1. Cumulative Cost Assessment of the EU Chemical Industry
DG Enterprise and Industry
Unit F2 Chemicals Industry
Fertilizer Working Group
15 December 2014
Tanja Kranjc, ENTR.F2 / policy officer

2. Context of the Cumulative Cost Assessment (CCA)
"The objective of revitalization of the EU economy calls for the endorsement of the reindustrialisation efforts in line with the Commission's aspiration of raising the contribution of industry to GDP to as much as 20% by 2020."
"Studies on cumulative cost assessments have been conducted in a number of sectors (steel, aluminium) and will be performed in others (e.g. chemicals and forest-based industries) in an effort to estimate ex-post the joint costs of different strands of national and EU regulations on industrial sectors."
Communication on European Industrial Renaissance, January 2014

3. Context of the Cumulative Cost Assessment (CCA)
"A package of initiatives covering regulatory fitness of the chemical sector will be launched in 2014, including a Cumulative Cost Assessment and a Fitness Check of the most relevant chemicals legislation other than REACH."
"…CCAs provide industry-wide assessments of a variety of
key cost factors. Given their limited scope and the focus on regulatory costs rather than benefits, CCAs cannot be the sole basis for policy recommendations. Their results will feed into evaluations, Fitness Checks and impact assessments."
COM(2014) 368 final, new REFIT communication

4. Better Regulation agenda
- Quality of legislation, timely and correct implementation, proper enforcement;
- Chemical companies, many of them SMEs, need stable regulatory environment;
- Competitiveness, environmental and health, safety and consumers' objectives;
- EU legislation is necessary because it contributes to a level playing field in the internal market;
- Manufacture of fertilizers = additional specific regulation.

5. The objective of the CCA study
- To measure cumulative costs for the chemical industry resulting from different EU legislation
- To measure their evolution over last ten years, as compared to the profit margins and to international competitors
N.B.: No policy recommendations at this stage!

6. The scope of the CCA study
- To analyse CCA effects for the chemical industry as a whole, along the production chain (administrative costs related to access to feedstock, production processes, marketing/commercialisation, and after-sales activities);
- To analyze actual cumulative administrative costs, both direct and indirect, of existing legislation.

7. The matrix approach
- Cumulative costs assessment will be based on a matrix covering subsectors of the chemical industry based on NACE categories as well as the different pieces of EU legislation affecting the chemical industry along the production chain. - The matrix approach will enable to demonstrate the costs per subsectors of the chemical industry as well as per most relevant EU legislation.

8. The matrix approach - illustration
Subsectors NACE
Access to feedstock
Production
Placing on the market, sales, marketing
Aftersales incl. waste management A B C D E F G H I J K L
20.11
20.12 …
20.15 (Manufacture of fertilizers and nitrogen compounds)

9. Subsector-specific input to the study
- What are the most relevant EU legislation and policies affecting inorganic and organic fertilizers?
- Which structures have been established for the purpose of the study?
- How to define the relevant cost categories, both direct and indirect, for the most relevant EU legislation and policies?
- Sub-sector specific cost structure;
- Subsector-specific data; case study?
- EU legislation vs. MS implementation;
- Related studies on fertilizers…?

10. Timetable Timeline 23 July 2014 25 July 2014 Signature of the Contract
Kick-off Meeting
September 2014
1st Steering Group Meeting
1st Mirror Group Meeting
October 2014
Inception Report
2nd Steering Group Meeting
2nd Mirror Group Meeting
January 2015
1st Intermediate Report
3rd Steering Group Meeting
3rd Mirror Group Meeting
April 2015
2nd Intermediate Report
4th Steering Group Meeting
4th Mirror Group Meeting
May/June 2015
Validation Workshop
July 2015
Final Report

11. Thank you for your kind attention!
Questions and opinions on a follow-up are welcome!
Contact: ENTR/F.2 = GROW/I.2
Mirror group: