Reuters AlertNet Lite - FACTBOX-EU chemicals law "REACH"

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FACTBOX-EU chemicals law "REACH"

13 Dec 2006 11:05:29 GMT
Source: Reuters

Dec 13 (Reuters) - The European Parliament votes on a wide-ranging chemical reform bill on Wednesday that is meant to increase the amount of information policymakers have about the chemicals people use on a daily basis.

The bill, designed to protect human health and the environment, has pitted industry against consumer activists for years. It is now slated to go into force on June 1, 2007.

Following are 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.

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 agency. A series of tests is required to provide that information, varying according to the volume of the substances in question.

*Chemicals of "very high concern" such as those that can cause cancer, damage genes or affect 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.

WHAT CHANGES HAVE BEEN MADE?

*Under a compromise deal between lawmakers and EU ministers, the bill requires companies seeking authorisation for dangerous chemicals to submit a substitution plan with a timetable for switching to safer substances when alternatives are available.

If the companies demonstrate that the dangerous substances can be adequately controlled, however, they will be approved.

*Both the European Parliament and council of ministers reduced the number of substances in the low-tonnage category that would require tests last year.

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.

WHAT ARE THE COSTS AND BENEFITS OF REACH?

*The European Commission originally forecast REACH would cost the chemical industry 2.3 billion euros ($3 billion) 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.

HOW BIG IS THE EUROPEAN CHEMICALS SECTOR?

*According to industry group CEFIC, the EU's chemicals industry had sales of 586 billion euros 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.

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Last updated:Wed Dec 13 11:06:59 2006