EU wastewater directive faces legal challenge over industry funding model

The European Union's wastewater directive is facing legal scrutiny regarding its funding model for removing micro-pollutants. Juliane Kokott, an Advocate General at the Court of Justice of the European Union, has proposed the annulment of key provisions that require the pharmaceutical and cosmetic industries to cover at least 80 percent of the costs for quaternary wastewater treatment.

This treatment stage is designed to remove micro-pollutants, such as drug residues and cosmetic ingredients, which current facilities often fail to capture. The directive utilizes the Extended Producer Responsibility (EPR) principle, based on the 'polluter pays' concept.

Industry groups, including Medicines for Europe, have called on the European Commission to halt the implementation and re-examine the model. Manufacturers warn that because the prices of prescription drugs are regulated by states, they cannot easily pass these additional costs to consumers. This could lead to decisions regarding which medicines are produced, in what quantities, and where future investments are made, potentially impacting market availability.