01 Feb What could the European Green Deal (EGD) mean for SADC’s agri-processing and pharmaceutical industries?
The European Green Deal (EGD) is a set of policy initiatives that outline the European Union’s (EU) strategy to reduce net greenhouse gas emissions in the short term (2030) by at least 55% and reach net zero emissions by 2050. The EGD plans to achieve this through a specific focus on the following:
1. Water quality and resources
2. Waste and wastewater management
3. Land and soil quality
4. Circular economy
5. Climate change (cleaner energy and net zero carbon)
The above points will be discussed in relation to their potential impact on SADC’s agri-processing and pharmaceutical industries. The vantage point of the discussion will be from Mop Tech’s core offering (water, wastewater and environmental hazards).
In summary, the EGD could see SADC’s agro-processing and pharmaceutical industries investing more towards capital and operating expenditure for both their water and wastewater treatment plants. This would be in order to meet the new drinking and wastewater directives. A shift from a linear economy towards a circular economy which champions recycling, as well as clean and renewable energy will also be necessary. Lastly, product traceability in terms of the manufacturing and processing journey to ensure environmental sustainability will be key.
1. Water quality and resources
Items highlighted by new directive
The EGD transition has served to revise the EU’s water quality approach in what is termed the Drinking Water Directive (a directive under EGD). The directive’s objectives are to update water quality standards, tackle emerging pollutants of concern and monitor Non Revenue Water.
In terms of the water quality standards, the revised Drinking Water Directive standards and parameters in some cases are more stringent than the World Health Organisation’s recommendations. Examples include maximum limit concentrations for Chlorite, Chromium, Lead, Turbidity and Somatic Coliphages.
In addition to this, there are new parameters which have been included in the drinking water standards that are now compulsory to monitor and remove. They include Bisphenol A (a chemical compound found in plastics), Chlorate (a bi-product of disinfection), Microcystin-LR (cyano-bacteria like green algae), PFAS (a chemical found in cleaning products, nail polish and non stick cookware) as well as Uranium.
The Drinking Water Directive also now features a watchlist of pollutants to be monitored. This list includes endocrine disruptors, pesticides and insecticides such as Ibuprofen (anti-inflammatory drug for pain and fever), Triclosen (prevents bacterial contamination in toothpaste, soaps, detergents), Neonicotinoids (agricultural insecticide resembling nicotine), Methiocarb (insecticide and bird repellant), Metaflumizone (insecticide for treatment of fleas and ticks) and Microplastics.
Potential implications
Due to changes in water quality parameters governed by the Drinking Water Directive, the EU has decided to revise pharmaceutical Good Agricultural and Collection Practices (GACP), as well as Good Manufacturing Practices (GMP). The implication of this to traditional pharma and emerging pharma industries such as the cannabis industry (primarily consisting of Lesotho and South Africa) are:
a. The World Health Organisation as well as South African National Standards (241) for drinking water may no longer be sufficient to satisfy EU GACP certification for irrigation purposes or use in facilities in this sector.
b. Water sourced from municipal potable treatment plants in SADC which currently do not have the ability to treat, screen and monitor the additional parameters of concern such as Endocrine disruptors, pesticides and other emerging pollutants will have to further be treated and monitored at the expense of the end user.
c. Higher capital and operating costs for both companies which are going to build/have built infrastructure related to water treatment for GMP accreditation, and possibly GACP, as they will now have to review/amend their designs/facilities to accommodate the new requirements.
Agricultural enterprises from SADC such as fruit exporters, wineries (primarily from South Africa), nut producers, as well as fisheries (trout fisheries in Lesotho and South Africa) may also face more stringent agricultural standards as part of the EGD’s “Farm to Fork” and Biodiversity strategy. This will be in an attempt for the EU to become global sustainable food leaders. This may mean more stringent standards and policing of irrigation standards for the watering of crops as well as the water bodies fisheries keep their produce in, especially if the fish are farmed. In addition, the protection of oceans and how these fish are farmed (including transportation and carbon strategy) are priorities in the EGD’s primary aquaculture strategy.
2. Waste and Wastewater management
Items highlighted by new directive
The EGD has cited that an effective waste and wastewater strategy which promotes sustainability is essential for all European Industries and importers of chemicals, food, beverages, pharmaceuticals and metals. This directly speaks to fighting water pollution through:
a. A proper wastewater treatment strategy of agricultural nitrates and runoff
b. Protecting the environment from persistent organic pollutants that may result through the improper disposal of agrochemicals
c. The appropriate choice of insect repellents, biocides and pesticides.
d. A proper wastewater strategy for fruit juice, wine and beer producers to tackle Chemical Oxygen Demand (COD), Biological Oxygen Demand (BOD) and Total Suspended Solids (TSS)
e. Reject streams from cannabis fertigation operations, such as RO reject
f. The proper disposal of pharmaceutical effluent that may contain Endocrine Disruptors
g. The proper treatment of fish farming wastewater that includes, faeces, excess food and pesticides
Potential implications
The potential impacts for agro-processing and pharma industries who wish to export to the EU under the new EGD are:
a. An extensive waste management plan detailing how the enterprise is ensuring their operations are not polluting the environment
b. A wastewater treatment facility which meets the specific needs of the client in terms of environmental preservation
3. Land and soil quality
Items highlighted by new directive
The land and soil quality directive of the EGD will be a direct result of the effectiveness of the management and implementation of the water quality and resources directive, as well as waste and wastewater management directives discussed above. It seeks to ensure the fulfilment of the zero pollution ambition for a toxic-free environment expressed in the European Green Deal.
In accordance with the EU’s mirror clauses to ensure SADC and other developing countries follow the same guidelines as the rest of the EU if they wish to import into the EU, the land and soil quality directive ensures that no contaminants as described in the parameters of concern listed in Section 1 and 2 are present in land and soils used for agro-processing and pharmaceutical use.
Potential implications
This will be demonstrated by the respective companies through the monitoring and constant testing of soil conditions, specifically in relation to testing for the contaminants and hazards discussed in Sections 1 and 2 above. Therefore, companies may need to develop:
a. A soil and testing action plan that sets out what they will test, how often they will test it and what they will do to ensure samples aren’t contaminated/compromised before they reach testing facilities
b. Set aside additional budget for soil samples and the testing therefore
c. A mitigation plan for dealing with an increase in contaminants in the soil
4. Circular economy
Items highlighted by new directive
The Circular Economy Action Plan (CEAP) aims to transform the EU from a linear economy to a circular one. This means utilising products which are more environmentally friendly and that can be recycled. Examples include:
a. Water recovery and recycling
b. Waste/wastewater treatment and recycling
c. Renewable energy for production purposes
Potential implications
There is an increased likelihood that agri-processors and pharmaceuticals will eventually have to (if they have not already) furnish the EU market with information regarding product traceability, manufacturing processes, sustainability practices and product life cycles to ensure they meet the EGD regulations. These standards on environmental sustainability regarding production and processing will be higher than what they currently are now. This may also mean that operating costs increase in the short term in order to operate and produce sustainably.
5. Climate change
Items highlighted by new directive
The EU’s Effort Sharing legislation, which covers the EU’s climate change efforts sets out green house gas targets relating to the management of agricultural inputs and outputs such as:
a. Manure and fertiliser emissions (carbon dioxide and methane)
b. Nitrogen management (nitrous oxide)
c. The supply of clean and renewable energy to power industries (carbon neutrality)
Potential implications
Agri-processors and pharmaceuticals will need to make a shift to clean renewable power in order to reduce their carbon footprint. This will result in additional capital outlay in the short term, but lower operating costs regarding power in the medium to long term. The choice of fertiliser and its effect on green house gas production will also have to be closely monitored.
References
1. http://www.waterjpi.eu/resources/newsletter/2021/newsletter-january-2021/revised-drinking-water-directive
2. https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en
3. https://environment.ec.europa.eu/topics/water/drinking-water_en
4. https://unece.org/environment/news/european-union-adopts-new-drinking-water-directive-protocol-water-and-health-has
5.https://www.rehva.eu/fileadmin/user_upload/CELEX_32020L2184_EN_TXT.pdf
6. https://environment.ec.europa.eu/news/pharmaceuticals-environment-new-report-shows-good-progress-implementing-strategy-2020-11-25_en
7. https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52019DC0128&from=EN
8. https://environment.ec.europa.eu/strategy/chemicals-strategy_en
9. https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2173
10. https://www.green-cape.co.za/assets/The-European-Green-Deal-Context-challenges-and-opportunities-for-South-African-SMEs-operating-in-the-green-economy-October-2021.pdf
11.https://www.europeanlandowners.org/images/Matthews_ELO_paper_23_May_2022_1.pdf
12. https://carnegieendowment.org/2021/10/18/what-does-european-green-deal-mean-for-africa-pub-85570
13.https://www.europarl.europa.eu/RegData/etudes/STUD/2022/729156/IPOL_STU(2022)729156_EN.pdf
14. https://food.ec.europa.eu/horizontal-topics/farm-fork-strategy_en
15.https://www.europarl.europa.eu/RegData/etudes/STUD/2020/629214/IPOL_STU(2020)629214_EN.pdf
16. https://environment.ec.europa.eu/topics/circular-economy_en
17. https://www.cbi.eu/market-information/eu-green-deal-how-will-it-impact-my-business#how-does-the-european-green-deal-impact-imports-to-europe
18. “Emerging Pollutants: Protecting Water Quality for the Health of People and the Environment” https://iwraonlineconference.org
19.https://www.researchgate.net/publication/332270086_Pesticides_from_the_EU_First_and_Second_Watch_Lists_in_the_Water_Environment
20. K. Ndue and G. Pá., l “European Green Transition Implications on Africa’s Livestock Sector Development and Resilience to Climate Change”
21. S. Sorlini “Drinking water – legislation, current solutions in Drinking Water Supply Systems and future challenges”
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