Chemicals industry: European Commission publishes new draft EU chemicals policy, May 2003

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Series Details 12.5.03
Publication Date 12/05/2003
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Touted as the EU's most important legislative package in 2003, and potentially the most important regulatory package for Europe's environment in the next decade, the European Commission published its new EU chemicals policy on 7 May 2003 [IP/03/646] and launched an eight week internet consultation for all stakeholders.

The long-awaited draft proposal for a new EU chemicals policy follows an intense period of debate between relevant stakeholders, which focussed on the battle between delivering protection for the environment versus the vast costs facing the industry to implicate such legislation.

Announcing the proposals, European Commissioners Erkki Liikanen [Enterprise] and Margot Wallstrom [Environment] suggested that they had devised a policy which would satisfy both sectors:

"The aims of the proposed new Regulation, which will replace 40 different pieces of current legislation, are to increase the protection of human health and the environment from exposure to chemicals while at the same time to maintain and enhance the competitiveness and innovative capability of the EU chemicals industry. In delivering both these aims, the proposals aims at fully conforming to the balanced approach required by sustainable development".

Background

The chemicals industry is one of Europe's most important industries and its competitiveness is viewed as essential in achieving the Lisbon goals of making the EU the world's most competitive economy by 2010.

However, it is also recognised that the industry is responsible for producing chemicals that could endanger public health or harm the environment. Whilst EU legislation exists to regulate the production of such chemicals, public concern has grown in recent years about the potential impact of these products and environmental groups have lobbied the European Union intensively to improve the current EU regulatory framework for the chemicals industry.

Under pressure from these groups, a review of the existing legislation was undertaken in 1998. The completed report [SEC (1998) 1986 final], presented in November 1998, identified a number of shortcomings such as:

  • A lack of information available about the properties of existing chemicals (first marketed before 1981)
  • Risk assessments not delivered within a reasonable timeframe
  • Too much onus on public authorities to provide proof of risk

The report also concluded that innovation in the chemicals sector was impeded by stricter requirements concerning new chemicals compared to the current rules applied to existing chemicals acts as an impediment to innovation.

White Paper for a strategy for a future EU chemicals policy

Following discussions a the Council of Ministers on the shortcomings of existing legislation governing the EU chemicals industry, the Environment Council called on the European Commission to come forward with proposals for a new strategy on chemicals by the end of 2000

Responding to the Council's request the European Commission duly adopted the White Paper [COM (2001) 88] on a strategy for a future chemicals policy on 13 February 2001 [IP/01/201]. The White Paper takes account of the Communication on the Competitiveness of the Chemical Industry (COM 96/187) and the Communication on the Precautionary Principle (COM 2000/1). It also draws upon the various submissions made by stakeholders, the analyses made in several Member States and several meetings organised in Member States. The White Paper was produced under co-responsibility between the Commission's Directorate Generals for Environment and Enterprise.

The main aim of the White Paper was to deliver a new Chemical Strategy capable of ensuring a high level of protection for human health and the environment, while ensuring the efficient functioning of the internal market and stimulating innovation and competitiveness in the chemical industry.

There were five key elements to the new strategy:

  • A single efficient and coherent regulatory framework which provides equivalent knowledge about the hazards of substances marketed before and after September 1981 ("existing" and "new" substances) and their uses in order to provide coherence in the level of protection.
  • Reversal of responsibility from authorities to industry for testing and risk assessment of chemicals.
  • Promotion of innovation and competitiveness without compromising the high level of protection.
  • Introduction of a tailor-made authorisation system where stringent control is ensured for the most dangerous substances.
  • Increased transparency and information about chemicals.

It also sought to establish a new registration system for chemicals, to be known as REACH, which would be based on registration, evaluation and authorisation.

More background on the White Paper can be found on the DG Enterprise Chemicals website.

Keen to elicit response from both the industry itself and environmental lobby groups, the European Commission organised a Stakeholder's Conference on the subject of the White Paper on 2 April 2001. This was followed by a second Stakeholders' Conference on 21 May 2002 to discuss the business impact of the proposals.

The Council's comments on the White Paper and the opinion of the European Parliament are also available.

New EU chemicals strategy

Following on from the debate about the White Paper, the European Commission began work on proposals for a new regulatory package for the chemicals sector. These had been expected in 2002 but were delayed following intensive lobbying on the part of both businesses and environmental groups.

The new policy, published on 7 May 2003 [IP/03/646], seeks to address the demands of both these sectors whilst delivering a policy that will encourage a competitive and innovative chemical industry in Europe.

There are three key features to the new strategy:

  1. A new system of Registration, Evaluation and Authorisation of Chemicals to be known as the REACH system
  2. A new Chemicals Agency to manage REACH that will have the task of ensuring the efficient operation of the new system, including providing advice to the European Commission, and guidance to Member States and to enterprises, including SMEs.
  3. Increased research and innovation by allowing research and development to take place without registration for 5 years, extendable to 10 years, which is a considerable extension of existing provisions.

Through these initiatives the European Commission aims to deliver seven objectives, based on those in the White Paper, that need to be balanced within the overall framework of sustainable development:

  • Protection of human health and the environment
  • Maintenance and enhancement of the competitiveness of the EU chemical industry
  • Prevention of fragmentation of the internal market
  • Increased transparency
  • Integration with international efforts
  • Promotion of non-animal testing
  • Conformity with EU international obligations under the WTO.

The main focus of the new strategy is the REACH system which the European Commission believes "will put Europe well in advance of most other countries in terms of the health and safety guarantees provided by manufacturers and importers of chemicals".

REACH will offer a single, integrated system where all chemicals may be registered, evaluated and authorised. The new system will place a duty on companies which produce, import and use chemicals to assess the risks arising from their use requiring new test data to be generated in justified cases - and to take the necessary measures to manage any risks they identify. This will reverse the burden of proof from public authorities to industry for putting safe chemicals on the market.

To fulfil the commitments of other areas of community legislation, testing results have to be shared to reduce any likely animal testing and registration of information on the properties, uses and safe use of chemical substances will be an integral part of the new system in keeping with the principles of openness and transparency.

The scope of the reach system will extend to all chemical substances produced or imported in volumes of 1 tonne or more per year, per manufacturer/importer, with special provisions for intermediates and polymers.

As to the timetable of REACH all substances that are already on the market will be phased gradually into the new system, with substances produced in high volumes and CMRs registered first. Registration deadlines will be calculated from the year the legislation enters into force so that the new obligations will apply from:

  • year 3 for high production volume chemicals (1,000 tonnes or more/year/ manufacturer or importer) and CMRs in lower volumes;
  • year 6 for production volumes in the range of 1001,000 tonnes; and
  • year 11 for low production volume chemicals (1100 tonnes).

More details on the REACH system can be found in the European Commission's MEMO on the issue: MEMO/03/99

Reaction to the chemicals strategy has been mixed. Heralded by those within the EU institutions as a radical approach to protecting public health, environmental groups have claimed the proposals do not go far enough. Moreover, they fear that the delay in producing the proposals means that they will only get past their first reading in the European Parliament before enlargement on 1 May 2004, which may delay the process further.

However, industry groups, who warned the European Commission to take into consideration the costs of a new registration scheme, suggest that such a new "bureaucratic regime" would prove too expensive for businesses and the European Chemicals Industry Council has warned that the reforms threaten 1.7 million jobs.

The European Commission estimates that the new measure will cost up to €7 billion ($7.94bn) and taken at least 10 years to implement but with such strong opposition from industry it may be a while yet before the Council and the European Parliament give their required approval to the proposals.

The new REACH system should put Europe well in advance of most other countries in terms of the health and safety guarantees provided by manufacturers and importers of chemicals.

Further links within European Sources Online

European Sources Online: European Voice:
04.05.00: Green campaigners call for chemicals policy overhaul
09.11.00: Debate rages over Union rules for testing chemicals
25.01.01: "Cumbersome" EU rules spark bad chemical reaction
05.07.01: Chemical industry braced for fresh battle over testing
09.01.03: Too many chemical tests would burden industry, says MEP
20.03.03: Wallstrom's vision for safe use of chemicals in Europe
20.03.03: Long-awaited regulatory package involves tricky balancing act for Commission
20.03.03: Does US input help or hinder chemicals review?
03.04.03: Parliament stalling branded "appalling"
 
European Sources Online: Financial Times:
15.06.02: New European rules "could force chemical groups overseas"
14.10.02: "Heavy hand of Brussels" in the dock
06.11.02: Chemical controls lead to rift in Brussels
16.12.02: Too many rules damaging economy - Brussels
04.03.03: Brussels softens plan to track chemicals
04.03.03: Rules for regulators

External links

EU Institutions

European Commission:
Press Releases:
  07.05.03: Commission publishes draft new Chemicals Legislation for consultation [IP/03/646]
 
Memos
  07.05.03: Questions and Answers on the new Chemicals Policy REACH [MEMO/03/99]
 
DG Enterprise
  Homepage
  The New Chemicals Legislation REACH
  The strategy for a future Chemicals Policy - REACH

Industry organisations

European Chemical Industry Council (CEFIC):
Homepage
EU Chemicals Policy Review [Dedicated website to Reform of EU Chemicals Policy]
06.05.03: Cefic President Eggert Voscherau sees Chemicals Policy as the "Test Case" for the New Industrial Policy
 
American Chemical Industry Council
Homepage
Reference and resource documents on the EU's chemicals policy
 
European Council of the Paint, Printing Ink and Artists' Colours Industry (CEPE)
Homepage

Environmental Organisations

Friends of the Earth:
Homepage
Press Releases:
  07.05.03: EU Commission delays chemical reform
  Safer Chemicals campaign
  New EU chemicals policy: The view of environmental NGOs [July 2002]
 
European Environmental Bureau
Homepage
Press releases:
  05.05.03: Background briefing: New EU Chemicals Policy
  07.05.03: Delay and indecision as Prodi Commission fails to protect us from hazardous chemicals
 
Publications
  European chemicals policy reform: from paralysis to action [October 2002]
  A new EU chemicals policy - some key arguments [February 2002]
 
Greenpeace
Homepage
  06.05.99: Greenpeace says EU chemicals policy endangers environment and health
  30.04.03: Hidden poisons in your home: Do you want to remain an unwitting consumer?

Media Organisations

BBC News Online:
07.05.03: EU tightens chemical rules

Helen Bower

10 May 2003

The European Commission published its new EU chemicals policy on 7 May 2003 and launched an eight week internet consultation for all stakeholders

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