26 November 2003 17:19 [Source: ICIS news]
LONDON (CNI)--The European Commission's proposed new chemicals registration, evaluation and authorisation (Reach) system will cost Denmark's chemicals producers between DKr45m and DKr85m ($7.2m/Euro6.1m to $13.6m/Euro11.4m) a year for 11 years, consultants have estimated.
A first approximation of Reach costs to the country suggested the total Reach impact will be equivalent to between 0.002% and 0.003% of Denmark’s gross national product (GNP).
Consultants Cowi, working for the Danish government, said the costs of implementing Reach in Denmark will not exceed the lower end of European Commission (EC) estimates. The EC estimates are for costs to the entire European chemical industry of between Euro2.8bn and Euro5.2bn ($3.3bn to $6.2bn) a year.
The consultants figures are well below European industry estimates and are included in a government report to the Danish parliament. However, Cowi said its numbers are based on the EC’s analysis and relationships between Denmark’s GNP and that of the EU. The structure of Denmark’s chemicals industry, with few primary chemicals producers, has also been taken into account.
Cowi was asked by the Danish government to look at existing structures and it is not yet clear how much further the government expects to go in trying to estimate Reach impact costs downstream from chemical producers and on Danish industry and the economy as a whole.
Denmark’s process industries association (PIBF), which represents chemicals producers and users, said that Reach will be costly and it supports requests for a balanced business impact study of Reach at the EU level using agreed methodologies, PIBF director Jacob Jessen, told CNI.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections