FACTBOX - All about the EU Chemicals Reform Bill REACH
Date: 18-Nov-05
Country: WORLD
Below are several facts about the draft law:
WHAT IS REACH?
*REACH is a new regulatory system proposed by the European Commission to make producers and importers of chemicals prove that the substances they put on the market in the European Union are safe for consumers to use.
REACH stands for Registration, Evaluation and Authorisation of Chemicals. It applies to about 30,000 chemicals found in products as diverse as cars, computers and paint.
WHAT DOES THE COMMISSION'S PROPOSAL REQUIRE?
*All chemicals produced in or imported into the EU in quantities of at least one tonne per year must be registered with a central database. A series of tests is required to provide that information, varying according to the volume of the substances in question.
*Chemicals that are of "very high concern" such as those that can cause cancer, damage genes or have an effect on fertility, and those that are persistent, bioaccumulative and toxic (PBT) or very persistent and very bioaccumulative (vPvB) would have to go through an evaluation.
*Chemicals of greatest concern will need authorisation for specific uses. Authorisation will be granted if a company shows that risks can be adequately controlled.
WHAT CHANGES HAS PARLIAMENT MADE?
*The conservatives, socialists and liberals in the European Parliament agreed a compromise package on the subject of registration that reduces the number of substances in the low-tonnage category that would require tests.
That category applies to chemicals produced or imported in amounts of between one and 10 tonnes a year, estimated to be between 17,500 and 20,000 substances.
Members also backed a measures requiring mandatory substitution for hazardous chemicals when alternatives are available.
The full bill was supported by 407 members of parliament, while 155 voted against and 41 abstained.
HOW BIG IS THE EUROPEAN CHEMICALS SECTOR?
*According to industry group CEFIC, the EU's chemicals industry had sales of 586 billion euros ($683 billion) in 2004, making it the leading chemicals producing area in the world, followed by Asia and the United States. Germany is Europe's largest chemicals producer with giants such as BASF and Bayer.
*CEFIC says the EU chemical industry (excluding pharmaceuticals) is made up of roughly 27,000 companies, 96 percent of which have fewer than 250 employees, placing them in the category of small and medium- sized enterprises (SMEs).
WHAT ARE THE COSTS AND BENEFITS OF REACH?
*The European Commission forecasts REACH will cost the chemical industry 2.3 billion euros over 11 years. Total costs to industry -- including sectors such as metals, textiles, electronics and cars -- are estimated at between 2.8 billion and 5.2 billion euros.
*The Commission says REACH would create health benefits worth 50 billion euros over 30 years.
WHAT DO THE CRITICS SAY?
*Environmental and health organisations believe the bill has already been seriously watered down and want to make sure it stays true to its original goals. The chemicals industry is worried that the costs of the new requirements will eat up profits, lead to chemicals being removed from the market and shut down SMEs that cannot cope.
*Other countries have also pressured the EU about REACH. The United States has criticised it for trade reasons, and African nations have said its requirements could harm their mining industries and push them further into poverty.
