A proposed law in the European Union Parliament could dramatically increase costs for chemical producers worldwide and create snafus for chemical buyers.

The REACH (registration, evaluation and authorisation of chemicals) proposal has been under debate in Europe for nearly five years and would require chemical companies to register all materials they use and import and provide relevant safety information about those materials.

A stricter version of the ruling requires manufacturers substitute safer materials for hazardous ones wherever possible. The European Parliament’s environment committee backed this version on Oct. 10.

A softer version would only encourage substitution where possible.

Guido Sacconi, an Italian lawmaker who is spearheading the stricter version through Parliament, said at a recent news conference, “If a safer alternative is available, then it should be substituted.” He added that the additional cost to the chemical industry of using a safer and more expensive substance would be more than offset by the alternative of being forced to close factories producing a chemical deemed to be unsafe.

The U.S. chemical industry estimates the new rule could cost its companies $8 billion during the next decade and affect exports.

In a statement released after the environment committee backed the stricter version, the American Chemistry Council said, “Many of the amendments adopted by the committee will adversely impact the U.S. and other EU trading partners, specifically in areas such as time limited authorizations, mandatory substitution, disproportionate requirements on non-EU importers of polymers, limited rights for confidential business information, and introduction of a separate discriminatory legal 'duty of care.’”

The European Parliament is planning a final vote on the directive in November or December; if approved, the directive then must be cleared by EU member governments. That still leaves time for the lobbying process to continue.