Issue #14, September 2011

Issue #14, September 2011

CONTENT

1. Message from the President
2. UEIL Congress 2011
3. 4th Symposium on "Metal Removal Fluids: Global challenges"
4. Committees and Sections:

• Competition Committee
• HSE Committee
• Technical Committee
• GEIR

5. EU Policy updates
6. UEIL Secretariat
7. Editorial Calendar

1. Message from the President

Jos Jong
UEIL President

2. UEIL Congress 2011

The Annual Congress of the European Lubricants Industry 2011 will be held in Dubrovnik - Croatia, on 26-28 October.

UEIL and Lubrizol are looking forward to welcoming all delegates and partners to the beautiful city of Dubrovnik. The programme committee is proud to announce an outstanding programme addressed to participants who would like to know more about the latest developments of the European and global lubricants industry. Go to the Congress web pages to read more about the sessions on marketing trends, R&D, regulatory updates, food grade lubricants and much more.

The Annual Congress is grateful to all its sponsors for their support.

Make sure you register and don't miss the Annual Congress of the European Lubricants Industry 2011!

3. 4th Symposium on "Metal Removal Fluids: Global challenges"

The 4th Symposium on "Metal Removal Fluids: Global challenges" took place in Barcelona, Spain 14-16 September 2011 at the beautiful Hotel Meliã.



185 delegates coming from 19 different countries attended this unique event on Innovation, Application and Regulation of the Metalworking Fluids Industry. Academics, industry professionals, government regulators and industry advisors shared experiences, best practices, developments and opportunities of the industry. A very informative programme which included 39 different presentations about the challenges that face the industry today.

Some delegates said "A good selection of presentations, informative, excellent venue, very well organised", "Excellent networking opportunities. Very good programme".

Go to the Symposium pages

4. Committees and Sections

• Competition Committee
  The European Commission
  The Competition Committee met DG Competition on 4 August 2011. This meeting gave us the opportunity to:
  - Inform the European Commission about new uncompetitive behaviour noticed on the market
  - Insist on the need that the European Commission provides a FAQ document on the new Regulation as soon as possible
  
  We have planned to discuss again with DG Competition in September about these issues. We will keep you informed.
  
  Competition cases
  The Competition Committee continues to handle competition cases during its meetings.
  Its actions do not only concern vehicles or tractors manufacturers. The Competition Committee intercedes with other manufacturers too, such as, for example, in the field of construction and mining equipment.
  Any sector is excluded. The Competition Committee studies all the cases provided by UEIL members.
  
  Other stakeholders
  The Competition Committee has planned to meet other stakeholders from the aftermarket sector soon, always in order to develop a synergy and to increase the impact of our actions.
  
  
• HSE Committee
  "When I am writing this entry for the UEIL newsletter the Barcelona Symposium is only one week ahead, and when you read this text the Barcelona Symposium on Metalworking Fluids will be already history.
  
  We are all very excited about such an important event for our industry.
  Being part of the programme committee that has worked on this event was a challenging, new and very interesting experience.
  Knowing the high-level speakers confirmed and having read their interesting abstracts, I am sure that all presenters will give a precious contribution to an informative and enrching programme. And I am also sure that the knowledge acquired in Barcelona will be then shared in delegates' respective companies, ensuring a multiplier effect and a further strategic input to those companies.
  
  I firmly believe in the need to organize this type of Symposia to share knowledge and discuss the future of our industry. The contribution of customers, research centres and regulators is crucial to continue to work with enthusiasm in our sector".
  
  Ton van der Kaaij, Chairman of the UEIL HSE committee
  
  
• Technical Committee
  Since the last newsletter, the Committee has met once, in Brussels, on 21 September 2011.
  
  The UEIL membership has raised issues with the Technical Committee about several Original Equipment Manufacturers and these are currently being reviewed. The Technical Committee is working together with the Competition Committees on many cases, including off the road applications, related to availability of technical information and warranty matters. Further information is available on the members area of the website.
  
  The Terms of Reference for the UEIL/ATIEL Special Task Force have been endorsed by ATIEL’s General Assembly.
  The objectives of this Task Force are to increase awareness of and compliance with the audit requirement included in the ATIEL Code of Practice and to facilitate market intelligence on products conforming to EELQMS.  Work has started on acquiring data already in the marketplace in order to try to assess the current level of non-compliance.  The STF will study the data and decide how best to detail the analysis and proceed accordingly.  It is anticipated that this work will be completed during Quarter 4 of 2011.
  
  The next ATIEL Technical Council meetings are scheduled to be held in Brussels, on 14 November 2011 and 10 May 2012.
  
  
• GEIR
  The European Waste Oils Regeneration Industry (GEIR) supports a resource efficient Europe
  
  Ensuring that waste is treated and used as a resource and fed back into the economy as a raw material by 2020 are some of the main goals of the EU Roadmap for a Resource Efficient Europe published by the European Commission on 21st September 2011. EU Commissioner for Environment, Janez Potocnik, is leading on this initiative and the purpose of this initiative is to establish guidelines for a long term process to achieve an EU resource efficient society. The EU envisages by 2020 that energy recovery should be limited to non-recyclable materials and landfilling virtually eliminated. Higher priority will be given to recycling and re-use in all relevant EU policies.
  
  The European Commission has also outlined plans on how to achieve the resource efficient society. These include revision of recycling targets in EU waste legislation, replacing all environmentally harmful incentives with environmentally friendly ones, stimulating demand for recycled materials through appropriate economic incentives and development of EU end of waste criteria, creating stakeholders working group to develop EU resource efficiency targets and resource productivity indicator and many more.
  
  In this perspective, GEIR recently had the opportunity to demonstrate its support for enhancing resource efficiency through a meeting with the Cabinet of Environment Commissioner Potocnik. This meeting provided GEIR with the opportunity to raise awareness about the European re-refining industry and its importance to contribute to a resource efficient Europe. Furthermore, GEIR took the opportunity to raise the problematic of UK’s Processed Fuel Oil Protocol for the re-refining industry as well as the fact that it can undermine the objectives of the EU Roadmap as outlined above.
  
  As part of its wider advocacy and outreach activities, GEIR has also reinforced its relationship with other recyclers through close involvement in the Recovery and Recycling Industry Chain (RRIC). RRIC, previous named WRIC, was revived in 2011 to continue to be the main voice of recyclers in relation to REACH and CLP. RRIC has now been officially formed and a press release will be sent to EU policy-makers and stakeholders to make it public. In addition, advocacy work on improving the ECHA Guidance on the Compilation of Safety Data Sheets has been conducted by the group over the summer months. Current activities include recognition of a standard statement in the Safety Data Sheets for recyclers explaining why they do not have a registration number as well as watching closely developments around REACH review in relation to waste.
  
  In the coming months, the European Regeneration Association will continue its advocacy efforts on issues related to the end of waste criteria for waste oils, the ecolabel criteria for lubricants & their future revision to include used oils, REACH and its envisaged review, modernization of EU public procurement rules and enhancing the Green Public Procurement aspect in it, etc.

• GEIR members have elected a new President, Dr Detlev Bruhnke. Detlev Bruhnke is Member of the Management Board of AVISTA Oil AG with responsibilities for R&D and technology transfer, QSHE, refinery production and technical services. After joining the AVISTA group in 1991 as Laboratory Manager of Mineraloel-Raffinerie Dollbergen GmbH, he has been Head of the R&D Department before being assigned Technical Managing Director in 2007. He is also Board Member of AVISTA OIL AG since 2008. He holds an MSc and a PhD in Chemistry from the Technical University of Braunschweig, Germany. He is also Member of the Board of the German association Bundesverband Altoel e.V. (BVA).
  Fabio Dalla Giovanna, GEIR Past President, finished his second mandate and said: "Over these four years we have tackled together many problems and many battles and I can say, to my great satisfaction, that today GEIR enjoys respect, visibility and credibility, so much so that we are often called to
  express our opinion as stakeholders and as a landmark in our sector to the authorities and to the European Commission".
  
  GEIR members and Secretariat wish good luck to Detlev for his Presidency!
  

Update on the Energy Taxation Directive

While a new Energy Taxation Directive is being discussed at European level, important recently adopted modifications to the current regime of taxation and operational management of lubricants have also surfaced. These concern the inclusion of lubricant additives (CN 3811) into the Control and Movement provisions of the current Energy Taxation Directive, resulting in the need to use the Excise Movement and Control System (EMCS) in all EU Member States from July 2012 onwards if no action is taken. Last July, a technical committee composed by representatives of the EU-27 voted in favour of accepting a change to the treatment of fuel additives covered by commodity code 3811, as an anti-fraud measure as fuel additives used for heating or motor fuels are subject to an excise duty. Whilst this seems reasonable, code 3811 also covers lubricant additives, which have never been subjected to the Control and Movement mechanism. This change means that the goods are subject to EU control and movement provisions and that they will have to travel under Community duty suspension arrangements between approved tax warehouses. Movements of fuel additives will be controlled using the electronic Excise Movement and Control System (EMCS). Without having tax warehouse approval, excise duty will be due on production and/or importation. After speaking with several Member States representatives, it was acknowledged that the inclusion of lubricant additives into the EMCS was rather an unintended consequence of the decision taken. Given the huge impact such changes will have in the lubricant industry in administrative and financial terms, UEIL is working very closely with the Commission services and national government representatives to find a satisfactory solution by which lubricants are not included in the EMCS.

In addition, a possible inclusion of Base oils (CN 2710 1999) into the Control and Movement provisions of the current Energy Taxation Directive, resulting in the need to use the EMCS system in all EU member states for base oils is now also under discussion at the EU level. As this decision-making process is in its early phase, UEIL will work to ensure that when a draft proposal is tabled mid-2012, the EMCS is not applied to base oils that cannot be used for heating or motor fuel.

UEIL is also engaging with Commission and Council to try to get Member States to exempt lubricants from energy taxation specifically in the new Energy Taxation Directive (they are now out of scope which still allows other similar taxes to be applied to lubricants). As only four countries currently tax lubricants there is market distortion and a harmonised exemption would therefore be necessary (basically going back to the Directive in force until 2003). Adoption of a new Energy taxation Directive is not expected before 2013 (after which there is still 18 months of implementation time).

EU prepares to review REACH legislation
The European Commission is preparing to review the controversial REACH regulation, which requires chemical manufacturers to justify that their products are safe for consumers. The REACH review, due in 2012, will assess whether changes here are necessary. The Commission review will be based on a report drawing on lessons learned from the implementation of REACH, "with special attention to the costs and administrative burden and other impacts on innovation". This will include a review of registration requirements for lower tonnage substances. The review will also entail: an evaluation of the amount and distribution of funding made available by the Commission for the development and evaluation of alternative test methods, an assessment of the scope of REACH with regards to a potential overlap with other EU legislation and a review of the European Chemicals Agency. UEIL will monitor closely developments in this field and keep its members updated.

ECHA launches consultation on new SVHCs
At the end of August, ECHA published 20 new proposals for SHVC substances, on which stakeholders have the opportunity to comment. If the substances are eventually placed on the Candidate List, this will trigger Article 33 obligations concerning consumers' right to know about the use of the chemicals. Comments should focus mainly on the identification and dangerous properties of the substances that justify their inclusion as SVHCs, and on substance identity. Information on their uses and risks of exposure, as well as solutions, such as safer alternative substances or techniques will mainly be considered at the next stage of the process during the selection of substances for authorisation. The deadline for this consultation is 13 October 2011.

The substances are:

• Dichromium tris(chromate) CAS 24613-89-6
• Potassium hydroxyoctaoxodizincatedi-chromate CAS 11103-86-9
• Pentazinc chromate octahydroxide CAS 49663-84-5
• Aluminosilicate Refractory Ceramic Fibres (RCF)
• Zirconia Aluminosilicate Refractory Ceramic Fibres (Zr-RCF)
• Formaldehyde, oligomeric reaction products with aniline (technical MDA) CAS 25214-70-4
• Bis(2-methoxyethyl) phthalate CAS117-82-8
• 2-Methoxyaniline; o-Anisidine CAS 90-04-0
• 4-(1,1,3,3-tetramethylbutyl)phenol, (4-tert-Octylphenol) CAS 140-66-9
• 1,2-Dichloroethane CAS 107-06-2
• Bis(2-methoxyethyl) ether CAS 111-96-6
• Arsenic acid CAS 7778-39-4
• Calcium arsenate CAS 7778-44-1
• Trilead diarsenate CAS 3687-31-8
• N,N-dimethylacetamide (DMAC) CAS 127-19-5
• 2,2'-dichloro-4,4'-methylenedianiline (MOCA) CAS 101-14-4
• Phenolphthalein CAS 77-09-8
• Lead azide Lead diazide CAS 13424-46-9
• Lead styphnate CAS 15245-44-0
• Lead dipicrate CAS 6477-64-1

ECHA’s SVHC page: http://echa.europa.eu/consultations/authorisation/svhc/svhc_cons_en.asp

Clean Transport Systems consultation launched
The European Commission has launched a consultation on the Clean Transport Systems (CTS) I initiative, which aims to end EU oil dependency in transport, in the long term. This consultation puts an emphasis on the different fuels and technologies (including electricity and hydrogen) that should be part of the CTS and thus favoured as the technology of the future. This consultation will feed-in the Commission’s forthcoming Communication on alternative transport fuels in the first quarter of 2012. The Communication will present a comprehensive long-term alternative fuel strategy for the EU covering the whole transport sector and will identify possible future actions in this area. The strategy aims to provide industry, the public sector and consumers with a clear and coherent vision, and hopes to help accelerate the use of alternative transport fuels in the EU. In order to facilitate the implementation of the strategy, and to actively stimulate the market development of alternative fuels, the European Commission is also considering putting forward a legislative proposal on alternative fuel infrastructure requirements. The CTS initiative results from the Commission’s plans to modernise and decarbonise the transport sector. UEIL will monitor this issue and analyse any potential impact that the encouragement of certain technologies could have on the lubricant industry.

Commission presents eco-innovation measures
As part of the automotive integrated approach for the for reducing CO2 emissions from passenger cars, on 25 July, the European Commission adopted a Regulation and accompanying guidelines relating to the approval and certification of innovative technologies as “eco-innovations”. The Regulation enables car manufacturers to receive CO2 emission credits if they fit new cars with approved "eco-innovations" which reduce emissions. To qualify as an eco-innovation, a measure must reduce emissions by at least 1 gram of CO2 per kilometre, be missed by traditional emission testing mechanisms, and relate to cars' transport function rather than secondary systems such as their radios. There are five classes of potential eco-innovations technologies, including measures lowering the engine speed, improved mechanical components (which lowers the driving resistance of the vehicle incl. measures reducing the friction of mechanical devices), energy storing systems and heat-to-electricity converters.

Another set of 'super-credits' will reward carmakers for sales of cars emitting less than 50g/km. They will also be able to claim eco-innovation savings for these models. In line with these measures, the Commission is to present early 2012 a detailed strategy on the reduction of CO2 emissions for vehicles in all modes, and will set measures to promote the increased replacement rate of inefficient and polluting vehicles. The impact of such policies on the lubricant industry will be analysed by UEIL as the specific measures are proposed.

6. UEIL Secretariat

UEIL team in Brussels is made up as follows:

• Milagros Mostaza Corral – Secretary General
• Giuseppe Marletta – Association Coordinator
• Jenny Bateman – Congress Manager
• Jean-Philippe Monod - Public Affairs Senior Advisor
• Maite Caballero – Public Affairs Advisor