This Week in Manufacturing — Brussels (#17, 2026)
Definitive anti-dumping duties on Chinese adipic acid; Council acts on pallet packaging rules; CO2 credits for trucks updated; Hydrogen funding awarded; Council addresses trade disruptions.
May 03, 2026 to May 09, 2026
Definitive anti-dumping duties on Chinese adipic acid; Council acts on pallet packaging rules; CO2 credits for trucks updated; Hydrogen funding awarded; Council addresses trade disruptions.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
European Commission
Commission imposes definitive anti-dumping duties on Chinese adipic acid
The European Commission imposed definitive anti-dumping duties on imports of adipic acid originating in the People’s Republic of China through Implementing Regulation (EU) 2026/913, published on 5 May 2026. The investigation, launched on 14 March 2025 following a complaint by Lanxess Deutschland GmbH and Radici Chimica S.p.A, found dumping margins up to 42.3%. The duties, effective immediately, are set at 29.1% for Chongqing Huafon, 42.3% for Tangshan Zhonghao, 31.5% for other cooperating companies, and 42.3% for all other imports. The Commission assessed that the Union industry remains able to meet demand despite a decline in domestic capacity, and rejected calls for an end-use exemption and quota system for downstream users. Provisional duties previously imposed are definitively collected up to the new rates.
Commission awards over €1 billion to hydrogen projects under the European Hydrogen Bank
On 6 May 2026, the European Commission selected nine hydrogen production projects across seven EEA countries in the third auction of the European Hydrogen Bank, allocating €1.09 billion from the Innovation Fund, financed by the EU Emissions Trading System. The projects, covering almost 1.1 GW of electrolyser capacity and over 1.3 million tonnes of hydrogen over the first decade, target decarbonisation in sectors such as transport and chemicals. Spain and Germany will provide an additional €1.7 billion in national support via the Auctions-as-a-Service feature. Grant agreements are expected to be signed in Q4 2026. Projects must reach financial close within two and a half years and begin operation within five years.
State aid: €5 billion German scheme approved for industrial decarbonisation
The Commission approved a €5 billion German State aid scheme to support industrial decarbonisation under Article 107(3)(c) TFEU and the Guidelines on State aid for climate, environmental protection and energy (CEEAG). The scheme, replacing a March 2025 version, supports sectors under the EU Emissions Trading System, including steel, chemicals, and cement, through two-way carbon contracts for difference. Projects will be selected on cost efficiency and must achieve at least 50% emissions reduction within four years and 85% by contract end. The scheme ensures compliance with EU rules on renewable and low-carbon hydrogen and limits indirect CO2 emissions from electricity.
EU and Japan reinforce industrial and supply chain cooperation
The joint statement issued on 7 May 2026 after the 7th EU–Japan High-Level Economic Dialogue in Brussels confirmed reinforced cooperation on trade, industrial policy, and economic security. The meeting, co-chaired by European Commission Executive Vice-President Stéphane Séjourné and Commissioner Maroš Šefčovič, addressed export restrictions, supply chain resilience in critical minerals, batteries, robotics, and clean tech, and outlined follow-up on the EU–Japan Competitiveness Alliance. The sides acknowledged progress in critical raw materials, battery supply chains, and digital industries, and agreed to continue discussions on steel overcapacity and mutual market access.
EU Legislation (Official Journal)
Commission Delegated Decision (EU) 2026/429: Exemption for pallet wrappings and straps from reuse requirements
Adopted on 25 February 2026 and published on 6 May 2026, Commission Delegated Decision (EU) 2026/429 exempts economic operators using pallet wrappings and straps for stabilising products during transport from the 100% reuse requirements set by Regulation (EU) 2025/40, Articles 29(2) and 29(3). The exemption is justified by the high adaptation costs and lack of sufficiently developed automated solutions for reuse.
Regulation (EU) 2026/1046: Update on emission credits for heavy-duty vehicles
Regulation (EU) 2026/1046, published on 7 May 2026, amends Regulation (EU) 2019/1242 concerning CO2 emission credits for heavy-duty vehicles for the 2025–2029 reporting periods. Manufacturers may now collect credits if their specific emissions are below the target, rather than the reduction trajectory, facilitating earlier deployment of zero-emission vehicles. The change does not apply to urban buses.
EU Council
Upcoming: Competitiveness Council to meet on internal market and industry
The Competitiveness Council (Internal Market and Industry) is scheduled to meet on 28 May 2026.
EP Committee Work
ITRE Committee considers extension of CBAM to downstream goods
On 7 May 2026, the Committee on Industry, Research and Energy (ITRE) examined the draft opinion on the proposal to amend Regulation (EU) 2023/956, extending the Carbon Border Adjustment Mechanism (CBAM) to downstream goods and introducing anti-circumvention measures. The rapporteur is Massimiliano Salini (PPE).
What We're Reading This Week
- Stellantis, Leapmotor deepen ties with joint EV production in Europe: Stellantis and Leapmotor expand their partnership to manufacture electric vehicles together for the European market.
