REACH authorisation: many benefits despite significant costs
According to ECHA's latest study on the socio-economic impact of REACH, the cost to business is estimated at around �2.5 billion per year since REACH came into force. This cost is significant for companies, but REACH authorisation has had many positive effects.
Indeed, the potential benefit for human health and the environment is in the order of �100 billion over 25-30 years. The cost to companies is proven and immediate, while the avoided costs are only assumed and can be verified over time.
For example, the restriction on chromium VI has prevented serious skin allergies in 1.3 million people in Europe, which represents not only medical care but also production losses, corresponding to a total avoided cost of �2.2 billion per year according to the Economic, Social and Environmental Council (EESC).
It is therefore essential for companies to take a responsible approach and be aware of the issues involved in the long-term use of chemical substances.
Towards the elimination of substances of concern
The obligation to obtain an authorisation, with the conditions recommended by ECHA, has allowed companies to move away from certain Substances of Very High Concern (SVHC) for human and environmental health.
Out of 54 chemical substances covered by the authorisation, the use of almost half of them has completely ceased in Europe. Moreover, the review of existing authorisations has shown that even where substances have continued to be used, their use has been reduced by 97% in terms of volume. In its study on the socio-economic impacts of REACH, ECHA also predicts a decrease of more than 90% in emissions of nonylphenols and octylphenols, the endocrine disrupters, over the next 12 years.
Where substitution is not yet possible, the study estimates that the societal benefit of authorisation is almost 20 times greater than the health risks. Benefits here are defined as the availability of products and services and the preservation of businesses and jobs in Europe. All this remains a significant factor in the evaluation of substances.
Under REACH, the authorisation of hazardous chemicals and the restriction of their placing on the market are two powerful instruments for managing chemical risk. For ECHA, this authorisation process is essential to ensure the protection of health and the environment, while at the same time ensuring that companies remain competitive.
The future of REACH
Since it was implemented, the REACH regulation has aimed at ensuring that the risk generated by chemical substances is well controlled and that the most dangerous of them are gradually replaced by substitutes that are not only safer, but also economically and technically viable for companies. REACH affects companies in many sectors, including those not directly affected by chemicals.
The ECHA study published this month based its research on information from 2010 to 2020. 2010 marks the start of the REACH Authorisation process. The expected benefits of REACH authorisation since the beginning of its implementation are as follows:
- An improvement in the health of workers and consumers as well as the protection of the environment.
- A better knowledge of the properties of chemical substances.
- A better communication of information in the supply chain, thus a safer use of substances.
- Restoring confidence in chemicals.
- Promoting innovation.
- Ensuring the free movement of substances within the European Union.
The European Commission has found that diseases caused by exposure to dangerous substances still claim the lives of 100 000 workers every year. ECHA has already announced that it does not want to stop at this positive assessment but wants to continue its improvements.
Wish to know more about the REACH Authorisation process?
For more information, do not hesitate to contact Fang Zhou or one of our experts!
REACH authorisation: many benefits despite significant costs
According to ECHA's latest study on the socio-economic impact of REACH, the cost to business is estimated at around �2.5 billion per year since REACH came into force. This cost is significant for companies, but REACH authorisation has had many positive effects.
Indeed, the potential benefit for human health and the environment is in the order of �100 billion over 25-30 years. The cost to companies is proven and immediate, while the avoided costs are only assumed and can be verified over time.
For example, the restriction on chromium VI has prevented serious skin allergies in 1.3 million people in Europe, which represents not only medical care but also production losses, corresponding to a total avoided cost of �2.2 billion per year according to the Economic, Social and Environmental Council (EESC).
It is therefore essential for companies to take a responsible approach and be aware of the issues involved in the long-term use of chemical substances.
Towards the elimination of substances of concern
The obligation to obtain an authorisation, with the conditions recommended by ECHA, has allowed companies to move away from certain Substances of Very High Concern (SVHC) for human and environmental health.
Out of 54 chemical substances covered by the authorisation, the use of almost half of them has completely ceased in Europe. Moreover, the review of existing authorisations has shown that even where substances have continued to be used, their use has been reduced by 97% in terms of volume. In its study on the socio-economic impacts of REACH, ECHA also predicts a decrease of more than 90% in emissions of nonylphenols and octylphenols, the endocrine disrupters, over the next 12 years.
Where substitution is not yet possible, the study estimates that the societal benefit of authorisation is almost 20 times greater than the health risks. Benefits here are defined as the availability of products and services and the preservation of businesses and jobs in Europe. All this remains a significant factor in the evaluation of substances.
Under REACH, the authorisation of hazardous chemicals and the restriction of their placing on the market are two powerful instruments for managing chemical risk. For ECHA, this authorisation process is essential to ensure the protection of health and the environment, while at the same time ensuring that companies remain competitive.
The future of REACH
Since it was implemented, the REACH regulation has aimed at ensuring that the risk generated by chemical substances is well controlled and that the most dangerous of them are gradually replaced by substitutes that are not only safer, but also economically and technically viable for companies. REACH affects companies in many sectors, including those not directly affected by chemicals.
The ECHA study published this month based its research on information from 2010 to 2020. 2010 marks the start of the REACH Authorisation process. The expected benefits of REACH authorisation since the beginning of its implementation are as follows:
- An improvement in the health of workers and consumers as well as the protection of the environment.
- A better knowledge of the properties of chemical substances.
- A better communication of information in the supply chain, thus a safer use of substances.
- Restoring confidence in chemicals.
- Promoting innovation.
- Ensuring the free movement of substances within the European Union.
The European Commission has found that diseases caused by exposure to dangerous substances still claim the lives of 100 000 workers every year. ECHA has already announced that it does not want to stop at this positive assessment but wants to continue its improvements.
Wish to know more about the REACH Authorisation process?
For more information, do not hesitate to contact Fang Zhou or one of our experts!
