Preconditioned EU Strategy for Competitiveness of Chemicals Industry

At the Green Economy Business Summit on June 8, 2022, it was highlighted that the successful implementation of the Chemicals Strategy for Sustainability (CSS) is "preconditioned" so that the European chemical industry is able to keep its competitiveness.

Another underlined emphasis is their stand that for the timeline of REACH revision, there will be no compromising for the CSS as long as it is steered in the right way. The main concern discussed was the fear of decreasing the competitiveness of the bloc’s industry on the global market upon imposing the stricter regulation of chemicals in the EU.

The Commission is now working on a transition pathway to earn more time for the industry to adapt to any upcoming regulatory changes, intending to continue the new innovation and competitiveness the regulatory system has brought to the EU market and industries. Although several external factors such as the war in Ukraine has however hampered the measures under the CSS to be implemented holistically, the Commission expects no postponement, in general, to fulfil the EU’s toxic-free future.

According to two studies done by trade body, Cefic, regarding the potential impact of changes to REACH in 2021, it plans to increase hazard classes to the CLP Regulation and extension of the Generic Risk Approach (GRA) could possibly lead to a loss of 12% of the EU chemical portfolio by 2040. Plus, the introduction of a Mixture Assessment Factor (MAF) of ten could as well impose high costs for the industry, along with significant turnover losses and job losses.

Despite the conducted studies, it is believed that the transition pathway planned as a collaborative exercise with relevant stakeholders shall provide the industry with a clearer idea to manage and put things together by the end of 2022 ideally.