Business Effects of REACH Cry Wolf

A great deal of controversy surrounds the business effects of REACH. Environmental NGO argue that the chemical industry is crying wolf over the potential negative effects that the regulation will have on EU businesses [283]. NGO support this assertion with the fact that the cost estimates for implementing the current REACH proposals represent only about 0.05 % of the annual turnover of the EU chemical industry (about 400 billion) [283]. The costs to downstream chemical users represent 1% of their total turnover of around 425 billion [283]. 

The predicted costs and benefits of the legislation vary to such an 

To promote international competitiveness of the EU chemical industry and encourage innovation, the REACH proposal  

59 Because this business impact assessment covered large chemical companies, it was assumed that companies have most data already available for registration. Therefore costs may be significantly more, especially for SME [288]. 

One study often quoted by environmental groups, conducted by Nordbeck and Faust (2002), argues that chemical regulation provides impetus to innovation60. It also stipulates, as does the European Commission, that the decreased requirements in EU legislation for low tonnage substances, R D and PPORD exemptions compared with the current system for new substances will promote innovation, but this argument is flawed  

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