The European Union’s approach to chemicals regulation is at a pivotal juncture. The Chemicals Strategy for Sustainability (CSS), introduced under the previous Commission, aims to protect health and the environment, boost innovation, and enhance EU competitiveness. However, there are rising doubts about its success in achieving these goals.
The ambitious nature of the strategy, coupled with its complexity and inadequate design, has led to increased uncertainty and costs, ultimately slowing the substitution of harmful chemicals. The initiative on safe and sustainable chemicals, which arguably should have been the foundation, is still in its early stages of development. Additionally, the long-awaited and promised REACH revision is yet still to materialize.
The New Commission's Agenda: A Pivot in Priorities
The current Commission is set to present a comprehensive Action Plan for the Chemicals sector, a Chemicals Industry Package, a revision of REACH, a sector-specific Omnibus, and a “Simplification” of the chemicals regulation. This plethora of initiatives can and will create some confusion and misalignment.
The recently leaked Omnibus, covering chemicals that focus onclassification, labelling and packaging of substances and mixtures (CLP) and the use of chemicals in cosmetics and fertilizers, provides more insights on what to expect. Some technical changes are aimed to reduce burden and costs, whilst other changes ensure greater legal clarity on use of substances classified as CMR 1a, 1b and 2.
This wave of initiatives, while intended to create a new framework, creates a complex and potentially confusing landscape for organisations to navigate. Several stakeholders have already expressed their concern or support and in some areas more details are required to fully understand the impact.
The emphasis on improving the competitiveness of the chemicals sector and the EU's global standing has been reiterated by the current Commission, mirroring the previous Commission's focus on greener practices when introducing the CSS. The play around the Green Claims is on and it will be interesting to see how the institutional and political dynamics will work on planned regulatory changes on chemicals, and we will get a first taste soon as the Chemicals Omnibus is announced to be published on July 8.
Strategic Outlook & FIPRA’s Recommendation: Prioritise Pragmatism
The central theme for the coming years will be the dynamic between the EU’s green ambitions and its industrial policy. For chemical policies to be effective, simplification, implementation, and enforceability should be prioritized to ensure tangible benefits for competitiveness, health, and the environment. The success of a chemicals policy lies in striking a balance between ambitious goals and practical implementation. By focusing on clear, straightforward policies, the EU can pave the way for a more competitive, healthier, and environmentally sustainable chemicals production and use.
As a Senior Advisor, Jan Ahlskog brings more than 25 years of expertise advising Fortune 500 companies on some of their toughest public affairs challenges to FIPRA clients. He is known for his especially effective counsel on consumer goods matters, notably concerning food and beverages regulation. He is also sought after for his strategic insights on chemicals and mining matters, as well as policies to support the green transition.
