INSIGHT: EU chems invite regulator for tea – and get a battering

By Jonathan Lopez

LONDON (ICIS)–A guest to one’s party does not normally batter you with demands, petition you to be more collaborative and tell you to “stop complaining” about facts and figures none of you can change.

But when it comes to European chemicals and its regulators, the scene is more familiar.

The executive director at the European Chemicals Agency (ECHA) told industry delegates at an event organised by the European chemical trade group Cefic on 6 October to get on with chemicals registrations’ dossiers and start assuming nanomaterials and animal testing “are next” in ECHA’s crusade for safer, more controlled use of chemicals within the EU.

More than 200 chemical industry executives listened quietly to the extensive list of homework tasks Geert Dancet spelled out for them, both for 2018 – when a deadline for small chemical quantities’ registrations comes into place – and beyond.

Despite initial scepticism about Reach within the chemical industry, the most complex and toughest chemical regulation in the world is already nine years old and Dancet confessed how back in 2007 he was sent to Helsinki, where ECHA is headquartered, to spend only seven months in the Finnish capital while setting up the agency.

He continues to be based in Helsinki and has become ECHA’s face. At Cefic’s event, however, he reminded chemical executives he only implements regulation – in other words, the lobbying and the demands for change should be addressed to Brussels, the EU’s capital and where its executive body, the Commission, sits.

Dancet is unafraid to speak frankly about the industry’s vices, or deliver the message mandated by his employers. His 45-minute speech in the Italian city of Florence spelled out what has worked correctly within Reach and what could be improved.

Self-criticism about how ECHA or the Commission have dealt with Reach was minimal, and most of the blame was attributed to the industry itself.

It was just a reminder of what the ECHA wants from companies, however, as most of the speech’s content was already published in May: 56 recommendations on how Reach might work better and on what more needs to be done to improve chemicals safety, with nanomaterials especially in mind.

“[There is a] considerable delay on [nanomaterials, animal testing], perhaps to your liking, but urgent action is coming,” said Dancet at Cefic’s gathering.

“Authorisations and restrictions [of substances] are the best stimuli for substitution. Don’t be afraid, innovate instead. [Many] applications are receiving authorisation [so] help us [and] stop complaining.

“We are making authorisations all the time easier, cheaper and more practical and it’s not a drama to have an authorisation.

“Many people [who] complain have never gone through the process [of application and registration],” were some of Dancet’s gems to his listeners.

European chemical companies often talk about the burden of regulation and how the EU’s tough Reach places them at a competitive disadvantage compared to their peers in other jurisdictions, namely China and the US.

On the other hand, the Commission and ECHA, supported by most environmentalist groups, as well as most of the political left and great swaths of the political right, think Reach is simply too brilliant not to be implemented, and argue it will set up an example for other countries when updating their chemical regulations.

ECHA’s long shadow will continue haunting European chemicals; its executive director
Geert Dancet addresses industry delegates at a Cefic event in Florence, Italy
Source: Jonathan Lopez/ICIS

Anecdotal evidence about some countries following Reach has been voiced – the CEO of South Korea’s major chemical firm Songwon arguing it was a condition to trade with the EU after the two jurisdictions signed a free trade deal – but there have been many indications China or the US are nowhere near that stance. 

Moreover, the US American Chemistry Council (ACC) lobbying in Washington achieves a more industry-friendly approach than that of Cefic in Brussels. Not surprisingly, US regulations are less stringent than Reach.

However, the looser hand in the US also raises concerns about human health and environment.

A key battleground for EU chemicals within the final phase of Reach implementation will come in 2018, when many small and medium-size (SME) companies will have to face the registration of small quantities of chemicals.

Some industry participants have shown concerns that many SMEs will be unable to face the costs, and may risk going out of business. ECHA’s Dancet told them they are willing to help along the way, but asked the industry for honest and committed participation.

However, in an interview he gave another hint of where SMEs may need to head to – rationalisation of their business, reducing their product portfolio. Asked if that could hurt employment, he was confident by focusing in core products firms could maintain jobs and competitiveness.

Chemicals SMEs are, precisely, those who create the most employment. In a key high-paying sector like chemicals, and as manufacturing in the EU shrinks in size and global importance, it is important the still 1.17m chemical workers across the 28-country bloc keep their jobs.

The figure corresponds to the second quarter, as per Cefic’s own data published earlier in the day. Although it spoke about stable business conditions, prices and sales during the April-June quarter decreased by more than 5%, although output did so by only 0.2%.