Landmark chemical bill for Europe

InTech, Nov 2006

The cost of complying with new chemical regulations-$6.3 billion-in the European Union (EU) may be frightening to the chemical industry, but automation companies are comfortable that the action is opportunity.

The Wall Street Journal reported in a setback for global industry that a European Parliament panel strengthened the landmark bill that would more tightly regulate chemicals in the EU before sending it to final passage.

The petrochemical industry had been trying to reduce the estimated $6.3 billion cost of complying with the new law over the next decade by asking the EU to accept chemical-safety and environmental data already submitted to other regulatory bodies.

That would have reduced the number of expensive new tests.

The text of the law-Reach for "registration, evaluation, and authorization of chemicals"-already encourages the EU to make use of OECD data.

The environmental panel also voted to require companies to substitute safer chemicals whenever possible in manufacturing processes.

While the panel's actions are not final, they will be tough for industry to reverse at this stage.

Far reaching

Some numbers behind the EU's chemicalregulation proposal (all estimates):

* Cost to industry overall: $6.3 billion over 11 years

* One-time cost to petrochemical industry for reproducing existing test data: $250 million

* Number of chemicals subject to the law: 30,000

* Number of chemicals subject to tightest regulation or removal from market: 1,500

* Number of year it will take EU to evaluate safety studies on chemicals of highest concern: 50 to 80 years

Source: European Commission, NPRA, WSJ