Implementation of REACH and CLP: Overview, Status and post 2018 possible actions

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Implementation of REACH and CLP: Overview, Status and post 2018 possible actions European Seminar Chemical Risk Assessment REACH and CLP Aveiro, Portugal, 27 th of November 2017 Sylvain BINTEIN, Policy Coordinator European Commission, Directorate General for the Environment Environment

Suggestion: MS, Industry or COM/ECHA ECHA (MsC, RAC, SEAC) opinions European Commission (DG GROW/DG ENV agreement => Inter Service Consultation (DG EMPL, Sec Gen, Legal Service, DG SANTE ) Public consultation (6 months) Legislative text amending REACH/CLP (annexes) If notificaton needed WTO (60 d) Committee (28 Member States) If scrutiny needed European Parliament/Council (3 months) Agreement European Commission Decision Law in OJ

70 174 What has REACH achieved so far? Restricted (group of) Substances Substances of Very High Concern 460 Risk management proposals 1 500 Dossiers for HPV checked for compliance 17 000 Substances registered under REACH 2010 2013 2018 Substances ~ 3 400 ~ 3 000 up to 25 000 Dossiers ~ 20 000 ~ 9 000 up to 60 000 >2 million Study summaries on properties and effects of chemicals Environment

What has REACH achieved so far? (2) probably the best chemicals database worldwide, on physico-chemical and toxicological properties, uses and classification & labelling Environment

What has REACH achieved so far? (3) Improved information flow along the supply chain (via extended safety data sheets) from manufacturer to downstream user to the (end) consumer This leads to better workers protection through better safety data sheets and knowledge about exposure and hazard REACH authorisation is the driving force for substitution of hazardous substances at the workplace Environment

Benefits of restrictions done between 2012 and 2017 includes - Health impacts equivalent to over 380 million per year - Reduction of 70 tonnes of releases of substances of concern per year 170 million Total costs 170 million per year Thousands of people 380 million 70 tonnes of releases Positive health impacts or removed risk for at least thousands of consumers and workers Environment

Risk management under REACH Authorisation ( of substances of very high concern - SVHCs) 174 identified SVHC 31 SVHC prioritised to be subject to authorisation 91 applications for authorisation for 23 substances, for 155 uses of these substances (59 uses so far authorised, under strict conditions) Environment

What has REACH achieved so far? (4) Innovation: In particular SMEs develop safe alternatives to substances which have to be authorised before use or are restricted in their use (also non-chemical solutions, such as new process design, product design ) Improved consumer protection by restrictions for hazardous substances in textiles, paints and other household products that we use on a daily basis Improvements in waste management, in particular for the (up-coming) circular economy: Recycling of plastics without toxic flame retardants and heavy metals BUT Environment

REACH evaluation 2017- evidence base Legal obligation for the Commission to review the functioning of REACH every 5 years ( Articles 117 (4) and 138) Information sources: i. Member States reports: June 2015 ii. ECHA reports: June 2016 (functioning of REACH), 2014 and 2017 (alternatives to animal testing) iii. 16 thematic studies carried out between 2014 and 2017 iv. Stakeholders views v. Experience gained through concrete cases

REACH evaluation 2017 Positive feedback of the Regulatory Scrutiny Board of the Commission on the 29 September Submission for (interservice) consultation to the other Commission services and adoption A Commission communication will also be delivered in parallel with the Staff Working Document of the REACH evaluation => Q1 2018

The time aspect: Too slow Harmonised classification and labelling (CLH) Approximately 3 years* Identification of Substances of Very High Concern (SVHC) 6 months** Recommendation and addition to Annex XIV: 3 years Application for authorisation: 2 years Decision for (no) authorisation: 2 years * Restriction Approximately 3 years* The minimum process time in ECHA and the EU Commission decision process : to be added : - the transitional period for entry into force. - the preparation of the dossiers for these processes.

Already very long, but if on top we need substance evaluation Evaluation, 1 year (stops here if no further information needed) Substance evaluation Decision making stage ca. 1 year Testing: ca. 1-3 years depending on the case Follow-up evaluation, 1 year C&LH (if necessary) SVHC Annex XIV prioritisation Restriction 10 years absolute minimum currently

Some possible outcomes of REACH evaluation Registration: update of registration dossier Compliance, post-sief, registration of polymers, information requirements for low tonnage substance, 2018 is not the end Evaluation: Too slow, proposal from some to MS to mandate EU agencies to contract testing directly Restriction: strengthen public consultation, simplify the restriction dossiers, more MS to be involved, scope of 68(2), 69(2), use of precautionary principle Authorisation: further simplifications, SVHCs identification: more C&LH proposals Interaction with other legislations: e.g.: OSH Enforcements: huge difference between MS

REACH evaluation 2017: COSTS Half the registrations are for substances produced outside the EU. Registration costs: 2.3 to 2.6 billion Euros over the 10 years so far. Cost estimates for the registration of new substances USA: 6,500 Korea : 50,000 EU: 86,000 Canada : 116,000 Japan 120,000 China 125,000 Total cost for dossier evaluation 200 million (additional data mainly gaps in original dossier) Between: 2007-2016, ECHA's budget : EUR 757 million and the fees collected by ECHA amounted to EUR 581 million Total costs of restrictions 170 million per year. Cost for authorisation: study just finalised REACH appears to have strengthened the internal market but there is no clear (positive or negative) net impact on competitiveness and innovation as those depend on other more important factors that influence the market.

REACH evaluation 2017: BENEFITS Benefits of REACH will still take time to materialise but benefits for human health over a 30-year estimated as 50 billion avoided environment damage over a 25-year as 50 billion The 10 years update of REACH Baseline Study: decline of the risks caused by chemicals & improvement of the quality of substance-specific data available for risk assessment Another study: registration requirements for low tonnage substances provide about 10 benefits for every 1 of cost Restrictions: health and environmental benefits > 380 million per year and a reduction of about 70 tonnes of releases of substances of concern

Results of the study on the impacts of authorisation Industrial stakeholders advocacy activities: Authorisation requirement is only a burden (cost, administration, regulatory uncertainty) There is no added value and it will lead to delocalisation of industries outside of the EU Substances are used only in industrial sites, closed system, exposure and emissions reduced to the minimum already There are no alternatives for the current uses, they are critical uses Substitution already happened in the past, because of CMR classification OSH legislation

Key findings of the study Stakeholder survey: 57% of respondents (n = 46) reported major impacts in the market after SVHC identification Reduction in availability of supply for their use Increase in SVHC price Conditions being imposed on safe handling and use Increase in R&D on alternatives but this diverts funds for new investment and new market opportunities Trigger for substitution where technically feasible Alternatives: no clear indications of changes in 18 the market

Key findings of the study Substitution 43% of respondents to the online industry survey said they had substituted a use of a SVHC Survey respondents (n=83) identified: Over 60 examples of substitution of SVHCs Over 70 examples of investment in substitution related activities In some cases, substitution had very high costs Applying for authorisation would have been less expensive, at least in the short term Importance of regulatory uncertainty (especially for investment plans and long term contracts with customers) Stigma of using a SVHC 19

Key findings of the study When is substitution happening? 30%: at Candidate Listing 23%: at the recommendation 25%: at the inclusion in Annex XIV Drivers for substitution REACH authorisation: 59% REACH, but not specifically authorisation: 18% 20

Conclusions - Our initial question "Is authorisation only a burden with no added value?" can now be answered: => no, we see that it achieves its objectives in terms of substitution and improvements in the way SVHCs are used - Are the benefits higher than the costs? => It is not possible to answer from the results of the study. 21

Classification and labelling Inventory The C&L Inventory is the central database containing classification and labelling information about notified substances available on the EU market Harmonised classification (more than 4500 substances or group of substances) and industry notifications (self classifications) Based on 6 million notifications for today 130 761 substances, growing every day BUT NO harmonisation in self-classification: need to act but how! Environment

Chemicals Fitness Check - Policy Context REFIT Programme Fitness check on chemicals legislation (excluding REACH) REACH REFIT Evaluation Cumulative benefit & cost assessments Circular economy Plastics strategy Chemicals-product-waste interface 7 th EAP Non-toxic environment strategy (roadmap pending) Environment

REACH and the circular economy Hazardous materials, POPs, substances of concern Environment

Chemicals and waste Governed by the following principles REACH does not apply to waste Classification of waste as hazardous is largely based on rules set in the CLP Regulation REACH could set limits to the use of certain substances if they meet the end of waste (EoW) criteria

REACH and waste Waste is not subject to registration, evaluation, authorisation or restrictions Those REACH procedures apply only to materials (substances/mixtures) that have ceased to be waste Articles containing recycled material/substances/mixtures do fall under the scope of REACH (registration, authorisation, restrictions) Interface between REACH and waste legislation containing restrictions on the use of certain substances (in particular RoHS and ELVs directives)

REACH's contribution to recycling Materials that cease to be waste must be registered: unless benefiting from the exemption in Art 2(7)(d) of REACH Information on exposure to substances at the waste stage must be given as part of REACH registration Substances in materials that cease to be waste may need to apply for authorisation Substances may be subject to EU restriction which prohibit the use of those substances in both virgin materials and materials that cease to be waste. Objective: Level playing field between primary and secondary raw materials

Chemicals and circular economy Chemicals priorities for a circular economy Promotion of non-toxic material cycles Tracking of substances of concern in products. Objectives To facilitate good quality recycling in the Union To improve the uptake of secondary raw materials To address the presence of substances of concern To limit unnecessary burden for recyclers To facilitate traceability and risk management of chemicals.

Chemical, product, waste interface Commitment in the Circular Economy Action Plan to analyse the interface and develop policy options The options that will be developed, based on the analysis: May result in specific legislative actions; May also inform other relevant actions announced in the Circular Economy Action Plan, including the development of quality standards for secondary raw materials and the strategy on plastics in the circular economy; Will feed into the future EU strategy for a nontoxic environment.

Issues identified by the Commission Insufficient information about substances of concern in products and waste Dealing with the presence of substances of concern in recycled materials Uncertainties about how materials can cease to be waste Difficulties in the application of EU waste classification methodologies and impacts on the recyclability of materials

Next steps Roadmap published on 27/01/17 Targeted Stakeholder Consultation until 07/07/17 Policy Options to be developed by the Commission in 2017: Communication to bee published Future legislative actions evaluated through an impact assessment in 2018 REACH REFIT evaluation and fitness check on chemicals legislation will provide further elements to be considered Non-toxic environment strategy

Background REFIT Communication of 2013: Fitness Check on the most relevant chemicals legislation (other than REACH) as well as related aspects of legislation applied to downstream industries Covering > 40 pieces of chemicals and chemicals-related legislation (excluding REACH) with three general objectives: health/environment, single market, competitiveness/innovation Roadmap published in May 2016 Focus on the risk management process of chemicals Improve delivery, remove red tape and lower costs Staff Working document, Communication (TBD), spring/summer 2018

Risk management approaches Hazard identification & classification Risk Assessment Processes 'Generic' risk considerations Risk Management Measures (RMMs) 'Specific' risk assessment

Risk management approaches Based on specific risk assessment Assessing both the hazards and the potential specific exposure scenarios of humans and the environment to the substance or mixture in question at the same time Based on generic risk considerations Automatically triggered based on the outcome of a hazard identification / classification Possible exposure scenarios considered generically at the level of the legislation in question Used in EU legislation in particular for hazard classes of greatest concern and a high likelihood of exposure

DG Environment study on the non-toxic environment strategy of the 7 th EAP Finalised in August 2017, published at: http://ec.europa.eu/environment/chemicals/non-toxic/index_en.htm Main report (overall aspects and conclusions) Seven sub-studies a. Substitution, including grouping of chemicals and measures to support substitution b. Chemicals in products and non-toxic material cycles c. The improved protection of children and vulnerable groups from harmful exposure to chemicals d. Sub-strategy for very persistent chemicals e. Policy Means, Innovation and Competitiveness f. A Green Chemicals Program g. The creation of a joint early warning system for approaching chemical threats to health and the environment

The non-toxic environment study: findings overall gaps/weaknesses in current policy Current chemicals legal framework has delivered a lot of work remains Slow progress in SVHC identification and in substitution Lack of knowledge/information/attention on chemicals in articles, in material flows (circular economy) Insufficient protection of children and vulnerable groups Insufficient means to address persistent chemicals Lack of monitoring of chemicals in environment/human body, e.g. drinking water Better incentives to develop new non/less toxic chemicals and non-chemical solutions Need for more focused compilation of data an EU early warning system

The non-toxic environment study: Some themes in the way forward 1. Long term development of chemicals knowledge bases (properties, uses, presence, exposure) 2. Develop EU early warning system for chemical threats 3. Move from chemical-by-chemical to grouping approaches 4. Promote innovation of non/low toxic chemicals and nonchemical solutions 5. Promote a non-toxic circular economy: chemicals and materials better adapted to recyclability 6. Support substitution: provide knowledge, tools and platforms 7. Address very persistent chemicals (rules, tests, knowledge) 8. Establish a use hierarchy for hazardous chemicals (avoidance, minimisation, control, disposal/destruction) 9. Establish system(s) for tacking of chemicals in products 10. Approach/framework for protection of children and vulnerable groups

Suggested chemicals use hierarchy

Thank you for your attention SYLVAIN BINTEIN European Commission Directorate General Environment Sustainable Chemicals http://ec.europa.eu/environment/chemicals Sylvain.bintein@ec.europa.eu Environment