The European Green Deal[1] is Europe’s new strategy for sustainable growth. The latest initiatives related to it, released by the European Commission last week, are new Industrial Strategy[2] and Circular Economy Action plan for Europe[3]. But what are the main takeaways for sustainable growth in pharmaceuticals sector?
An ambition for a toxic-free environment in the Green Deal
In the communication of the European Green Deal, the Commission states that it will propose measures to address pollution from new or particularly harmful sources, such as pharmaceuticals. This is included in zero pollution ambition for a toxic-free environment.[4] The zero pollution action plan should be adopted in 2021. In addition, to ensure toxic-free environment, the Commission will present a chemicals strategy for sustainability in summer 2020. All parties, including industry, should work together to combine better health and environmental protection and increased global competitiveness. The initiatives aimed to mobilize industry for a cleaner and circular economy include new Industrial Strategy and Circular Economy Action Plan.
Sustainable growth in the Industrial Strategy
Pharmaceutical industry employs over 2.5 million people directly and indirectly across Europe and is the largest contributor to the EU’s trade surplus of all industrial sectors.[5] The Industrial Strategy states that the EU will support the development of key enabling technologies that are strategically important for Europe’s industrial future, including pharmaceutical sector. This means reducing dependency on other countries and thus increasing autonomy in strategic areas of the society. Now, the industry is eager to hear what is stated in the New Pharmaceutical Strategy that will be published in 2020. It focuses on the availability, affordability, sustainability and security of supply of pharmaceuticals. Although the Industrial Strategy is also aimed to direct the industry for cleaner and circular economy, the ambition for a toxic-free environment is not clearly visible in it. It is not surprising, bearing in mind the earlier, not so successful attempts to develop a non-toxic environment strategy.[6]
Circularity goals cannot be met if suppliers in third countries do not adopt the circular economy practices
To become greener and more circular while remaining competitive, industry will need a secure supply of raw materials. In the Industrial Strategy, the Commission states that an Action Plan on Critical Raw Materials, crucial also for markets of pharmaceuticals, will be put forward. Furthermore, many multinational companies in the EU operate with global supply chains, which starting points are in developing countries. This may hinder the achievement of the goals set in the Circular Economy Action Plan. Barriers include, for example, incoherent policy frameworks, lack of awareness and capacities of business operators, and still insufficient market demand for circular economy products and services.[7]
Bringing the ambition to life
In order to bring the ambition for a toxic-free environment to life, Europe needs industry that becomes greener while remaining competitive on the global scale. Pharmaceutical sector has the forefront position to take a real action towards green chemistry and to get full benefit of the Green Deal.
Competitiveness is determined and can be supported by several stakeholders, the main actors being the pharmaceutical industry itself, the patients, the Commission, the European Parliament, the Member States, the regulators, the distributors, the pharmacists, the hospitals, and healthcare professionals.[8] A dream to come true, all stakeholders must be constructive and work together.
The author Mirella Miettinen is a Senior Researcher at the UEF Law School and a leader of work package 3 in SUDDEN.
[1] COM(2019) 640 final, Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions. The European Green Deal.
[2] COM(2020) 102 final, Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions. A New Industrial Strategy for Europe.
[3] European Commission, Circular Economy Action Plan. The European Green Deal. [https://ec.europa.eu/environment/circular-economy/pdf/new_circular_economy_action_plan.pdf]
[4] European Commission. Factsheet: Eliminating pollution. The European Green Deal. [https://ec.europa.eu/commission/presscorner/api/files/attachment/860249/Eliminating_Pollution_en.pdf.pdf] (published 11 December 2019)
[5] Koen Berden, The EFPIA view: The EU’s Industrial Strategy: Will Europe smile or will she not smile; that is the question. [https://www.efpia.eu/news-events/the-efpia-view/blog-articles/the-eu-s-industrial-strategy-will-europe-smile-or-will-she-not-smile-that-is-the-question/] (published 11 March 2020)
[6] Ekaterina Mikhaylova: European Green Deal – A New Hope for Safer Chemicals? Center for International Environmental Law, Blog. [https://www.ciel.org/european-green-deal-a-new-hope-for-safer-chemicals/] (published 27 February 2020)
[7] SWD(2020) Commission staff working document. Leading the way to a global circular economy: state of play and outlook. Draft. [https://ec.europa.eu/environment/circular-economy/pdf/leading_way_global_circular_economy.pdf] (accessed 11.3.2020)
[8] Koen Berden, The EFPIA view: The EU’s Industrial Strategy: Will Europe smile or will she not smile; that is the question. [https://www.efpia.eu/news-events/the-efpia-view/blog-articles/the-eu-s-industrial-strategy-will-europe-smile-or-will-she-not-smile-that-is-the-question/] (published 11 March 2020)
