The Council of the European Union has formally endorsed a new 'essential use' concept for managing hazardous chemicals, aiming to accelerate the phase-out of the most harmful substances in non-essential applications while permitting their continued use only where critically justified. The decision, adopted at a meeting on 27 May 2024, provides guiding criteria and principles for future legislation, directly impacting EU chemical producers, downstream users, and regulatory bodies.

The meeting document outlines the Council's position on the essential use concept, a key element of the Chemicals Strategy for Sustainability under the European Green Deal. The concept defines a use as essential only if it is necessary for health, safety, or critical for society's functioning and there are no acceptable alternatives. This framework is intended to guide future regulatory decisions, replacing blanket bans with a more nuanced approach that balances environmental protection with societal needs.

Policy orientations and trade-offs The Council's endorsement reflects a compromise between accelerating the green transition and maintaining industrial competitiveness. The essential use concept is designed to push innovation towards safer alternatives while avoiding disproportionate economic disruption. However, the criteria are not legally binding but serve as a guiding principle for future legislation, leaving room for sector-specific adaptations. This creates a cleavage between environmental NGOs, who advocate for stricter phase-outs, and industry groups, who warn of potential supply chain disruptions and increased costs.

Impact on stakeholders EU chemical producers face pressure to innovate and substitute hazardous substances, potentially increasing R&D costs but also opening markets for safer alternatives. Downstream users, such as electronics and automotive sectors, may face compliance challenges and higher input costs if essential uses are narrowly defined. EU regulatory bodies, including ECHA and the Commission, will need to develop detailed guidance and criteria for assessing essentiality, requiring additional resources. Environmental NGOs welcome the concept but may push for stricter implementation to avoid loopholes.

Institutional follow-up The Council's endorsement sets the stage for the European Commission to propose legislative measures incorporating the essential use concept, likely in upcoming revisions of REACH and other chemicals regulations. The European Parliament will also have a say in the co-decision process, where debates over the stringency of criteria are expected.

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