Navigating the revised EU Urban Wastewater Treatment Directive | Coffee Break Life Sciences #1

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The event delved into the implications of the revised EU urban wastewater treatment directive on pharmaceutical and cosmetic companies, highlighting the extended producer responsibility and financial burdens faced by these industries.

The new directive targets pharmaceutical and cosmetic companies to reduce micropollutants in urban wastewater. Member states are responsible for implementing the directive, including upgrading wastewater treatment plants. To implement the directives goals, producers of medicinal products and cosmetics are subject to an extended producer responsibility. Concerns were raised about the directive's financial impact on pharmaceutical and cosmetic companies, with estimates from industry associations indicating substantial costs. Due to the significant additional costs over the next 30 years legal challenges of the directive are being considered – particularly by German industry associations.

Notable Quotes:

"The payment obligation of the affected companies is unlimited in time because even after the upgrade of the wastewater treatment plants, the operation of the wastewater treatment plants continuously incurs costs."

“While specific industries beyond pharmaceuticals and cosmetics are not subjected to the extended producer responsibility, the broader scope of the revised directives suggests that industries contributing significantly to water pollution or energy consumption in wastewater treatment could potentially be subject to future regulations. Therefore, further product groups might be also subjected to the extended producer responsibility in the future.”

Our key take-aways:

Pharmaceutical and cosmetic companies face a significant financial impact due to the extended producer responsibility imposed by the EU Urban Wastewater Treatment Directive.
Affected companies are advised to monitor the implementation by the member states and to start assessing the financial impact on their product portfolio and necessary implementation steps.
The German industry association BPI announced its intention to legally challenge the extended producer responsibility before the European Court of Justice but will take time to resolve.
Companies are encouraged to stay informed about the directive's introduction into law in the member states, to engage with national legislators and the EU Commission, and to monitor the implementation and the potential practical challenges.