REACH revision: Industry should be preemptive, not defensive

With an official decision on whether to reopen REACH — the Registration, Evaluation, Authorisation and Restriction of Chemicals — expected in the first half of 2021, FIPRA International on September 24 hosted a webinar exploring how any potential revision of the landmark regulation may affect industry.

Moderated by Dirk Hudig, Partner at FIPRA International, the webinar featured Geert Dancet, FIPRA Special Advisor and former Executive Director of the European Chemicals Agency (ECHA).

Change to REACH “highly likely”

The College of Commissioners is set to adopt a new chemical strategy for sustainability on October 14 to revise the way chemicals are designed, produced, used and disposed.  

The high expectations of the European Parliament for green chemicals policy, as laid out by the ENVI Committee in June seem to make changes to REACH highly likely. 

Additionally, NGOs have publicly requested the Commission to overhaul current chemical legislation and pass an ambitious chemical strategy for sustainability. However, 18 industry associations call on the Commission not to reopen REACH at all.

Given the pivotal role of the Green Deal, the need for a strong green recovery post Covid19 and the pressures coming from the European Parliament, further action on the legislative front can be expected as from next year. Should the Commission choose for a revision of REACH , its proposal with an impact assessment can be expected within 12 months. If Parliament and Council agree on the changes, an 18-month timeframe plus an additional 12 months to come into force, would be realistic.

One substance, one assessment approach

The focus will be on the risk management side with a “one substance, one assessment” approach. This would require a more comprehensive knowledge of the uses of a substance than what is currently defined. Industry would need to be part of the assessment since they possess detailed information on manufacturing, uses and available alternatives.

The authorization procedure could be simplified for low volumes and low risk while its general complexity could be reviewed and made more efficient and shorter in time. REACH needs some adaptations if it is to be coherent with the circular economy target. The interaction of waste and chemicals legislation has not led to any specific legal proposals while a resource-based approach is desirable.

If REACH is reopened, industry could benefit from a sort of arbitration mechanism on the cost of data sharing.

Expected increase in chemicals ambition

With the EU climate change ambition for 2030 increased to 55%, a significant increase in the chemicals ambition should also be expected. Companies are anticipating these societal changes and are divesting from coal or petroleum based, hazardous substances and investing in hazard-free alternatives.

An intelligent approach would be to not think only defensively but preemptively. To identify ways REACH can facilitate compliance for industry through flexible risk reduction, industry associations should reflect on how to change REACH to their benefit without undermining its intended sustainable ambitions.

The financial mechanisms designed to facilitate industrial adaptation during the green transition should not only finance climate or R&D projects but sustainable chemistry projects too.

Industry and authorities should agree on a definition of chemicals of concern to give certainty for industry on continuous use of a number of less hazardous substances derived from petroleum or coal. The definition of a chemical of concern is extraordinarily important due to the potential related stigma.

Regarding the question on whether revising REACH could be done through amendments to the annexes or a recast, there are very clear legal limitations of what can be altered via these routes and a change through REACH itself would be more straightforward.

In terms of advocacy, a minimum package on which all industry agrees is likely while separate positions for particular types of industries are probable. If REACH is reopened, more industries could be covered.

Industry and authorities have a good tradition of dialogue on chemicals and it would be wise to start reflecting early on the desired changes and start testing the grounds with associations for potential converging interests and develop their own agenda.

On October 14, 2020, the Commission is expected to publish its revised chemicals strategy. FIPRA’s experts in energy, environment, chemicals, industrials and mining stand ready to guide clients through what impact a potential revision of REACH may have on their business.