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Regulation does shape profitability

corresponding

Dorothee Arns
Executive Director Petrochemicals Europe, Cefic

INTRODUCTION

Does regulation really impact the European (petro-)chemical industry in a quantifiable way, or is this just the unilateral perception of the industry? In 2015 the European Commission decided to take a deeper look into this topic to find concrete answers, embedded in the framework of their “Better Regulation” agenda. Independent Belgian consultant Technopolis was entrusted with conducting a comprehensive study called “Cumulative Cost Assessment (CCA)” and basing it on genuine data rather than on simulation. Since up until then precise data had never been published before, the new revolutionary aspect of this cost assessment exercise was that, with the help of companies opening their books, for the first time ever facts and figures were put on the table, not opinions. The outcome - officially published on the Commission´s homepage (http://ec.europa.eu/DocsRoom/documents/17784) in summer 2016 - illustrates the different dimensions of regulation and their effect on the profitability of European (petro-)chemical producers.

EU Regulation 2004-2014 under scrutiny

The study analysed the cumulative costs - in ...