REACH is a disaster for the biodiesel industry

The worst fears seem to be confirmed as the result of a hearing in the European Parliament on 3 November 2009. The Committee concludes that the European Chemicals Agency (ECHA) responsible for the registration of chemicals under the European Chemicals Directive (REACH) is utterly unable to handle the situation and is grossly understaffed.

Meanwhile they are even talking of an emergency plan in order to cope with the spade of applications which, according to ECHA Director General Geerd Dancet, is higher than expected by factor 20.

The Arbeitsgemeinschaft Qualitätsmanagement Biodiesel e.V. (AGQM) formed a REACH Consortium with over 50 member firms with the aim of meeting the deadline set for the proper registration of chemicals, on the one hand, and sharing costs justly, on the other hand. The group has worked intensively for the last 20 months to ensure compliance with the requirements of REACH registration, starting with the pre-registration as a condition for continuing production and marketing and finally now the main registration.

As it is, the REACH procedure turned out to be a cost-driving obligation for all companies and increasingly it is a substantial burden on small and medium-size firms. Considering the fact that the time allowed for registration is limited to the end of 2010, this cost burden turns out to be another existential threat. All biodiesel producers are facing a difficult financial situation in which they must pay the extra costs from earnings within the time limit set.

The AGQM takes the occasion to recall the agreement in the coalition negotiations that the new German government would take immediate action in the interest of lowering the fees charged for the REACH registration. The AGQM also demands that the time for registration be extended at least by two years until the end of 2013.

The AGQM points out that the available laboratory capacity for preparing the required studies, notably toxicological studies, is limited, as is the number of experts available. This is not only an additional cost driver but there is also the risk that the studies may not be available in time.

In view of the above, the AGQM demands that the ECHA staff be increased quickly for a limited time to cope with the forthcoming spade of applications and the time limit be extended until the end of 2013. To avoid excessive overhead, ECHA should reduce staffing to a reasonable level at the end of the registration procedure to ensure that normal routine work can be coped with.

In view of this disaster, the AGQM hopes that as a result of the hearing before the Environment Committee of the European Parliament and on the initiative of the German government the EU Commission will take action to amend the REACH directive as required without delay.