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PFAS Restriction under REACH: What Way Forward for Fluoropolymers & F-Gases? september 2023 Purpose of the Meeting 1. Introduction 2. Annex XV: share our observations 3. Economic impacts: share our assessment in case of a ban of Fluoropolymers & F-Gases altogether on the key sector of the economy 4. Discuss possible way forward Approach of the Five Countries- some concerns "Universal Ban" Annex XVII restriction to apply to all PFAS (fulfilling OECD definition), 18 months of `transition period' after Entry into Force (EiF). Derogations pesticidal active substances biocidal active substance human and veterinary medicinal products Time-limited derogations = "delayed ban" applied either 6.5 or 13.5 years later from EiF tentative derogations proposed in square brackets [...] where data is not enough Dominating "anti-PFAS" narrative is based on old technologies based PFOS, PFOA - banned since more than 10 years in Europe PFAS Restriction Timeline (2023-2026) TODAY Restriction Dossier Submission Public Consultation Publication (7 February) RAC adopts opinion and draft SEAC opinion ECHA Opinion Consultation on draft SEAC opinion Council/EP Scrutiny (tbc) Entry into force Draft Annex XVII Restriction adopted (tbc) Quality Check 13 Jan 2023 Conformity check 22 March 2023-Sep 2023 PREPARATORY PHASE STAGE 1: Annex XV Preparation STAGE 2: Public Consultation Nov 2023 Nov 2023-Jan 2024 ECHA PHASE STAGE 3: Opinion Development Feb-Mar 2024 Q1-Q3 2025 (tbc) Q3 2025 (tbc) Q4 2025 Early 2026 (tbc) COMMISSION PHASE SCRUTINY/ENTRY INTO FORCE PHASE STAGE 4: STAGE 5: Commission Stage Entry into Force & Enforcement "REACH Committee" First bans expected as from July 2027 onwards Some Substances in scope of PFAS Proposal Fluoropolymers (PTFE, PFA, etc) F-Gases (e.g 1234yf and 1336mzz isomers) Fluoropolymers are a specialty plastic F-Gases are specialty performance refrigerants Durable by design and fluids. Fluoropolymers have thermal, chemical, F-Gases (1234yf) are circular by design photochemical, hydrolytic, oxidative, and Three main properties: cooling, heating and biological stability and they have negligible insulation (blowing agents). residual monomer and oligomer content and low Ultra-low global warming potential (GWP) and to no leachables. no Ozone depleting potential (ODP) Fluoropolymers do not pose a significant risk to human health or the environment when used for their intended purposes. REACH PFAS Annex XV - Our Concerns THE PROPOSAL BY 5 COUNTRIES IS FLAWED No derogations, only bans (+18 months after EiF) or "delayed bans" (+6.5 or +13.5 years after EiF) Persistency - main criterion for ban ("P-sufficient approach"): No hazard assessment No information on use resulting in emissions Nor risk assessment Insufficient analysis of alternatives No causal link between alleged presence of PFAS and actual fluoropolymers usage Wrong premises (e.g. non-fluorinated polymerization aids are `better' for the environment) Old data (e.g. HFPO-DA emissions data from 2013) Alternative RMOs not considered DIRECT IMPACT ON FLUOROPOLYMERS and F-Gases 1. All PFAS as per definition, unless explicitly derogated, will be banned as from July 2027 2. Most substances will be completely banned after a transition period (if at all) 3. Fluoropolymers and F-Gases are in scope of restriction proposal. 4. Fluorinated Polymerization aids are banned for the production of PTFE and FKM (Chemours products). 5. Transported isolated intermediates used under strictly controlled conditions are banned (contrary to REACH). OVERALL: indirect ban on high-tech economic sectors, including green technologies, relying on fluoropolymers. OVERALL: no demonstration of unacceptable risk & no recognition that fluoropolymers can be produced responsibly FLUOROPOLYMERS: can be manufactured responsibly HFPO-DA=GenX polymerization aid Note: By the end of September Chemours is publishing a significant update About HFPO-DA (GenX technology) HFPO-DA has been developed as a safer alternative to other polymerization aids HFPO-DA is not consumed during the polymerisation process and is recovered, re- used and recycled Polymerization aids only facilitate chemical processes and are not intended to be part of the final product For technical reasons, some direct or diffuse emissions of processing aids into the environment (air and water), cannot be excluded. The risks of direct and indirect emissions can be reduced through various filtering and chemical processing techniques, which have largely improved over the recent decades. HFPO-DA has some persistent and mobile properties but does not bioaccumulate in human tissues and is not classified for human health toxicity (non T) in the EU HFPO-DA is only used in an industrial setting under permit conditions requiring the application of best available techniques and minimization of emissions. No health risks are expected for the local population Responsible Manufacturing in the EU The Dutch National Institute for Public Health and Environment concluded that there is "no health risk is expected for people living in the vicinity of the Chemours Dordrecht plant due to exposure" Erik Haverkort - Dutch MP (VVD): "Chemours can be seen as a cleaning company, as the water taken from the river has more PFAS than the water Chemours is emitting at the end", during a webinar on PFAS on April 6, 2023. These achievements are also reflected by the updated national permits, which are mostly at the limits of what is technically feasible: 8000 6000 Dordrecht (NL) permitted HFPO- DA emissions to air and water (kg/ year) 6400 To air To water 4000 2000 0 660 2013 2035 450 2017 20 95 2020 4 2 2022 Preliminary assessment - May be subject to change Fluoropolymers and F-Gases are used across sectors and are key to EU Initiatives and Policies All sectors are connected, one sector cannot exist without the other Both FPs & F-Gases are key driver of the "Green Deal" (Upstream and Downstream) Both FPs & F-Gases are substances of necessity rather than choice Construction Product Regulation Green Deal Industrial Emissions Directive Strategy for sustainable and smart mobility Common Agricultural Policy EU Industrial Strategy Climate Law Energy efficiency directive Farm 2 Fork Shaping Europe's digital Future F-Gas Regulation Applications in semiconductor manufacturing PFA, PTFE, FKM, FFKM, AF, PFPE, HFCs, HFOs SEMICON TOOLS Valves, Fittings, Tubings Pumps, Filters Lubricants Valve seats Valve sealing Vacuum pump oil Etchant gas Pellicle mask Flow measurement Thermal management Heat transfer fluids FEP, ETFE, HFCs, HFOs INFRASTRUCTURE Duct coating Air conditioning Humidity control Fire protrection PFA, FKM WAFER TRANSPORT Wafer carrier FOUP sealing PFA, PTFE, FEP, PVDF, FKM, FFKM, HFOs CHEMICAL DISTRIBUTION SYSTEM Valves Fittings Heat exchanger/insulation Flow measurement Tubing chemicals primary Tubing chemicals secondar containment Water system tubing Pumps Filters Seals Electronic cleaners PTFE, PFA CHEMICAL PACKAGING Container lining Drums Tanks lining Applications in Data Centers Electrical/Electronic Systems Tapes, wires and cables Data cables Electrical connectors, insulators Sensors Displays, touch screens Anti-drip, easy clean, non-adhesive additives for computers and other electronic devices Printed Circuit Boards PFA, PTFE, FEP Maintenance HFCs, HFOs Fiber optic end-face cleaners Defluxing and degreasing of servers or server components Fire protection of data centers PFA, PTFE, FEP, HFOS Equipment & Racks Immersion cooling fluid Wire and cable Gaskets and seals HFCs, HFOs Air Conditioning & Cooling Temperature and humidity control Air-cooled cabinets and direct expansion systems HFCs, HFOs, FEP Construction Building Foam Insulation - SPF Unitary HVAC Equipment Foam Insulation Data Cables Applications in Medical Medical devices and applications Surgically implantable medical devices such as vascular grafts Surgical mesh Heart patches Catheters Carrier fluid for the deposition of lubricants on medical devices and catheters Dielectric insulators in defibrillators, pacemakers Diaphragm pumps Membranes for filtering and venting purposes Sterile container filters, needle retrieval systems, Tracheosto, catheter guide wire for laparoscopy, valves, fittings, pumps, tubing and medicine inhaler canister coatings Labware Medicine Packaging Items that need sterilization Metered Dose Inhalers PTFE, FEP, PFA, ETFE, HFCs Infrastructure HFOs, HFCs Transport and stationary refrigeration systems AC, heat pump, & humidity control for: - Patient rooms - Special areas (OR, ICU, etc.) Thermal management for labs and equipment Refrigeration and insulation for Food Services and distribution of vaccines and pharmaceuticals Cleaning of supplemental oxygen systems for breathing air Foam insulation for cryogenic tanks Thermodynamic sanitary hot water tanks Fire protection PTFE, FEP, PFA, FKM, PFPE, HFOs Medical imaging & analysis Semiconductor chips O-rings, gaskets, seals Coating for wire & cable Tapes, wires, and cables Bearings and assemblies Degreasing Applications in Clean Energy Renewable Energy Production PTFE, FEP, ETFE, PFSA, FKM, PFPE Photovoltaic front sheets protection Photovoltaic back sheets insulation Junction boxes in photovoltaic vents Control centers for offshore wind parks Wind turbine paints and coatings Release film: support production of composite turbine blades esp. for offshore turbine PTFE bearings Stationary & Mobility Fuel Cells PFSA, FKM, PTFE Ionomer exchange membranes for PEM fuel cells Gaskets and seals to prevent leaks and environmental releases to reduce carbon dioxide emissions into the atmosphere Binder materials in the electrodes Component of the gas diffusion layers (GDLs) 13 External September 19, 2023 Chemours Confidential Energy Storage PFSA, FKM, PTFE Ionomer exchange membranes for flow batteries Gaskets and seals to prevent leaks and environmental releases to reduce carbon dioxide emissions into the atmosphere Binder materials in the electrodes Hydrogen Production PFSA, FKM, PTFE Ionomer exchange membranes for PEM water electrolysers Tubing fluid transfer in alkaline water electrolysis hydrogen production systems Binder materials in the electrodes Gaskets and seals to prevent leaks and environmental releases to reduce carbon dioxide emissions into the atmosphere Applications in Chemical Production Manufacturing and processing PTFE, FEP, PFA, ETFE, FKM, PFPE, PFSA, FFKM Valves Ion Exchange membranes Vessels Instrumentation lining Reactor vessel and agitator lining Filters Lined pipes and fittings Refrigeration machines coolant Heat tracing Bolts/washers Seals Data Wiring Gaskets Distillation column packaging Pumps Lubricants HFCs, HFOs 1/2 Technical equipment Propellants in degreasers, leak detectors, sealants, paints, drain openers HFCs, HFOs, PTFE, FEP, PFA Transport and distribution Container lining Packaging AC cooling Very low temperature refrigeration ELECTRICAL SYSTEMS, WIRES, CABLES, AND SEMICONDUCTORS Semiconductor chips Lambda/O2 sensor conduit & grommet Electric mirror lubrication DC motor bearing lubrication Oxygen/NOx Sensor Heated seat wire Diesel pump wire ABS transmission brake sensor wire PTFE, FEP, PFPE, PFA, FKM High tension ignition cable Battery terminal wire Convoluted wire harness conduit Cable tie wraps Xenon/bi-xenon headlight wire Throttle body injection wire ABS sensor cables Printed Circuit Boards TRANSMISSION & TRANSAXLES Internal shift seal ring/clutch piston ring Clutch pilot and release bearings Clutch bearing lip seals Dual mass flywheel replacement Auto ORC de-coupler for alternators Driveshaft: CV joint lubrication PTFE, FKM, PFPE ENGINE & POWERTRAIN PTFE, FKM, PFPE Head cylinder & oil pan gasket Transmission & crankshaft seals Valve stem seals Bearing lubrication Flexible O-ring & piston skirt coating Front engine accessory drive Throttle body bearings & lubrication ETC lubrication Actuator assembly; valve belt tensioner Air intake manifold gaskets Turbocharger hoses EV binder for battery and seals PTFE, FEP, ETFE, FKM CHASSIS PTFE, PFA, PFPE, FKM, HFCs, HFO ABS interconnected hose Hydraulic break lines Impulse hose at wheel Brake pad clips, shim and wear indicator Insulating foams and sound dampening Shock struts/absorber piston seals Dry Lubricant bearing door hinges Axle seals Adhesives NVH busing - lubrication Steering ball bushing incl. lubrication Steering ball joint insert and shaft steering splines Steering assist pump piston rings Cabin comfort and heating FUEL SYSTEMS Fuel line: feed return, vapor Fuel line quick connector seals Interconnect hoses Filler neck hose Fuel rail crossover FIORs Fuel sender seal Connector o-rings Diaphragm pressure regulator Anti-expulsion tank valve Pressure injection bushing EV battery cooling Applications in the Cold Chain Foam HFCs, HFOs Insulated Transportation Shipping Containers / Railcar / Trailers - SPF Insulation Walk-in Cooler Panels Reach-in Coolers High-End Residential Refrigerators High-End Commercial Refrigerators Refrigerated Warehouse - SPF Insulation Spa foam Insulation Water heater foam insulation Lining of valves, piping, tubing, filters, seals, gaskets and other standard fluid handling components Lining of mixing vessels and tanks Coating on processing belts Air Conditioning & Refrigeration HFCs, HFOs Refrigeration for food preservation (farm) Industrial Ice Making (fishing vessels) Refrigerated transport (truck/trailer) Refrigerated transport (container - rail - ship) Refrigeration for food processing (flash freezing, etc.) (Industry graphic bullet points excel) Refrigerated Storage (warehouse) (Industry graphic bullet points excel) Refrigeration at point of sale (grocery, C-store) (Industry graphic bullet points excel) Refrigeration for food/beverage retail (restaurant, bar) (Industry graphic bullet points excel) Commercial Ice Making (Industry graphic bullet points excel) Refrigeration - home appliances (Industry graphic bullet points excel) AIRFRAME PTFE, ETFE, FEP, FKM, HFCs, HFOs Exterior surface coatings Toilet area galleys Overhead lockers Satellite dishes Aircraft wings covers Heat shrinkable protective covers Air bearings Electronic device trays Control surfaces Integral skin foams Paint Replacement Film 3D printed and molded parts for repair Packaging Sleeve items that require light transmission Fasteners Fire prevention systems ENGINE & SYSTEMS O-rings, gaskets, seals Satellite propulsion systems Throttle box seals Arming components Engine and exhaust components Battery binders Battery separators PTFE, FKM, PFPE, PVDF, HFCs, HFOs Gears, and slides Oxygen systems (propulsion, SCBA) Degreasing components and landing gear Cabin comfort cooling and heating PTFE, ETFE, FEP, FKM, HFCs, HFOs FUEL SYSTEMS Fuel lines and hoses Hydraulic systems Coating for wire & cable Tapes, wires, and cables Containment bags, bladders, and tanks Tank fuel seals and insulations Tank liners Tubing liners Fluid transfer devices PTFE, FEP, ETFE, FKM, HFCs, HFOs ELECTRICAL/ELECTRONIC SYSTEMS Tapes, wires, and cables Printed circuit boards Coating for wire & cable Electrical connectors, insulators Flight control systems Sensors O-rings, gaskets, seals Air bearings Electric harness parts Gears, and slides Applications for Fluoropolymers & F-gases in Defense Machinery PFPE, PTFE, FEP, PFA , ETFE, HFCs, HFOs See trucks and planes Battery binders Pneumatic cylinders Aircraft fuel pump systems Hydraulic systems Fuel tank insulations Integral skin foam seating to increase protection Degreasing of engine components and landing gear Medium and heavy-duty vehicle AC Carrier fluid and lubricant deposition Lubricants PTFE, HFCs, HFOs Soldier Protective garment Fireproof batteries PTFE, PFA,ETFE,FEP, HFCs, HFOs IT & Electronics All communication devices, transportation and command centers - High Frequency Circuit boards - Radar Radome - Data Cabling - High performing batteries Way Forward - Fluoropolymers Fluoropolymers should get "no timelimited derogation" for manufacturing and use in applications in transportation, medical, electronics, semicon, hydrogen, communication, chemical and other industrial and professional applications Condition: responsible manufacturing through abatement & mandatory end-of-life management (ALL manufacturers & downstream users) Fluoropolymers and polymeric PFPEs: meet OECD criteria of low concern (PLCs), do not degrade and do not bio-accumulate (high molecular weight) The largest share of fluoropolymers waste shall be thermally treated and mineralised - standards for waste management facilities shall be harmonised State-of-the-art abatement technologies can reduce emissions of fluorinated organic compounds to a couple of kgs per year. Permits for Dordrecht facility for emission to air and water took abatement measures into account (around 35 kgs in 2021 vs 8 tons in 2013) Industry - all EU manufacturers of Fluoropolymers commit to cut emissions FPG Responsible Manufacturing Programme for European Manufacturing sites Since the 2021 adoption of the responsible manufacturing principles, all Fluoropolymer Products Group (FPG) members are engaged in concrete actions related to responsible fluoropolymer manufacturing practices. The undersigned members of the Fluoropolymer Products Group (FPG) hereby commit to an industry Responsible Manufacturing Programme for European Manufacturing sites. The programme is comprised of three pillars: 1. A voluntary commitment to reduce non-polymeric PFAS emissions from our fluoropolymer manufacturing; 2. A platform to promote the adoption of commercially available state of the art technologies to minimise non-polymeric PFAS emissions in our manufacturing; and 3. A commitment to inform downstream users of fluoropolymers on their safe handling and use. Way Forward - F-Gasses Low Global Warming Potential F-Gasses (HFOs) should be derogated for key sectors applications (Heatpumps, Automotive, Blowing agents for insulation) Condition: Mandatory recovery of F-gasses during life, periodic leak-checks, mandatory recovery end of life. Enable recovery of F-gasses in the End of Life Vehicle Directive (mandatory recycling) and Harmonise leak checks for new vehicles during yearly maintenance control Impose and enforce regular leak checks for heat pumps maintenance Additional risk management measures The implementation of the additional risk management measures mentioned above could be facilitated by a voluntary commitment which involves all actors of the F-gas supply chain, including manufacturers/importers, distributors, downstream users, research institutes and trade associations. Establish a stakeholder platform involving such actors to develop measures such as the set-up of certification systems in a collaborative and constructive manner together with authorities and regulators. Focus Area I. Automotive sector Manufacturing of vehicles Suppliers (Tier I. and II.) Car manufacturers OEM Distribution and sales After market services Logistic companies and dealers Maintenances, service, inspection End of Life Recycling, safe disposal Under Construction I. To provide regulators with an additional option to consider beyond the proposed PFAS restriction, and to avoid potential restriction inflicting high societal cost and damage. II. To increase transparency in the supply chain to further reduce the potential illegal trade of F-gases III. To identify where emissions can be reduced from manufacturing to end of life/waste To facilitate the development of innovative measures, always with a view to further reduce the impact on the environment IV. To develop independent authentication/certification through third parties (e.g.EU EMAS) Note: Some stakeholders are already ISO 14001:2015 certified, which is complementary to EMAS. V. To develop voluntary initiatives to complement existing or future regulatory measures other than the proposed PFAS restriction VI. To secure a `One Voice' for the European Commission and other EU decision-makers, through the value-chain VII. To secure reuse, recycling and development of a circular economy VIII. To secure the green deal objectives in their entirety: from reduction of energy consumption to the greening of solutions IX. To provide a neutral support for the entire industry to implement guidelines and proposals developed by the platform, that will be made available to along the supply chain. X. To increase transparency in the supply chain where possible and pertinent through innovative and currently being developed measures such as "Digital twins" or similar Thank you for your attention! EUI OCU5_j GROUP