Executive Summary

With the introduction of UK REACH, GB CLP and the Chemicals Strategy, and following BREXIT, the UK Government has a once-in-a-generation opportunity to establish the UK as a Global Hub for green technologies.

Every technology that enables the green transition relies on chemicals – including non-ferrous metals and elements, like lithium, nickel and cobalt.

The UK’s Chemicals Management Regime will set the competitive framework for the UK in which the green economy could flourish.

The EU Chemical Management Policy, which previously applied to the UK, was often siloed and dogmatic and saw chemicals management as a very distinct and separate policy area from green ambitions.

This meant that high level green policies were, and in the EU still are, designed in conflict with environmental targets and green growth.

Often this was done based on the precautionary principle and a focus purely on hazards rather than on risk.

The result of this was that chemicals management and regulation created major headwinds for green jobs.

The UK now has the opportunity to learn from others’ mistakes and build a better system.

The Non-Ferrous Alliance (NFA) recommends that the UK’s new Chemical management Strategy:

• Focuses on balancing strategic ambitions of the green economy, whilst also optimising health and environmental outcomes. This can be achieved by conducting Risk Management Options Analysis, socio econom ic assessments, and focusing on real risks not theoretical hazards.
• Avoids creating silos. Include the full breadth of government expertise in discussions. This will ensure that chemicals management rules work with broader government policy. This could be done via a cross-governmental committee established to periodically review Restrictions and Authorisations.
• Allows for proper scrutiny. Provide a role for Parliament in the Chemicals Management Process through review of reports on new Restrictions and Authorisations, with explanations of the need for the materials, the health risks and the socio-economic impacts. These reports should be developed by the aforementioned committee.

 

UK Chemical Strategy – Non Ferrous Metals Perspective

The energy transition and the move to a more sustainable green way of living is fundamentally reshaping the global economy and all of industry.

The move from fossil fuel to sustainable energy is essential to achieve the global aim of decarbonisation and is at the core of the UK Government Strategy.

Non – Ferrous Metals are Critical Minerals and are at the very heart of this transition.

The move to a Green and Sustainable economy cannot take place without Non – Ferrous Metals and the downstream chemicals that they generate.

Whilst this is globally recognised in industry, the practical strategy to ensure that these materials and chemicals continue to be readily available and commercially usable to UK industry is unclear.

Clarity is required around the UK Chemical Strategy for the critical chemicals that will be required for the green economy.

Non – Ferrous Metals form the basis of complex chemicals that are essential to the technical implementation of sustainable technologies, such as Electric Vehicles and batteries.

If the UK wants to secure jobs and growth from the green economy, it means working very closely with Non – Ferrous Metals sector.

There is a very clear link between the competitiveness of the UK economy, the way in which we manage chemicals and the Non – Ferrous Metals sector.

At the end of 2020 the Non – Ferrous Metals Sector represented around 5% of all UK exports.

Post Brexit, and having left EU REACH, the regulation of chemicals in the UK is going through the biggest change in a generation and the HSE is tasked with designing the UK REACH framework, Best Available Technique Strategy.

Structural changes are being implemented to the UK Chemicals Strategy.

The HSE also manages the Control of Substances Hazardous to Health Regulations (COSHH) and publishes EH40 and other related documents that place strict controls on the safe exposure levels to chemicals in the workplace.

Industry and Regulators really understand and wrestle daily with the difference between Hazard and Risk. However, sometimes this distinction does not seem to be immediately obvious to policy makers.

The Non Ferrous Metals Sector has an excellent scientific understanding of the risks posed by metals and the special chemicals that it manufactures and uses daily.

Non Ferrous Metal companies in the UK are lean and technologically advanced and are interested and committed to research and technology development to enable them to remain at the forefront of sustainable energy production.

Whilst the UK is reorganising its Chemicals Regulation policy Post-Brexit, we have the opportunity to recalibrate policy framework , to be more ambitious , create a world leading robust British sector, with skilled manufacturing jobs and world-leading green expertise.

 

 

International Trade

The UK will never be entirely self -reliant for raw Non Ferrous Metal materials which are extracted from mines and ores in other parts of the world. Consequently, the UK must ensure the continuation of global free trade, based on diversity of supply and on high recycling rates. The UK should ensure the free flow of British goods globally, to the maximum possible extent.

We must ensure that regulation and chemicals management policy supports recycling of non-ferrous metals with complex chemistries

 

Chemicals Management

As the UK establishes its own new Chemicals Strategy and implements UK REACH and CLP, the UK has the opportunity to learn from the shortcomings of other systems and to secure a strong competitive UK advantage as a result.

Around the world, many countries separate technical issues on chemicals management from broader policy objectives. This is a mistake, as it means political objectives , like the green agenda, are often in conflict with chemicals management policies.

For example, battery manufacturing and complex metal recovery and the wider green agenda could become impossible in the UK if the regulatory framework discourages investment in the sector.

One of the problems with chemicals management h as been the global classifications that are sometimes applied to wide groups of chemicals although the chemicals themselves have different properties.

Some pressure groups suggest that all potentially harmful chemicals should be completely phased out or banned and, whilst it is recognised that some organic chemicals that cause adverse health effects can be replaced with safer alternatives, other chemicals are essential for manufacture of items such as batteries. A global approach to chemical management based simply upon hazard, whilst ignoring exposure and risk, does not improve environmental exposure.

We would strongly advise that the UK’s chemicals management regime should:

• Be Proportionate – an approach championed by the Taskforce on Innovation, Growth and Regulatory Reform published by the Taskforce Chaired by the Rt Hon Sir Iain Duncan Smith (MP).
• Not predict the future or “pick winners”. It is not possible to know which substances will be strategically important in the future. Consequently the new chemicals policy should maximise flexibility to use substances, so long as they do not pose severe risks at low doses and if that risk cannot be satisfactorily managed.
• Be risk-based, not hazard-based. ome non -ferrous metals can be classified as “hazardous” when they are in some forms. This is because when they are uncontrolled they can harm human health. However, at the same time these substances are also essential for human health. The difference is the exposure or “risk”. A well designed risk-based approach allows for the control of unacceptable risk to human health or the environment whilst allowing safe use to continue, thus stimulating innovation.

What Can The UK Do? – We must apply the correct risk management measures whilst also accounting for socio-economics and how substances are used. We recommend undertaking risk management option analyses at the start of regulatory processes to establish how best to manage chemical risks.

An example could be looking at whether UK REACH restrictions are more appropriate or Workplace Exposure Limits before starting any formal process.

We also strongly recommend that a deep understanding is gained of the socio economics of a given substance at the very start of any chemicals management process, so that the strategic importance to the economy is understood throughout the process.

One of the difficulties that has developed in the EU systems stems from catch all classifications, without any scientific backup. The current proposal there to classify the hazard posed by lead powder in the same way as that posed by lead sheet or ingots is a case in point.

A Proportionate Regulation approach is strongly admonished in the recent report by the Taskforce on Innovation Growth and Regulatory Reform which was Chaired by the Rt Hon Sir Ian Duncan Smith MP and supported by the Rt Hon Theresa Villiers MP and George Freeman MP.

The Non Ferrous industry sector would like to assist the Government and Regulators to get this balance right for Non – Ferrous Metals in the UK, based on the extensive expertise and data already available within the sector in the UK.

 

Q+A

Why are non-ferrous metals considered to be chemicals?
Naturally occurring metals will often interact with the body or the environment and so fall under the scope of chemicals legislation. These effects can be positive for example cobalt (Vitamin B), Lithium (used to assist mental health such as bipolar disorder and depression and in treatment of anorexia etc.), are both examples of metals we need to stay healthy – but in excess can also have negative effects.

Aren’t these chemicals dangerous?
Many non-ferrous metals occur naturally in the environment and are simultaneously essential to human life – like zinc and cobalt – but in large doses can pose risks. Chemicals management is about understanding and managing risks.

If they can harm the human body, why don’t you think they should be regulated?
Chemicals management is about compromise and proportionality. It’s about understanding the chemistry and the risk. Non – ferrous metals are essential in nearly all manufacturing processes, especially new technologies that will decarbonise our economy and enable greater productivity in the future. Therefore we need to work with them safely. Making a decision to not work with them at all would preclude the UK from achieving the green agenda aspirations.

Should we not leave everything to scientists to decide based on evidence?
There absolutely needs to be good science at the heart of the decision-making. However, in the end decisions are ultimately political in nature. If the UK decides that a competitive battery manufacturing sector is something it wants, then having a “zero risk” chemica ls management policy for is inherently incompatible with that political objective. Therefore, a political decision has to be made about what level of risk is acceptable. This must be done based on scientific evidence. A comparison would be trying to have a “zero risk” aviation sector while trying to allow people to fly, or “zero risk” approach to managing COVID, while still allowing people to access hospitality or shopping.

What are you asking the British Government to do?
Chemicals management is a balancing act and we don’t think that some Governments or Regulators have always got the balance right in the past. Some governments have been “hazard” focused – in other words they are focused on getting the risks to zero. If we compare this to other sectors like healthcare (public health or medicine), transport (like air travel or road transport) or even food, we don’t try to get to “zero risk” to human health, rather we manage risk to a point where it’s considered acceptable. This is a political decision.

We are asking the British government to extend its proportionate approach to managing risk, which is already adopted in the aviation, transport, food sector, over to the chemicals management sector. Doing this will allow Britain a competitive advantage in the green economy.

As the UK develops the Chemicals Strategy, and its own versions of REACH and CLP, it has a once in a generation opportunity to better support both workers and industry and to ensure that the UK is at the forefront of the green recovery, whilst also providing a well – managed and safe environment for all.

The Non Ferrous Alliance would be happy to discuss any aspect of this communication.

Email regulatory@nfalliance.org.uk