A proposed EU law for the registration of chemicals in the EU, known as REACH, will not have a significant impact on business costs or competitiveness in Europe, according to a new study by KPMG and paid for by the European employers’ association UNICE and chemical industry association CEFIC.

The chemicals industry has been claiming that the European Commission’s proposals risked killing off Europe’s chemical industry. Yet the study found there would be no withdrawal of important chemicals due to registration costs which would be largely passed on or absorbed by the supply chain. Product reformulations are unlikely and there would be limited diversion of R&D spending, says the study. It pinpointed one potential loss of non-important substances found at one chemical importer (a sales office importing Chinese-produced chemicals).

“No matter how hard it tries, industry cannot demonstrate that REACH is bad for business” said Tony Long, director of WWF’s European Policy office. “The study does not even show a problem for small businesses. Only the contrary, better chemical regulation should create new markets for safer chemicals. In addition, the environmental and health benefits of REACH will be extensive.”

A second study, carried out by the European Commission’s Joint Research Centre (JRC) and Institute for Prospective Technological Studies (ITPS) on the impact of REACH on New Member States, concluded “The cost impacts on the individual companies remain moderate, even under the assumption of worst case effects.”

The European Environmental Bureau believes the chemical industry suffers from a lack of public trust due to the absence of safety information about chemicals in everyday use – which also frustrates manufacturers and retailers of products using chemicals. It suggests that REACH should offer much improved safety information and the substitution of the most harmful chemicals with safer alternatives.

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