The pharmaceutical and cosmetics industries have initiated a legal challenge at the Court of Justice of the European Union in response to a new directive requiring them to finance at least 80% of urban wastewater treatment. This directive, which is set to come into effect on January 1, 2025, aims to ensure that producers of medicines and cosmetics contribute significantly to the elimination of micropollutants from urban wastewater, adhering to the principle that the polluter pays.
According to Hans Goossens, President of Water Europe, over 90% of the micropollutants present in wastewater treatment plant effluents originate from pharmaceutical and cosmetic products. He argues that it is, therefore, “fair” for these industries to bear the costs associated with addressing this pollution. “The polluter pays principle is the cornerstone of European environmental policy,” Goossens stated.
Call for fair burden-sharing
In contrast, representatives from the pharmaceutical and cosmetics sectors contend that the financial burden should be distributed more equitably. Nathalie Moll, Director General of the European Federation of Pharmaceutical Industries and Associations (EFPIA), expressed their support for contributing to addressing pollution but emphasised the need for fairness in the allocation of costs. “We’re trying to understand the basis of the decision and identify all the various polluters,” she stated, highlighting the industry’s desire for transparency in the data and methodology used by the European Commission.
Moll also pointed out the industry’s interest in encouraging sustainable practices among all actors involved—not just those mandated to pay.
Concerns over rising medicine prices
The European Commission estimates that the additional costs for treatment at wastewater plants will total approximately €1.2 billion annually. While some industry representatives argue this figure is negligible compared to the overall revenue generated by the pharmaceutical sector, others, such as Medicines for Europe, warn that the directive could adversely impact the accessibility and affordability of healthcare.
Adrian van den Hoven, Director General of Medicines for Europe, warned that the required financial contributions could lead to astronomical price increases for essential medications. For instance, he cited an expected 900% increase in the cost of the diabetes medication metformin and a 350% rise in the price of the antibiotic amoxicillin as potential consequences of the directive’s implementation.
In total, companies from the pharmaceutical and cosmetics sectors, including Accord Healthcare France, Dermapharm, EFPIA, Adamed Pharma, Hexal, and Cosmetics Europe, have filed 16 cases against the EU directive. Additionally, Poland has referred the matter to the Court of Justice of the EU.
European Commission’s assurance
In a response to inquiries from Euronews, a representative from the European Commission assured that the potential impacts of this extended producer responsibility on the pharmaceutical industry had been thoroughly evaluated in the directive’s impact assessment. The Commission indicated that the repercussions on medicine prices and the industry’s profit margins would be “marginal.” Furthermore, they noted that the directive allows considerable flexibility for member states in calculating fees to ensure that they remain proportionate and do not hinder the accessibility and affordability of medicines.
Source : euronews
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