ADVERTISEMENT
2 /3 FREE ARTICLES LEFT THIS MONTH Remaining
Chemistry matters. Join us to get the news you need.

If you have an ACS member number, please enter it here so we can link this account to your membership. (optional)

ACS values your privacy. By submitting your information, you are gaining access to C&EN and subscribing to our weekly newsletter. We use the information you provide to make your reading experience better, and we will never sell your data to third party members.

ENJOY UNLIMITED ACCES TO C&EN

Business

EU laws cost chemical sector $12 billion per year

by Alex Scott
July 25, 2016 | APPEARED IN VOLUME 94, ISSUE 30

The European chemical sector paid out more than $12 billion annually between 2004 and 2014 to comply with European Union regulations, according to a study by the consulting firm Technopolis for the European Commission. The costs are equivalent to an average of 2% of sales, 12% of value added, or 30% of profits. The findings were based on a group of 31 chemical companies. More than two-thirds of the costs were from energy and environment laws and included the EU’s Emissions Trading Scheme and the Registration, Evaluation, Authorisation & Restriction of Chemicals (REACH) program. Costs affected subsectors in various ways. Producers of pesticides and agrochemicals were worst hit, with 23% of the value that the sector added wiped out by compliance costs. This was followed by 17% for producers of specialty chemicals, 12% for those making inorganic basic chemicals, and 11% for producers of soaps and detergents. Costs associated with REACH, energy, and biocide regulations are expected to rise in the coming years.

X

Article:

This article has been sent to the following recipient:

Leave A Comment

*Required to comment