Transcript Slide 1

Emerging regulations and
implications for the vinyl industry
H. Leitner and A. Sevenster
Fourth Andean Conference on PVC and Sustainability
Bogota, Colombia, September 28, 2010
Contents
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CO2 trading scheme in the EU
REACH
RoHS Directive in the EU and elsewhere
Waste management
● Eco-label, public procurement
European Trading Scheme (ETS)
Objectives: Reduction by 20% of CO2 emissions
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The ETS Legislation covers CO2 emissions from energy-intensive
industrial sectors
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Phase I (2005 –2007) was a test period with nearly all emission
allowances allocated for free.
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Phase II (2008 –2012) introduced additional greenhouse
gases, installations and activities
Revised ETS introduced many changes, as part of Phase III (post
2012)
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New sectors covered, including “Production of bulk organic
chemicals (…) with a production capacity exceeding 100
tonnes per day”
ETS Free CO2 emission allowances for which sectors?
● It is recognised that certain industries run the risk of losing market to
regions with less or no CO2-tax (“carbon leakage”)
● Free allowances
– Sectors exposed to significant risk of carbon leakage: 100% of
benchmark from 2013 till 2020
– Non-exposed sectors: 80% of benchmark in 2013 progressively
reduced to 30% in 2020
– Power sector: No free allowances => full auctioning , ie pay the
price
ECVM benchmarking – EDC and VCM
Contents
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CO2 trading scheme
REACH
RoHS Directive in the EU and elsewhere
Waste management
Eco-label, public procurement
What`s behind REACH?
● REACH is EU Regulation 1907/2006/EC
– Regulation on the Registration, Evaluation, Authorisation and
Restriction of Chemical Substances (REACH)
● REACH stipulates that all chemical substances placed on the EU
market must be registered.
– Exemptions: pesticides, food, pharmaceuticals, radioactive
substances, waste
● REACH also regulates the information exchange through the value
chain, the authorisation and/or restriction of some substances
● REACH came into force on 1.6.2007
REACH is substance-oriented
Substances
Mixtures (of
substances)
Articles with
substances
Substances
intentionally
released
Duties:
Registration, evaluation, authorisation,
restrictions, information requirements for
supply chain
Article
contains
substances
of very high
concern
Notification,
authorisation,
restrictions,
information requ.
REACH: Registration
● Deadline for registering substances
> 1000 t/year or CMR > 1 t/year : 30 November 2010
Further deadlines: 2013 for substances > 100 t/year
2018 for those > 1 t/year
● Vinyl Chloride Monomer
- Registration by Consortium supported by ECVM
– 24 members: ECVM + Dow Europe + EU representatives of
some companies manufacturing PVC outside the EU
– About 75 potential registrants outside the Consortium
● Expected to purchase Letters of Access to the file prepared
by the Consortium
– VCM was registered by the “Lead Registrant” Ineos Vinyls late
July 2010
● Like most polymers, PVC is not required to be registered as such
● Phthalates DINP and DIDP registered in March 2010
REACH: Authorisation and restriction issues relevant
for PVC
● Authorisation applies to Substances of Very High Concern (SVHC),
essentially
– CMR (Carcinogenic, Mutagenic or toxic for reproduction)
– PBT (Persistent, Bio-accumulative and Toxic)
● Some SVHC selected in a ‘candidate list’ will be subject to
authorisation
– Use after a certain “sunset date” will require authorisation
– Authorisations are granted for specific uses of SVHC and are
subject to a time-limited review
REACH: Authorisation and restriction issues relevant
for PVC
● DEHP, BBP, DIBP and DBP, as well as SCCP and lead chromate
are among the 24 substances so far nominated to go forward for
authorisation (“Candidate list”)
● VCM use as “intermediate” to manufacture PVC is not subject to
authorisation
● Restrictions apply already to marketing and use of PVC additives
based on cadmium and tin, on lead in paints, etc
Will other countries adopt legislations similar to
REACH?
● Helsinki Chemical Forum (May 2010)
– REACH expected to lead to further convergence of global
regulations, according to speakers at the Helsinki Chemicals
Forum.
– “Development of a global system would take decades.
Convergence in legislation covering chemical risk assessment
and management is likely to take place in developed countries
and the emerging economies of Brazil, Russia, India and China,
but the process would take much longer in developing countries”
Will other countries adopt legislations similar to
REACH?
● Canada
– Agreement in May 2010 between the European Chemical Agency ECHA
and Environment Canada to collaborate and share information regarding
chemicals regulation
– The Head of ECHA said that the Canadian government’s legislation on
chemicals is broadly similar to REACH
● USA
– ECHA is also discussing an information sharing agreement with the US,
where the EPA is seeking a reform of the US Toxic Substances Control Act
(TSCA).
● China
– A Chemical New Chemical Regulation will enter into force on 15 October
2010, requiring
● risk management for new chemicals based on hazard and exposure
● classification into general new chemicals or hazardous new chemicals
● tonnage-based notification. Principle: ‘higher volume, more data’.
Global Product Strategy (GPS) –
Industry’s global contribution to SAICM
Global Product Strategy (GPS)
 Regulatory initiatives 
• EU REACH
• US TSCA
• US ChAMP
• Canadian CMP
• Japan CSRs
• GHS
• etc.
Voluntary initiatives  Cooperation
• Responsible Care
• UNEP
• ICCA HPV
• UNIDO
• Base Set of Information
• OECD
• OECD / SIDS
• NGOs
• LRI
• ICCA internal
• etc.
• etc..
Globally consistent approach that accommodates
national, historical, cultural and regulatory differences
SAICM = Strategic Approach to International Chemicals Management
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Contents
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CO2 trading scheme in the EU
REACH
RoHS Directive in the EU and elsewhere
Waste management
● Eco-label, public procurement
Background about the EU RoHS Legislation
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RoHS = Restriction of the use of certain Hazardous
Substances in electrical and electronic equipment
(Directive 2002/95/EC)
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Objective: Reduce waste management problems linked
to heavy metals and flame retardants present in Waste
electrical and electronic equipment, especially risks to
health or the environment.
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Substances banned in the current RoHS (Annex IV):
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Hg, Pb, Cd & Cr(VI)
Polybrominated biphenyls
Polybrominated diphenyl esters (Penta-, Octa- & DecaBDE)
Procedure for EU Directives
European Commission
Proposes legislation
European Parliament discussion
Elected by EU population
from political groups
European Council discussion
Representatives of Member States
Ministries
Proposes amendments to Commission
text
Votes in Committee & Plenary
Adoption of « Common Position »
Need for agreement between Council
& Parliament for legislation to be adopted.
RoHS revision
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Studies in 2007 – 2008, including one by Öko Institut
– Proposed banning 8 substances (or groups), including DEHP,
BBP, DBP and PVC
– Öko Institut itself concedes that “there can be no robust
recommendation as to the need to restrict the use of substances
according to the present state of knowledge…”
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The European Commission issued a proposal in December 2008
– No new substances added in Annex IV (banned substances)
– New Annex III of substances for priority review:
- HBCDD
- DEHP
- BBP
- DBP
Commission proposal is reviewed by the European Parliament &
European Council who have to agree
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RoHS revision: Latest developments and next steps
● 2-3 June 2010: vote in ENVI Committee of the Parliament
– No change in Annex IV (banned substances)
– MEPs adopted inclusion of many new substances in Annex III
(“Priority substances”)
● The Commission proposal foresaw 4 priority substances
● The ENVI Committee extended the list to almost 40 substances,
including PVC !
● Council of environment ministers
– Disagreement over Annex III
● Some countries oppose such a list, because no clear
methodology for deciding on substances
● Others support the list
– Member states will try to reach an agreement latest by 14 October
● Plenary vote in Parliament scheduled in October 2010
RoHS clones
● INDIA: Proposed E-waste (Management and Handling) Rules, 2010
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Chapter V, Rule 15 “Reduction in the use of hazardous materials in the manufacture of
electrical and electronic equipment”
● Required compliance with threshold limits as prescribed in Schedule III, to be achieved
within 3 years
Schedule III “Threshold limits for use of certain hazardous substances”, Number 18 (PVC)
● Substance risk: “As with any material containing chlorine, potential for forming dioxins
and furans in case of uncontrolled burning. Liberation of HCL gas during combustion.
Recent health/ environmental concerns have been raised about some additives used in
PVC processing i.e. Heavy metals used as stabilizers and Phthalate plasticizers,
although these have been used for more than 40 years without any measurable impact
on health and environment.
● No threshold limit mentioned
● China
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In October 2009, the Ministry of Industry and Information Technology (MIIT) released its
initial list of products subject to lead, cadmium, hexavalent chromium, mercury,
polybrominated biphenyls (PBBs) and polybrominated diphenyl ether (PBDE) restrictions
● What about South America?
Contents
● CO2 trading scheme in the EU
● REACH
● Recast of the Restriction of Hazardous
Substances (RoHS) Directive
● Waste management
● Eco-label, public procurement
EU Waste Legislation
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Framework legislation
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Waste treatment operations
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Waste incineration Directive 2000/76/EC
Landfill Directive 99/31/EC
Specific waste streams, e.g.
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Waste Framework Directive (WFD) 2008/98/EC, including former Hazardous
Waste Directive
Waste shipment
Packaging and Packaging Waste (PPW) Directive 2004/12/EC
End of Life Vehicles (ELV) Directive 2000/53/EC
Waste Electrical and Electronic Equipment (WEEE) Directive 2002/96/EC
Batteries and Accumulators 2006/66/EC
Mining waste, sewage sludge, etc..
Revised WFD published in November 2008
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Mandatory recycling targets set for household and construction waste
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By 2020, Member States must recycle a minimum of 50% by weight of household
waste
By 2020, Member States must recycle a minimum of 70% by weight of non-hazardous
construction and demolition waste
Reaching 50% will be a major challenge to a number of EU Member
States
Waste Legislation Worldwide
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Far too complex …
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Extensive legislation in the EU and Japan
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USA? South America?
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E&E waste regulated in many countries
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Basel Convention on the Control of Transboundary Movements of
Hazardous Wastes and Their Disposal
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Into force since 1992
173 countries have signed
Conditions on import and export of hazardous waste
Contents
● CO2 trading scheme in the EU
● REACH
● Recast of the Restriction of Hazardous Substances
(RoHS) Directive
● Waste management
● Eco-label, public procurement
Recent developments in eco-labels
● New EU eco-label Regulation
– Regulation (EC) No 66/2010 on the EU Ecolabel
● Higher environmental standards for products and services
carrying the Flower label. For example, products containing
substances that are carcinogenic, mutagenic or toxic for
reproduction should not bear the EU label.
● The European Commission aims to increase the number of product
groups covered by the scheme to between 40 and 50 by 2015
– The scheme currently applies to 26 categories, developed since
1992, ranging from cleaning products to textiles.
● Key concern: Link with public procurement
Globalisation of eco-labels
● UNEP project : Enabling developing countries to seize ecolabel
opportunities
– Global Ecolabelling Network (GEN)
– Ecolabelling projects of UNEP
● Projects on footwear, textile, television appliances and paper are
going on in major economies like China, India (textiles), Mexico
(footwear), Brazil and South Africa. The EU ecolabel for footwear
is the basis for the project in Mexico.
● Projects on footwear are also set up in Kenya and Ethiopia.
– More info at :
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[email protected]
http://www.globalecolabelling.net/
http://www.uneptie.org/scp/events/details.asp?id=529
http://www.cuts-international.org/documents/Projects@_Glance_September_2009.doc
represents the European PVC resin producing companies
and is a division of PlasticsEurope. Its membership includes the 13
European PVC resin producers which together account for 100 % of EU
27
production. ECVM is also a leading partner of Vinyl 2010 - the
organisation implementing the Voluntary Commitment of the PVC
Industry - together
with ESPA - representing the stabiliser producers, ECPI - representing
the plasticiser producers and EuPC - representing the PVC converters.