The EU is currently undertaking efforts to reduce bureaucratic obstacles, including proposed changes to sustainability regulations that could allow harmful chemicals to be included on the bloc’s green investment list. Campaigners have raised concerns about potential risks associated with these amendments, as they could permit products containing harmful substances, such as PFAS ‘forever chemicals’, to receive the EU’s ‘green’ label. The proposed changes could limit the list of chemicals that would prevent a product from being considered a sustainable investment to just 247 identified ‘substances of very high concern’. This has led to criticism from organizations like ChemSec, who argue that the EU is jeopardizing its Green Deal agenda by abandoning the principle of ‘do no significant harm’.
ChemSec has been a vocal critic of the slow pace of EU chemicals restrictions and warns that companies could exploit loopholes in the proposed changes to market products containing hazardous chemicals while still benefiting from the EU sustainability label. Some of the substances not currently restricted under EU law include hormone-disrupting perfume galaxolide and the forever chemical TFA. Despite these concerns, the Commission is facing support for its simplification efforts, with many viewing it as a necessary step to reduce regulatory burdens on businesses. European Central Bank president Christine Lagarde has even acknowledged that the simplification drive can be perceived as a form of deregulation.
Roberta Metsola, President of the European Parliament, has expressed support for the simplification drive and emphasized the importance of pushing forward with these efforts. The European People’s Party, which is spearheading the push to free businesses from EU regulations, is backing the simplification agenda. Metsola has stated that the Parliament will adopt an urgency procedure for the simplification omnibus during the next plenary session, highlighting the unprecedented nature of this move. The Council is also expected to endorse the anti-red tape agenda during its ongoing summit, indicating widespread support for efforts to streamline regulations and promote economic growth.
The EU’s simplification drive has sparked debate among stakeholders, with some arguing that it is necessary to support economic growth and reduce bureaucratic burdens on businesses. However, critics warn that the proposed changes to sustainability regulations could undermine the EU’s environmental objectives and allow harmful chemicals to be used in products labeled as ‘green’. The public consultation on the reform of the sustainable investment rule book is open until 26 March, providing an opportunity for stakeholders to voice their opinions on the proposed changes. It remains to be seen how the EU will balance its goals of promoting sustainability while also simplifying regulations to support economic growth.
