Latest impact assessment shows E10bn reduction in direct costs to chemicals industry

Latest impact assessment shows E10bn reduction in direct costs to chemicals industry

The costs of the European chemicals industry regulation policy have been revised sharply downwards as a result of changes made this summer, according to figures published last week by the European Commission.

In the new impact assessment, the direct costs to the chemicals industry of the Reach (Registration, Evaluation and Authorisation of Chemicals) initiative are now estimated at E2.3bn over a 10-year period. This is a reduction of more than E10bn compared with the earlier text, the EC said.

The costs to downstream users of chemicals are estimated at E2.8bn to E3.6bn if the market behaves as expected, with 1%-2% of substances being withdrawn as continued production would not be profitable. Costs could rise by E4bn to E5.2bn if greater changes to the supply chain are required. The overall impact in terms of reduction of EU GDP is expected to be negligible, the Commission said.

The benefits of the policy in terms of environment and human health could be as much as E50bn over the next 30 years, according to estimates of disease reduction. Environment commissioner Margot Wallstrцm acknowledged that a compromise had been agreed, with reduced testing requirements and paperwork, for example. But she maintained that the essentials of the policy remained unaffected and said polymers have been ‘put on hold’ for the moment.

Environmental pressure group Greenpeace accused the chemical industry of scaremongering by talking of much higher costs as a result of the Reach programme and warned that the policy has been “seriously weakened”.