Economic instruments to incentivise substitution of chemicals of concern – a review

The purpose of the IOMC is to promote co-ordination of the policies and activities pursued by the Participating Organisations, jointly or separately, to achieve the sound management of chemicals in relation to human health and the environment. [...] The level should reflect the damages caused by the production, use solvents, batteries and disposal of the chemical, which in the absence of the tax would not be reflected in the market price of the input or final product. [...] Challenges in making taxes reflect the external costs caused by chemicals of concern In theory, an environmental tax should be designed so that the environmental and health costs caused by the production, use and disposal of the chemical are reflected in the price of the chemical or the products containing the chemical. [...] The revenue from the tax can also in principle be used to subsidise the development and use of alternatives to the targeted chemicals of concern. [...] In line with the Polluter Pays Principle, the right to put a chemical on the market could be accompanied with the need to buy pollution permits in proportion to the pollution space needed for the type of substance and the 25 volume put on the market.