ChemSec warns changes to EU Green Taxonomy could harm consumer health

A draft legislation from the European Commission proposes shortening the list of hazardous substances that are banned in cosmetics. Environmental group ChemSec has warned that the new Omnibus package could allow thousands of substances to be categorized as “sustainable” despite documented concerns over their health effects.

“Proposals to water down European legislation allow major investments to be labeled green and sustainable, even though the companies they support are using toxic substances in their products,” says ChemSec. 

A spokesperson from the non-profit tells Personal Care Insights that a substance’s absence from the list does not necessarily ensure its safety, but that it has not yet undergone Europe’s regulatory process.

In October last year, the European Chemical Agency found that 6% of inspected cosmetic products contained hazardous substances banned under REACH regulations.

Potential health hazards 

The legislation would allow for the inclusion of galactoside — a hormone disruptor used in cosmetics and fragrances. Also included is TFA — a “forever chemical” — which has been found to build up in drinking water and affect the health of unborn children.

Chemsec says the changes are “buried” in a single paragraph of an annex to an appendix to the EU’s Green Taxonomy — which specifies which investments can be officially labeled sustainable under EU law.

According to the proposal, products that contain one of the 247 “substances of very high concern” will be ineligible for sustainable investment.

The Omnibus package could allow for harmful chemicals to be used in cosmetics.“By specifying only a narrow list of harmful substances to be disqualified from sustainable investment, the proposal will also encourage ‘regrettable substitution,’ whereby companies switch to substances that are chemically almost identical but technically distinct from those on the list,” says Theresa Kjell, head of Chemicals Policy at ChemSec.

Deregulation criticisms 

The proposed changes are part of a wider campaign to simplify Europe’s green regulations and boost business growth. These moves have encountered widespread criticism and have been described as deregulatory.

“The demand for ‘simplification’ has come specifically from Europe’s chemicals producers and been interpreted in parts of the Brussels bureaucracy as outright deregulation. The sector is seeing a fall in sales and profit margins from historic highs and facing the consequences of 30 years of low innovation and investment compared to Asian and US competitors. Loosening hazardous substances regulations is clutching at straws, but still seen as a boost to the industry,” says the ChemSec spokesperson. 

The independent chemicals watchdog says the European Commission has adopted new proposals that cut red tape and simplify EU rules for citizens and businesses. In the recent Competitiveness Compass, the Commission claimed to set out its vision to make the EU’s economy more prosperous and competitive. 

“To regain competitiveness and unleash growth, the EU needs to foster a favorable business environment and ensure that companies can thrive,” says the Commission. 

However, green investment groups with €6.6 trillion (US$7.3 trillion) worth of assets under management have urged the Commission not to disrupt its sustainable finance framework, signaling that proposed changes could create legal uncertainty, jeopardize Europe’s long-term economic competitiveness, and harm investment.

Kjell adds: “By loosening the controls on hazardous pollution in this way, the European Commission is turning away from its Green Deal pledge to do no significant harm to human health and the environment. In doing so, it is also destabilising the investment environment and therefore putting economic growth at risk.”