EU launches decarbonization platform as cosmetics grapple with Russian gas exit
The European Commission (EC) has launched the EU Energy and Raw Materials Platform, a centralized digital mechanism designed to support European companies in sourcing energy products and raw materials. The launch comes at a critical juncture as the EU continues to phase out Russian gas, which is expected to increase costs across the cosmetic manufacturing supply chain.
The energy platform aims to help industries decarbonize operations, reduce exposure to fossil fuel volatility, and access financing to support energy transition goals.
The move seeks to strengthen Europe’s industrial competitiveness and energy resilience, which could directly impact the cosmetics and personal care sector, especially ingredient suppliers.
Many processes that produce core ingredients, such as surfactants, emulsifiers, pigments, and hydrogenated oils, require large amounts of energy.
The platform helps companies connect with cleaner energy options, such as renewable hydrogen and biomethane, offering ingredient manufacturers a novel way to cut emissions and reduce energy-related costs over time.
Hoping for hydrogen
The first mechanism to go live is focused on hydrogen. The Hydrogen Mechanism opens for registrations on July 2 next month and aims to connect buyers and sellers of renewable and low-carbon hydrogen across the EU. The first round of supply-demand matchmaking is planned for September.
The goal is to help build a functioning hydrogen market by making it easier for companies to find suppliers, access infrastructure, and explore financial support options that could make switching to clean energy more affordable.
The chemicals industry accounts for 25% of industrial gas use.The platform could become a valuable tool for personal care companies looking to lower their Scope 1 and 2 emissions and align with stricter EU sustainability targets, especially if energy-intensive suppliers in the value chain begin to participate.
While the initiative remains in its early stages, it reflects a broader shift toward more secure, low-emission energy systems in Europe, something all cosmetic brands will increasingly need to navigate amid the ongoing structural shifts in Europe’s energy supply landscape.
Cutting Kremlin pipelines
With the EU planning to fully phase out Russian gas imports by the end of 2027, ingredient manufacturers in the personal care sector are bracing for heightened energy costs and supply chain uncertainty.
Kimberley-Clark recently made solar power purchasing agreements in Italy and Spain, aiming to virtually supply over 40% of its Western and Central European production sites with renewable electricity.
The energy shift, outlined under the REPowerEU initiative, aims to reduce the bloc’s reliance on Russian fossil fuels and accelerate the transition toward clean, secure, and locally sourced energy.
Between 2021 and 2023, the EU successfully cut Russian gas imports from 45% to around 15% of total demand, according to the EC.
However, the resulting supply gap is being filled primarily by liquefied natural gas (LNG) from markets such as the US and Qatar — often at significantly higher prices. Reuters reports that European gas prices have reached up to €70 (US$81) per megawatt-hour during peak winter periods, nearly four times pre-crisis levels.
Cosmetics ingredient manufacturer Evonik previously replaced up to 40% of its gas use with liquified petroleum gas and coal at German sites to safeguard its production in anticipation of potential Russian supply disruptions.
The chemical sector is foundational to much of the personal care industry’s raw material production and has been identified as one of the hardest hit by rising utility bills..jpg)
The EU successfully cut Russian gas imports from 45% to around 15% of total demand.
Belgium-based think tank Bruegel found that the chemicals industry accounts for 25% of industrial gas use and nearly 18% of electricity consumption across the EU, making it acutely vulnerable to energy price volatility.
In the Netherlands, the Dutch central bank projects that the combination of rising gas, grid, and carbon costs could reduce chemical sector output by up to 8%.
To manage the transition, the EC pledges a gradual and coordinated rollout, encouraging member states to develop national diversification plans that balance the energy transition with industrial stability.
The EU Energy and Raw Materials Platform, including its Hydrogen Mechanism, steps in to support industries through improved access and financing tools — a push to potentially strengthen long-term resilience amid shifting geopolitical and regulatory landscapes.
