Automotive Supply Chain impacts of CSS - Chemicals Strategy for Sustainability Marco Buczilowski / CLEPA Faurecia Innenraum Systeme GmbH - AIAG.org

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Automotive Supply Chain impacts of CSS - Chemicals Strategy for Sustainability Marco Buczilowski / CLEPA Faurecia Innenraum Systeme GmbH - AIAG.org
Automotive Supply Chain impacts of CSS
       Chemicals Strategy for Sustainability
           Marco Buczilowski / CLEPA
       Faurecia Innenraum Systeme GmbH
Automotive Supply Chain impacts of CSS - Chemicals Strategy for Sustainability Marco Buczilowski / CLEPA Faurecia Innenraum Systeme GmbH - AIAG.org
CLEPA EG Materials & Substances

How we are organized!
Automotive Supply Chain impacts of CSS - Chemicals Strategy for Sustainability Marco Buczilowski / CLEPA Faurecia Innenraum Systeme GmbH - AIAG.org
European Green Deal
                           The president of the European Commission, Ursula von der
                           Leyen, stated that the European Green Deal would be
                           Europe’s “Man on the Moon moment", as the plan would
                           make Europe the first climate-neutral continent by 2050!

The European Green Deal is also the lifeline out of the COVID-19 pandemic.
One third of the 1.8 trillions euro investments from the NextGenerationEU Recovery Plan, and the EU’s
seven-year budget will finance the European Green Deal.

Today´s subject-matter is about what´s worth to be considered and funded as ´green technologies´!
                                              Taxonomy
Automotive Supply Chain impacts of CSS - Chemicals Strategy for Sustainability Marco Buczilowski / CLEPA Faurecia Innenraum Systeme GmbH - AIAG.org
European Green Deal
Source: Survey in support of the Commission services' work on the definition of Safe and Sustainable by Design criteria
for chemicals and materials

With the European Green Deal (COM 2019/640), the European Commission outlines its vision to
make the European economy and society more sustainable. Great attention is paid on how to
achieve climate neutrality, circular economy, biodiversity protection, and a zero-pollution ambition
for a toxic-free environment. One of the priorities is to protect citizens and the environment against
the negative impact of hazardous chemicals, materials and products and to encourage safe and
sustainable alternatives.
In October 2020, the Commission adopted the Chemicals Strategy for Sustainability (COM 2020/667),
one of the steps towards a zero-pollution ambition for a toxic-free environment announced in the
European Green Deal.

The Zero Pollution action plan (COM 2021/400) was published in May 20021.
Automotive Supply Chain impacts of CSS - Chemicals Strategy for Sustainability Marco Buczilowski / CLEPA Faurecia Innenraum Systeme GmbH - AIAG.org
European Green Deal→ CSS
• The Chemicals Strategy for Sustainability (CSS) is an integral part of
  the Green Deal
                                                  •   CSS is mainly linked to “A
                                                      zero pollution ambition
                                                      for a toxic-free
                                                      environment”
                                                       –   EU REACH relevance
                                                       –   …

                                                  •   Some aspects also related
                                                      to circular economy
                                                       –   EU ELV
                                                       –   Battery Regulation
                                                       –   …
Automotive Supply Chain impacts of CSS - Chemicals Strategy for Sustainability Marco Buczilowski / CLEPA Faurecia Innenraum Systeme GmbH - AIAG.org
CSS - EU COM’s objectives
• The European
  Commission
  presented its main
  objectives in
  2020…
• … and a plan with
  56 actions!
Automotive Supply Chain impacts of CSS - Chemicals Strategy for Sustainability Marco Buczilowski / CLEPA Faurecia Innenraum Systeme GmbH - AIAG.org
CSS – 4 key initiatives
• Revision of REACH
  (Regulation No 1907/2006 on Registration, Evaluation, Authorisation and Restriction of
  Chemicals)

• PFAS Action plan
• Safe-and-Sustainable by Design Criteria
• Sustainable Product Initiative
REACH (1) – Revision process
• Timeline
                                                   Today                              CSS changes

                                                   Risk based regulation              Hazard based regulation

   – Consultation on initial roadmap – June 2021   (Restriction only if risk is
                                                   proven)
                                                                                      (Restriction without proven
                                                                                      risk)

   – Public consultation – Q1-2022                 Subsitution with sufficient lead
                                                   time
                                                                                      Subsitution within month

   – Planned adoption – Q4-2022                    Substance by substance             Thousands of substance
                                                   restrictions                       restrictions at once

                                                   Several hundred substances         Additionally up to 8000+
                                                   restricted in vehicles             substances to be restricted

• Main changes under discussion                    Exemptions based on soft           Exemptions only if use is
                                                   criteria                           essential
   – Definition of Essential Use                   No requirements on substance       Limitation in substance /

   – Group restrictions                            / material selection               material selections

   – …                                             No product design
                                                   requirements
                                                                                      Sustainablility product design
                                                                                      requirements

                                                   Protection of confidential         Less protection of confidential
                                                   Business Information (CBI)         Business Information (CBI)
REACH (2) - Group restriction
•   Some stakeholders would like that Restriction of substances is not done for
    each single substance but for full Substances Groups

     –   Example: 5 MS shared the evaluation of >4000 PFAS´s
     –   100-1000s of substances to be assessed in a single procedure
     –   Same duration as for single substances…
     –   …critical to industry to evaluate its impact, to report and substitute, if
         possible

•   Substances are planned to be restricted or regulated based on hazard
    properties only instead of current risk-based approach
     – Restriction without proven risk
REACH (3) - Essential use
• Discussion started in different circles
    – Criteria !?
    – Should it be applied to Substances and/or Products, as well !?
        • DG Growth tend to substances whereas DG Env may focus on article and substances

• Auto Industry’s position
    –   Essential use should be applied/evaluated on substances level
    –   Take into account the actual availability of substitutes
    –   Criteria should be transparent and unambiguous, as well as change management
    –   General exemption for spare parts and remanufacturing
PFAS action plan (1)
• Initial built on a hazard-based approach

• Group of 4700 substances to be assessed

    –   Many automotive applications
    –   Precise nature and concentration not always known
    –   No exhaustive list of Substances
    –   Not all CAS-No. known
PFAS action plan (2)
• Process led by five EU Member States

    – REACH Annex XV Restriction Dossier
    – Second call for evidence closed on 17/10/2021
    – Questionnaire: 150 pages!
        • Topics: transportation, lubricants, TULAC, F-Gas, electronics/energy,
          metal plating…

• Outcome expected in 2023
Safe-and-Sustainable by Design (1)
• Presented as an approach to the design, development and use of
  substances, materials and/or products that focuses on providing a
  function (or service), while reducing harmful impacts to human
  health and the environment.

    – Main expected impact = future regulation(s) or basis for them
    – The initiative is piloted by DG Research and Innovation
Safe-and-Sustainable by Design (2)
• Idea´s on Safe & Sustainable by Design Criteria / Principals

    –   Maximize renewables
    –   Efficient design
    –   Minimize toxicity
    –   Safe production
    –   Minimize waste
    –   …
Safe-and-Sustainable by Design (3)
• First mapping of criteria
                              •   Chemicals and materials are in
                                  general addressed as part of the
                                  final product
                              •   Chemicals are addressed in
                                  terms of the level of hazard to
                                  human health or to the
                                  environment

                              CLEPA will monitor developments
Sustainable Product Initiative
•   Major part of the Sustainable Product Initiative (SPI) = revision of the EU Eco-design Directive

•   Although automotive applications are not in the focus, there may be indirect impacts
     − Legal or regulatory provisions introduced here could then be extended to the
        automotive sector
          ▪ Labelling based on carbon footprint
          ▪ Digital product passport
          ▪ Wider scope of information sharing along the supply chain

•   Initiative to be monitored
•   Commission’s adoption expected by end of 2021
…and the Member States ?
    •    Germany has applied its Supply Chain Due Diligence Law
          – Hugh impact on reporting & tracking for industry

•       French Circular Economy Law to inform                Comes into force on January 1st 2022
        consumers, producers and importers on product        Obligation to make available information allowing the ED
        environmental content, including                     identification in a product (substance, mixture or article according to
•       Recycled content                                     REACH definitions) placed on the market
•       Durability
•       Use of sustainable materials
•       Reuse                                                Comes into force on January 1st 2022
                                                             preventing lost of plastic pellets in industrial environment
•       Dangerous substances
                                                             Target industrial sites where pellets are produced and used above
•       Strategic materials, including Rare earth            quantities above 5 tons.
•       Electronic information possible                      Audit by certified body every 3 years
Conclusion
• The Chemicals Strategy for Sustainability is a game-changer for Industry

• Main consultation activities will happen until 2022

• Huge work in terms of assessment and formal documents to be submitted

• Collaboration across the value chain is imperative at worldwide level
The End !?
  Thank you very much !

marco.buczilowski@faurecia.com
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