Cosmetics Producers to Bear Urban Wastewater Treatment Costs Under New EU Directive

On December 12, 2024, EU announced the Directive (EU) 2024/3019 on Urban Wastewater Treatment in its Official Journal. This Directive lays down rules on urban wastewater management, with specific provisions regarding the extended producer responsibility of cosmetics producers. It will come into force on January 1, 2025.¹

Reasoning Behind Accountability in Cosmetics

"Micropollutant" refers to a substance, including its breakdown products, commonly found in aquatic environments, urban wastewater, or sludge, that can harm the environment or human health even at low concentrations. Recent scientific findings underscore the urgent need to address micropollutants, which are now routinely detected in all waters across the EU. While current wastewater treatment processes, including primary, secondary, and tertiary treatments, remove some pollutants, an additional quaternary treatment is increasingly recognized as necessary to capture a broader spectrum of remaining micropollutants.

Quaternary treatment, which involves advanced processes to further reduce micropollutants, will incur additional costs for monitoring and installing new equipment in wastewater treatment plants. In line with the polluter-pays principle established in the Treaty on the Functioning of the European Union (TFEU), producers of products contributing to micropollutants should be responsible for bearing these treatment costs. Since pharmaceuticals and cosmetics are primary sources of micropollutants in urban wastewater, the extended producer responsibility system is adopted to ensure that the responsible producers finance the costs of removing micropollutants generated by their products throughout the lifecycle.

Obligations Imposed on Cosmetics Producers

Article 9 of the Directive outlines detailed obligations for pharmaceuticals and cosmetics producers. Member states, as mandated by the Directive, shall enact laws, regulations, and administrative measures necessary to comply with these obligations by July 31, 2027, and ensure that designated producers assume their extended producer responsibility by December 31, 2028.

1. Financial contributions

Cosmetic producers placing products on the EU market, including those based outside the EU, are required to cover the following costs:

1. At least 80% of the total costs associated with implementing the quaternary treatment requirements;

2. The costs of collecting and verifying data on products placed on the market; and

3. Other costs necessary to fulfill their extended producer responsibility.

Considering the financial burden for producers, exemptions from the above obligations are granted to producers who can demonstrate one of the following:

• The quantity of substances in the products they place on the EU market is below 1 tonne per year;

• The substances in their products are either rapidly biodegradable in wastewater, or do not generate micropollutants in wastewater at the end of their lifecycle.

2. Reporting requirements

The Directive mandates that member states ensure designated producers fulfill their responsibility through a producer responsibility organization. Each year, cosmetics producers shall provide the following information to this organization:

1. The annual quantities of substances contained in cosmetics they place on the market;

2. Information regarding the hazardousness of these substances in urban wastewater, as well as their biodegradability at the end of their lifecycle;

3. A list of exempted products, when applicable.