How much will REACH cost?
Testing and registration costs for producers and importers of chemicals:
The Commission’s Impact Assessment in 2003 estimated the direct costs of REACH to the chemicals industry at a total of some €2.3 billion over an 11 year period. The changes in the proposal since then have further reduced the administrative and cost burden for companies, in particular for the substances supplied in lower volumes and for SMEs. However, the cost of the Agency increased significantly because the Council and Parliament have added substantial new responsibilities, in particular that of ensuring a harmonised approach to the evaluation of registration dossiers. However, these additional Agency costs should be seen in the context of from tasks being shifted from the competent authorities of the Member States to the Agency.
Costs to downstream users:
The costs to downstream users of chemicals were estimated in the Commission’s Impact Assessment of 2003 at €0.5 to 1.3 billion, under the assumption that 1 to 2 % of the substances would be withdrawn because continued production would no longer be profitable. Costs could rise to €1.7 – 2.9 billion when industry would face higher substitution costs in the downstream supply chains.
Total costs:
Consequently, the overall costs of the Commission’s proposal of 2003 to the chemicals industry and its downstream users were estimated to be in the range of €2.8 - 5.2 billion. From a macroeconomic perspective, the overall impact in terms of a reduction in the EU’s Gross Domestic Product (GDP) was predicted to be very limited. The changes introduced in REACH by the Parliament and the Council in the co-decision process have not changed this overall picture significantly. The cost-efficiency of the proposal has been further increased as the registration requirements for low volume substances with no hazard indication have been reduced, whereas the requirements for authorisation have been strengthened. This will contribute to a marked improvement in health and environment protection while safeguarding the competitiveness of industry.
