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By Brown, Yvonne

Date: Wednesday, August 1 2001

Chemical companies play a key role in the economy, but Yvonne Brown knows regulators will ensure money does not come before the environment.

The chemical industry has made good progress in reducing emissions from chemical plants and the energy they use. But, the current lack of safety

data on chemicals and the changes that will occur in the industry over the coming years will present major challenges to policy makers.

This finding is just one of the conclusions made in a recent document presented by the Organisation for Economic Cooperation and Development (OECD), on the environmental outlook for the chemicals industry[1].

The report begins by recognising that this industry makes products with many beneficial uses, but it also realises their negative impacts on human health and the environment.

In addition, it recognises that the sector is an important part of the world economy, with the bulk of production and trade occurring in OECD countries. With an estimated US$1500bn in sales in 1998, it accounted for 7% of global income and 9% of global trade. The chemicals industry also employs over 10 million people worldwide.

The report predicts that the industry will continue to expand over the next 20 years, with faster growth rates in non-OECD countries. It also believes chemical companies in OECD countries will shift production to life science and speciality chemicals. The report sees more companies merging to form larger, but fewer, multinationals.

Impact on the environment

The OECD emphasises there is potential for a negative impact at every stage of chemical production and product use. First, as a major user of raw materials both for energy consumption and as feedstocks, the chemical industry can impact on the supply of non-renewable resources. Second, combustion of these sources can lead to emissions of carbon dioxide (a greenhouse gas), VOCs and nitrogen oxides, which can contribute to the formation of tropospheric ozone.

Finally, processing of the raw materials and feedstocks can release pollutants into the environment. The chemicals industry ranks high in its intensity of toxic chemicals released to air and land compared to other large industrial sectors. But the report identifies how greatly the sector has reduced its air and toxic emissions per unit of output in the last two decades.

The document presents findings about the impact of the chemical industry, including that:

* global carbon dioxide emissions from the chemical industry are a small part of total carbon dioxide emissions, but are projected to increase in the future

* consumption of water is large compared to other industries, except agriculture

* releases of known hazardous pollutants from the chemicals industry are probably declining, but the sector still discharges large quantities of chemicals to air and water

* releases of substances that promote the formation of smog and acid rain and the generation of hazardous waste are also declining, but comparatively little information exists on hazardous chemicals sold in commerce and used in numerous products

* there is information for new industrial chemicals and pesticides, but not for the far greater number of chemicals already in existence.

One of the most regulated industries

The report also describes the regulations that currently affect the chemicals industry, which is one of the most regulated of all industries.

The sector is subject to regulation of its products, and to a number of legal requirements that minimise the release of chemical substances to the environment during processing.

The way the chemicals industry complies with regulations has also changed. During the '80s, end-of-pipe abatement techniques were the main method of controlling the amount of hazardous substances released to the environment. Then came the drive towards pollution prevention as opposed to pollution control.

This in turn is now giving way to the use of sustainable chemistry. This involves maximising resource efficiency, energy and non-renewable resource conservation, risk minimisation, pollution prevention and waste reduction at all stages of a product's lifecycle. The theory is also focusing on the development of products that are durable and can be re-used and recycled.

Sustainable chemistry strives to accomplish all this through the design, manufacture and use of efficient, effective and more environmentally benign chemical products and processes.

The report sets out three areas that will receive more attention in the future. These include:

* creating a holistic approach to chemical safety that addresses the risks to people and the environment resulting from the production of individual substances. It considers those risks posed by products made from these substances and by the use of natural resources and energy to create these products. This will involve improving the knowledge base for the design of safe chemicals, and finding more effective ways to evaluate and manage the risks resulting from the release of chemicals. The report advocates using an Integrated Product Policy and an Extended Producer Responsibility regime to ensure industry takes the Responsible Care concept a step further.

* examining and responding to the possible negative impacts on chemical safety resulting from the increasing globalisation of the chemicals industry

* facilitating and promoting environmental democracy in relation to chemical safety, so that all stakeholders will be better informed and on an equal footing when discussing relevant environmental issues.

References

[1.] OECD Environmental Outlook for the Chemicals Industry, OECD

Yvonne Brown graduated in 1992, and gained her doctorate four years later. She is now with the UK's Paint Research Association. Brown edits two journals on health, safety and environmental legislation for the coatings industry, including the PRA's `SHE Alert'.

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