During 2004-2014 compliance costs were driven up by the introduction of REACH regulations in 2007, CLP in 2008, investment ahead of Seveso III in 2012 and ETS Phase 3 in 2013. Energy legislation also contributes to the rising costs, especially after 2012.
The chemical industry will face increasing costs to comply with stricter emission limits, more ambitious CO2 emission reduction targets and energy efficiency objectives. REACH costs will likely decrease after 2018, but complying with biocidal product and plant protection regulations will become more costly. Costs of compliance with workers’ safety and transport legislation should remain stable.
CCA is a tool to show policy-makers the impact of regulation on the competitiveness of the European chemical industry. Simultaneously, the European Commission is conducting a Fitness Check on Chemical Legislation and reviewing REACH. The aim is to ensure legislation is achieving its objectives in the most efficient way, and rectify any shortcomings without compromising health, safety and environmental protection.
Europe’s chemical industry needs a regulatory framework that is fit for purpose, consistent, cost-effective and which does not negatively impact its competitiveness vs other regions.