The European chemical industry is under considerable pressure. High energy prices, global overcapacity and ageing facilities are placing a heavy burden on companies. Against this backdrop, one key question is coming increasingly to the fore:
Where is European chemicals policy heading – and what will it mean for the industry?
The signals from policymakers point to a change of course. Instead of another wave of regulation, the focus is increasingly shifting towards competitiveness, effective enforcement and digital oversight.
What’s New on the Regulatory Front?
- Relief on REACH: A comprehensive revision of the REACH Regulation is off the table for the foreseeable future. Instead, the European Commission is focusing on targeted adjustments and measures to reduce the burden on industry – including initiatives such as the Critical Chemicals Act and the Industrial Accelerator Act.
- New rules for CLP and labelling: The reform introduces a number of practical changes. In future, labels will be permitted to include a “digital contact”, such as an email address. Binding minimum font sizes will also apply depending on packaging size. Following a reclassification, companies will have 15 months to update their labels.
- The Digital Product Passport is coming: Detergents and cleaning products will be among the first product groups affected by the Digital Product Passport. Product information is expected to become accessible via a QR code on the packaging. The industry is still discussing the details, particularly to prevent unnecessary packaging requirements and additional costs.
- PFAS and hazardous substances in focus: Rather than blanket bans, the emphasis is shifting towards targeted emissions controls at the main sources – for example, in PFAS polymer systems. Further specific procedures are underway for substances including lead in ammunition, creosote and CMR substances in childcare products.
- An end to duplicate assessments: The interaction between chemicals legislation and the new Ecodesign Regulation is also being clarified. The aim is to improve recyclability and close regulatory gaps without duplicating requirements that are already covered by REACH.
Which Direction Is Policy Heading?
Three themes are emerging as the common thread running through future chemicals policy: enforcement, digitalisation and fair competition.
- Tougher market surveillance
New rules are of little use if they are not enforced. Current inspections paint an alarming picture: for small consignments and imports from third countries – including toys and electronics – more than 80% of products in some inspections have been found to violate limit values or documentation requirements. The focus is therefore shifting: away from ever more legislation and towards the consistent enforcement of existing rules. - Online retail under scrutiny
The flood of cheap small consignments from the Far East is posing growing challenges for authorities and customs agencies. Customs exemptions are to be abolished, while online platforms will face greater responsibilities. In cases of systematic violations, measures could even extend to blocking platforms. Market surveillance is thus increasingly becoming a tool of competition policy: European manufacturers should no longer face strict regulatory requirements while suppliers from third countries operate largely outside the European enforcement system. - Greater practicality through digitalisation and alternatives
At the same time, policymakers are seeking to offset the growing administrative burden through digital solutions. Alternative substances are also to be promoted more systematically. In the field of animal testing, new platforms and revised data requirements are intended to accelerate the adoption of alternative testing methods.
Conclusion
The EU does not appear intent on tightening the fundamental rules at every opportunity. Instead, the focus is shifting: existing rules are to be enforced more consistently, monitored digitally and applied effectively to imports and online markets as well. For the European chemical industry, this change of course could provide some welcome relief. Simply reducing new regulation, however, will not be enough. The crucial question will be whether competitive conditions can actually be levelled between European manufacturers and suppliers from outside the EU. For domestic manufacturers, the hope is therefore clear: less new bureaucracy – and, finally, more fair competition.