to pilot plants and startup-friendly funding

• Changing funding rules so that fast-growing, risk-taking startups are not penalized

• Bringing the products to market that customers want

Meet Dr. Aliz Kiss, our Chairwoman

Dr. Aliz Kiss is the founding chairwoman of IGC. She previously led a green chemistry startup with real breakthrough potential. Ten years ago, she achieved what would be impossible today: She secured access to all data from all major scientific publishers, including US based ones, for commercial exploitation. However, there were no EU based investors who understood the potential to build an EU tech giant in the chemical space. She refused to move to the US, she wanted to build it here. Finally, she had to shut it down. She experienced first-hand what most chemistry startups did: the funding system and access to capital in Europe were not built for this kind of innovation. As she says: “I lost my company — not because the science failed, but because Europe lacks risk‑tolerant funding for first‑of‑a‑kind chemical solutions. Even a ‘chemical perpetual motion machine’ wouldn´t get funding. Either, because it wouldn’t involve living organisms (no biotech) or because the investors lack basic understandings. We need a real change here!” ICG will be built by the people already working on the solutions, the ones who need support now, not later.

How we are doing it

The majority of our members who are not older than 3 years have veto power. Everyone can initiate new initiatives - but only in our Association, the changemakers and the troublemakers of tomorrow have power. In our constitutions we incorporated that the IGC must orientate themselves on the needs of the future generations. At IGC, not the establishment rules the world. We are creating a real platform, by and for innovators. The purpose: To bring about a change – always and forever. We are not waiting for the future – we are entrepreneurs, we are building it!

About The IGC - Association of Industrial Green Chemistry

The IGC was founded in June of 2025. Founding members are green chemical entrepreneurs and other change-makers. IGC amplifies the voice of the new Green Chemistry industry, championing innovations that contribute to a sustainable future while fostering effective dialogue among stakeholders in politics, business, and science.

Please visit our website www.igc-advocacy.org for more information. Press contact: Dr. Aliz Kiss, aliz@igc-advocacy.org, Tel. +49 176 3875 7938