The new Urban Wastewater Treatment Directive (UWWTD), which came into force at the beginning of 2025, requires the pharmaceutical and cosmetic industries to jointly cover at least 80% of the costs linked to the removal of micropollutants, based on the polluter pays principle.
Controversy over cost allocation
According to the EU, 59 percent of micropollutants in water treatment stations come from pharmaceutical products and 14 percent from cosmetics.
“We believe that the Directive runs counter to key principles of EU Treaties: polluter pays, proportionality and non-discrimination,” EFPIA said in media statement.
With this legal action before the European courts, the trade association representing the pharmaceutical industry operating in Europe wants greater clarity on how the EU’s decision to target two sectors — the pharmaceutical and cosmetic industries — aligns with the “polluter pays” principle.
“Despite requests, EFPIA has been unable to see the data and methodology used by the European Commission to reach the decision,” highlighted the organisation.
Are some sectors unduly spared?
EFPIA argues that other sectors should be considered and that non-discrimination requires they pay according to the volume of micropollutants for which they are responsible.
“We view the Directive as violating key principles of the European Union. There is no transparency, as we still lack access to the data and methodology used by the European Commission in deciding to make only pharmaceutical and cosmetics industries responsible for the costs of treating urban wastewater,” said Steffen Saltofte, CEO of generic drug manufacturer Zentiva.
The European Commission’s impact study estimates the annual cost of micropollutant treatment at EUR 1.2 billion across the EU, but the pharmaceutical and cosmetics industries consider this a major underestimate.
