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What the Commission is doing

Competitiveness and innovation are crucial for the ongoing development of the chemicals industry, and EU industry at large. The chemicals industry is very energy intensive and is dependent on favourable climate change policies. The European Commission is working to support the sector in a number of ways. It implements policies to facilitate structural change within the sector itself. These include policies that support the ‘clustering’ of related aspects within the sector and the implementation of ‘smart specialisation’ regional strategies to stimulate large scale investments.

Regulation

Regulation has a significant impact on the industry. The quality of legislation, along with its correct implementation and proper enforcement are highly significant, not only for the achievement of health and environmental objectives, but also to create a fair level playing field for the chemicals industry. Together with the removal of trade barriers, this can boost the international competitiveness of the EU chemicals industry. The following steps were taken as a result of the findings of the High Level Group on the Competitiveness of the European Chemicals Industry:

Fitness check on chemicals legislation (excluding REACH)

The European Commission is conducting a fitness check on chemicals legislation (excluding REACH) as part of the REFIT programme.

Background on REFIT

In December 2012, the European Commission announced the launch of the Regulatory Fitness and Performance Programme (REFIT). According to the related Communicationpdf Choose translations of the previous link , this programme will “identify, assess, adopt, and monitor the implementation of initiatives, which will result in significant regulatory cost reduction or simplification”.

Among the tools used under REFIT are fitness checks. These are comprehensive policy evaluations designed to ascertain whether the regulatory framework for a policy sector is fit for purpose.

Links to further information on REFIT

Introduction to the fitness check on chemicals legislation (excluding REACH)

The European Commission Communication COM(2013) 685 finalpdf Choose translations of the previous link  ("REFIT: Results and next steps") identified a number of policy areas, in which a regulatory fitness check should be conducted. One of those areas identified is the most relevant legislation relating to chemicals (excluding REACH) as well as related aspects of legislation applied to downstream industries.

The EU legislative framework for the risk management of chemicals comprises a complex interplay of legal acts. These range from horizontal chemicals legislation (e.g. the CLP Regulation) to product-specific and sectorial legislation, related to particular uses of chemicals in downstream industries.

These intricacies, in particular the many cross-links between the different legal acts, warrant a broader evaluation of the legal framework, in the form of a fitness check.

The goal of the fitness check is to assess the relevance, coherence, effectiveness, efficiency and added value of the legislative framework for the risk management of chemicals. It will also identify excessive administrative burdens, overlaps, gaps, inconsistencies and/or obsolete measures. This will promote better legislation, making it more responsive to current and future challenges and help improve implementation.

The Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs and and the Directorate-General for the Environment share responsibility for this fitness check.

Fitness check roadmap

The fitness check roadmappdf Choose translations of the previous link  (315 KB), outlining the aim of the exercise, its exact legal scope and the related evaluation questions, is now available. In case of comments, please use the dedicated feedback form on the Commission's roadmap web pages (type 'chemicals' in the field 'Name'). A draft list of relevant legislationpdf Choose translations of the previous link  (109 KB) is also available. 

Supporting studies and consultations

DG Internal Market, Industry, Entrepreneurship and SMEs (DG GROW) has launched a study in support of the fitness check on chemicals legislation (excluding REACH) (see Call for tender).

The study is being conducted between July 2015 and September 2016 by RPA (Risk & Policy Analysts Limited), together with Milieu Ltd, Ökopol (Institute für Ökologie und Politik) and NCEC (National Chemical Emergency Centre, a division of Ricardo-AEA). It includes an evaluation of CLP and the interplay between CLP and related legislation, in particular other legislation governing hazard identification, classification and communication ('horizontal links') and downstream legislation that establishes risk management measures directly or indirectly triggered by a CLP hazard class ('vertical links').

Stakeholder consultation is an important element of the fitness check. The consultation strategy comprises the following actions:

For further information, please contact DG GROW.

Assessing Cumulative Costs

In 2014, the Commission launched a study analysing cumulative costs of the most relevant EU legislation and policies for the EU chemical industry. The study will identify and quantify direct and indirect costs. The EU legislation, subject to analysis, includes chemicals legislation, climate policy, environmental protection, energy policy, competition policy, trade, consumer and health protection, and workers’ safety policies. This study will be followed by another study, to be launched in 2015, that will compare costs with international competitors, and draw conclusions on their impact on the competitiveness of the chemicals sector.

Assessing the implementation of REACH legislation

In 2013, the Commission published the first general report on the implementation of its regulation on the registration, evaluation, authorisation and restriction of chemicals (REACH). It concluded that REACH functions well and has delivered on all objectives that could be assessed. Some adjustment needs were identified, but they were balanced against the interest of ensuring legislative stability and predictability. The Commission decided not to propose any changes to the enacting terms of REACH, while using all opportunities to further optimise its implementation at all levels. Activities focus on reducing the financial and administrative burden on small and medium-sized enterprises (SMEs) and the simplification of the authorisation process.

Competitiveness

Most of the industries linked to EU manufacturing and services are using products from the chemicals sector. New materials and processes, which originate in the chemicals industry, help other sectors to innovate. A competitive chemicals industry is not only important for creating growth and jobs in the chemicals sector, but also for the entire EU manufacturing industry. This improves living standards and generates employment and wealth throughout the EU.

In addition to improvements to the regulatory framework, the Commission also provides regulation guidance and support for SMEs, as well as actively supporting innovation in key areas.

Innovation

The chemicals sector is at the forefront of innovation as a solution provider for many societal challenges, as well as for many other economic sectors. New forms of industrial cooperation between the chemicals industries and other industries are emerging that shape new industrial structures and help keep manufacturing jobs in Europe.

Policies that facilitate structural change, such as cluster policies and the implementation of smart specialisation regional strategies are crucial to stimulate large-scale investments in the chemicals sector. These include bio-refineries and recycling industries, as well as import terminals for gas.

Nanotechnologies and materials present many opportunities for the chemicals industry, with a number of new applications developed. Those include a high number of consumer products such as consumer electronics, UV-filters in paints, renewable energy applications, many medical applications, and lithium-ion batteries for electric cars.

Those applications have the potential to create major technological breakthroughs, and nanotechnologies have been identified as a key enabling technology. In order to ensure the safety of nanomaterials, the Commission is reviewing the regulatory framework, most prominently the Annexes of the REACH Regulation. There is also significant research on nanomaterial safety as part of the 7th Research Framework Programme and Horizon 2020.

Resource and energy efficiency

The chemicals industry is a strong driver of resource and energy efficiency, and has high potential to provide decisive innovative 'game changers'. The Commission supports initiatives in key areas, e.g. through the Spire Programme for innovative materials and processes, and the Bio-based Industry Joint Undertaking under Horizon 2020. These initiatives can contribute to decarbonisation by promoting higher resource efficiency including through the bio-economy or the reuse of CO2 as a chemical feedstock. The new alliance between chemicals, agriculture, and waste converters in the Bio-based Joint Undertaking offers new business opportunities and helps make the concept of the 'circular economy' a reality.

What Directorate General (DG) Internal Market, Industry, Entrepreneurship and SMEs does

DG Internal Market, Industry, Entrepreneurship and SMEs oversees the implementation of EU legislation relating to REACH, CLP, the principles of Good Laboratory Practice (GLP) and sector-specific legislation on chemicals such as fertilisers, detergents, explosives, pyrotechnics, and drug precursors.

It also holds meetings and conferences related to key issues including the follow-up to a High Level Group on the Competitiveness Choose translations of the previous link  of the European Chemicals Industry.

Events

Read more on chemicals and events.

Links

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