2024 in Review: A Transformative Year for Chemical Regulatory Compliance and Sustainability

  • December 19, 2024
  • Reachlaw Marketing

2024 has been a pivotal year for the chemical industry, with significant regulatory developments shaping the global landscape. From sustainability mandates to evolving regulatory compliance frameworks, these changes have introduced new challenges and opportunities. As we close the year, we look back on key regulatory milestones and the profound impact they have on businesses across the industry. With many of these changes already in effect or approaching, it is crucial for companies to stay ahead of the curve to remain competitive and compliant.

2024 Key Regulatory Developments and What Lies Ahead For 2025

In the EU

Chemical Safety and the Chemicals Strategy for Sustainability (CSS)

The EU Chemicals Strategy for Sustainability (CSS), introduced under the EU’s Green Deal, aims to achieve a “toxic-free” environment by restricting hazardous chemicals and promoting safer, sustainable alternatives. This strategy seeks to enhance the safety and sustainability of chemicals across various sectors. The European Chemicals Agency (ECHA), envisioned by the European Commission as the key entity driving these efforts, has made the CSS a cornerstone of its 2024–2028 strategic agenda. Early examples of this integrated regulatory approach include broad restriction proposals targeting PFAS and Chromium VI. Meanwhile, the European Commission is advancing complementary initiatives, such as defining Essential Uses and establishing Safe and Sustainable by Design criteria, to foster innovation and safeguard specific substances and applications aligned with a toxic-free vision.

Impact: The forthcoming REACH Revision will expand ECHA’s authority, accelerating regulatory processes to facilitate this transformation. While ECHA and Member States already wield significant regulatory power, chemical manufacturers and downstream users should proactively evaluate their portfolios and practices against CSS’s objectives. Leveraging professional external support can provide a comprehensive, unbiased perspective, enabling companies to navigate this evolving landscape more efficiently and align strategically with regulatory expectations. In addition, and with the new EU Commission prioritizing streamlined decision-making with updated working methods, and due to launch of a Chemicals Industry Package within 100 days under the European Council Strategic Agenda (2024-2029), trade associations must act early to align their strategies and amplify their voice in Brussels.

PFAS Restriction Proposal in the EU – Updates

On the 20th of November 2024, The European Chemicals Agency (ECHA), together with authorities from Denmark, Germany, the Netherlands, Norway, and Sweden, has updated progress on restricting per- and polyfluoroalkyl substances (PFAS). Over 5,600 comments from the 2023 public consultation have helped refine the proposal, identify additional uses, and expand sector assessments to include areas like sealing applications, technical textiles, printing, and pharmaceutical packaging.

Evaluation of alternatives to a full ban or a ban with time-limited derogations are taking place. These options could allow conditional use of PFAS in sectors like batteries, fuel cells, and electrolysers to avoid disproportionate socio-economic impacts. The updated findings are guiding ongoing evaluations by ECHA’s scientific committees: RAC and SEAC.

Impact: The development of RAC and SEAC opinions is key to shaping PFAS restrictions in Europe. Collaborative efforts by ECHA and the Dossier Submitters have advanced evaluations and raised awareness of PFAS risks across industries. In 2025, the RAC opinion and SEAC draft opinion will be further prepared, followed by a targeted consultation on the SEAC draft opinion to gather socio-economic insights from stakeholders. These inputs will ensure balanced recommendations, enabling the European Commission and Member States to make informed decisions that protect health and the environment while considering industry needs. The consolidated opinions are expected to be published in the middle of 2026.

ESPR: Practical implementation underway

The Eco-design for Sustainable Products Regulation (ESPR), in force since 18 July 2024, sets out a new EU framework for the introduction of requirements to enhance product environmental sustainability, covering aspects such as durability, recyclability, and substances of concern. The regulation scope applies to a broad range of industries, from chemicals to electronics and textiles. 

Impact: The ecodesign approach requires businesses to assess their product design, materials, and overall lifecycle to ensure alignment with environmental sustainability goals. Companies in sectors like textiles, chemicals, steel, and energy-related products must integrate sustainable design principles into their production processes. A key element of ESPR is the Digital Product Passport (DPP), which will provide an electronic record of product-related information, enabling greater transparency and traceability across supply chains. This shift towards sustainability presents not only regulatory challenges but also opportunities for innovation and product differentiation. Companies can enhance their product offerings by aligning with the EU Green Deal’s environmental objectives. 

The practical implementation of ESPR is already in full swing and important actions are underway, such as the Commission’s first call for members and observers for the Ecodesign Forum set up in October 2024 and the Joint Research Centre (JRC) final study report on new product priorities published on 13 November 2024, which will feed into the 1st ESPR Working Plan to be adopted by 19 April 2025. For textile products, a JRC preparatory study to define ecodesign requirements is already in progress.  

Companies are advised to follow the ESPR implementation process closely for their products of interest and participate in relevant consultations, impact assessments and the Ecodesign Forum for their products of interest in order to enable the setting of meaningful and feasible ecodesign requirements.

EU Poison Centre Notifications – Inspections starts in January 2025

On March 25, 2024, the European Chemicals Agency (ECHA) launched a project to inspect whether suppliers of hazardous chemical mixtures are notifying national authorities, as required, for entry into poison centre databases. These notifications ensure that poison centres have the correct information to advise in emergencies and protect human health.

Impact: From January 2025, inspectors will verify that the necessary notifications, labels, and Safety Data Sheets (SDS) are in place. The inspections will last six months, with a final report expected in late 2025. Suppliers must ensure their hazardous mixtures are properly notified to poison centres. Failure to comply could lead to enforcement actions, so companies should review their notifications, labels, and SDS to ensure full regulatory compliance

CBAM: Only the “EU Method” for reporting will be accepted from 2025

The EU Carbon Border Adjustment Mechanism (CBAM), which entered its reporting phase in late 2023, with the first reporting requirements due in January 2024, will fully come into effect by 2026. The mechanism aims to tackle carbon leakage by imposing carbon costs on imported goods that do not meet the EU’s carbon emission standards.

Impact: In 2026, industries such as cement, steel, aluminium, and fertilizers will face new compliance requirements under CBAM, requiring companies to report their carbon emissions and purchase carbon certificates. CBAM is foreseen to be expanded to chemicals in the future. For the chemical industry, this means closely tracking the carbon footprint of imported goods into the EU. Companies will need to adopt strategies to minimize emissions and invest in carbon assessment tools to meet the regulatory requirements. Early preparation for CBAM is critical to avoid financial penalties and ensure alignment with the EU’s broader decarbonization goals. Note that from 2025, only the so-called EU method is accepted for reporting. This means that companies should check if they must update their emission monitoring practices. Companies are required to submit reports every quarter until Q4 2025.

Corporate Sustainability Reporting Directive (CSRD)

As of January 2024, the EU Corporate Sustainability Reporting Directive (CSRD) requires large companies and listed companies (except listed micro-enterprises) to disclose detailed information on their Environmental, Social, and Governance (ESG) practices. This includes reporting on topics such as environmental impact, chemical usage, and measures to ensure environmental safety.

Impact: EU companies under the scope of CSRD must adopt robust data tracking systems to comply with the CSRD, ensuring that they can report accurately on their ESG impacts. AI-driven tools and software are increasingly being used to streamline data collection, analysis, and reporting. Beyond regulatory compliance, increased transparency can also boost a company’s reputation, attract sustainability-focused investors, and align with sustainability-driven market trends and priorities.

Outside the EU

UK REACH Transitional Registration Model – Feedback expected in 2025

On 13 November 2024, the Department for Environment, Food & Rural Affairs (DEFRA) provided an update on the consultation for the Alternative Transitional Registration Model (ATRm) under UK REACH. The consultation, which took place from 16 May to 25 July 2024, aimed to reduce the financial burden on GB companies related to data requirements for UK REACH registration. DEFRA has received 241 responses and is currently reviewing the feedback to refine its approach to chemicals regulation, including UK REACH. A summary of the responses will be published in 2025

Impact: If adopted, the ATRm would continue offering a phased approach to UK REACH compliance, providing more flexibility for companies. However, the status of the extended registration deadlines for 2026, 2028, and 2030 remains uncertain. Affected companies must stay informed about these developments and prepare to adjust their compliance strategies to maintain their access to the UK market.

Ukraine Law on Chemical Safety, Ukraine REACH and CLP Regulations

Ukraine has taken a significant step toward harmonizing its chemical safety standards with the European Union. On 29 June 2024, the law on ensuring chemical safety management of chemical products came into force, serving as the cornerstone for chemical safety regulations in Ukraine. On July 23, 2024, the country approved Ukraine REACH, and on November 15, 2024, Ukraine CLP came into force. These two aforementioned new regulations introduce comprehensive chemical registration and classification requirements for chemicals industry to comply with.

Impact: Ukraine REACH will enter into force on 26 January 2025, starting a one-year pre-registration phase. Ukraine-based manufacturers, importers, and Only Representatives (ORs) must pre-register substances to the Ministry of Environmental Protection and Natural Resources of Ukraine to maintain market access. With staggered registration deadlines in 2026, 2028, and 2030, companies must review their product portfolios, identify substances under Ukraine REACH, and devise robust compliance strategies. Businesses already EU REACH registered are eligible for simplified registration with reduced costs, easing their compliance burden.

As per Ukraine CLP, notification deadlines for hazardous substances are as follows:

  • Substances on the market before 15 November 2024 must be notified by 15 November 2025.
  • Substances introduced from 15 November 2024 must be notified within 30 days of first placement.

Furthermore, the Law on Chemical Safety requires additional permitting for certain toxic substances by manufacturers or users of such toxic substances.

K-REACH 2024 Registration Deadline

South Korea’s K-REACH regulation requires companies to register chemical substances manufactured or imported in volumes between 100 and 1000 tons per year, to the Ministry of Environment in South Korea, by the 31st of December 2024, to maintain market access from January 2025 onwards.

Impact: To comply, companies affected by the 2024 deadline must gather detailed data on the substances they produce or import and submit this information in Korean for approval by the regulatory authority. Failure to meet this deadline could result in potential penalties and loss of access to the South Korean market. Companies affected by K-REACH registration requirements are encouraged to begin registration processes immediately, possibly through the assistance of an Only Representative or service provider based in South Korea, to ensure timely and accurate compliance.

India BIS Expanding Products Covering Different Sectors

India’s Bureau of Indian Standards (BIS) has significantly expanded Scheme 1, mandatory list of certification, creating compliance requirements for many new products for both domestic and foreign manufacturers. Foreign producers must comply with these changes. A new quality control order for household and commercial electrical appliances was published on September 17, 2024, with a deadline of March 17, 2025, for obtaining a BIS license for products in this category.

Impact: Businesses must stay informed about the expanding list of regulated products and ensure their products meet India’s evolving standards and related product deadlines. Foreign manufacturers must appoint a local Authorized Indian Representative to help navigate the complex regulatory environment and facilitate BIS licensing and ensure market access to India.

Industry thought leaders’ perspectives

“2024 was another year of international regulatory change and development. In the UK, we saw further details on how the UK REACH policy may be shaped and, given the large number of responses to this consultation, how important this framework is not only to industry but to a spectrum of stakeholders.

In the meantime, the government changed, and we look forward to further industry engagement and clarity in 2025. Forging closer ties with the EU and global partners can only enhance the UK’s competitiveness and a domestic regulation which is both pragmatic and proportional, is a key enabler for this.” – Neil Hollis, Regulatory Affairs Manager, BASF Plc.

“2024 has been an important year in the timeline of regulatory impacts on the chemical industry. In my role, two key regulatory developments are front of mind for different reasons. First is evolving reporting requirements. 2024 marked the beginning of the data collection and reporting period for CSRD for some EU based companies. This milestone, and the broadening of this in 2025, demonstrates clearly that we will see a notable shift in disclosures. This is not just the case of taking what was voluntary and making it mandatory, but rather making mandatory such a thorough and broad set of requirements that few voluntary reports have historically reported on. This is not just a big shunt forward for those lagging on any reporting, but also a heavy lift even for those seasoned ESG-committed organizations. If companies adopt these requirements effectively however, there is value to be realized in identifying and mitigating risks while leveraging opportunities on their most material issues.

The second key development, and a one that is likely to grow in its significance through to 2030, is value chain transparency. The EU Deforestation Regulation (EUDR) requirements, while delayed, are likely to be upheld and mark an important step in increasing need for information sharing and product data transparency across the industry. This, combined with the existing CBAM requirements and upcoming expectations on ESPR and digital product passports, shows just how important available and transparent product information will continue to be. This may redefine what product-level sustainability means and will take some factors that are currently differentiators into being table stakes and market access issues.” – Liam McCarroll, Senior Director of Global Sustainability, Univar Solutions

Conclusion

The regulatory and sustainability challenges of 2024, introduced in this newsletter, along with other developments such as the adoption of Brazil’s REACH-like regulation on the 13th of November 2024, Türkiye’s KKDIK on-going registration efforts towards the 2026 deadline, intensified U.S. EPA PFAS actions, and stricter global product regulations, highlight the critical need for proactive engagement. Companies that stay ahead of evolving chemical and product regulatory compliance requirements will not only safeguard market access but also will lead in sustainability, positioning themselves for long-term success in a rapidly changing global landscape.

Should you need support with chemical regulatory compliance and sustainability related matters, please do not hesitate to contact us at sales@reachlaw.fi

 

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