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One size doesn’t fit all

 L’Europe cède un avantage à la Chine

Les décideurs politiques de tous bords devraient adopter une approche basée sur les risques pour la réglementation des PFAS.

La Commission européenne s’est engagée à éliminer progressivement les substances chimiques artificielles appelées substances per- et polyfluoroalkyles, également connues sous le nom de PFAS.

De l’autre côté de l’Atlantique, le Congrès américain et des législateurs au niveau des Etats individuels tentent d’atteindre des objectifs similaires par le biais du PFAS Action Act, qui attend maintenant un vote final au Sénat. Sans surprise, l’interdiction a été réclamée par les groupes écologistes, qui ont tendance à confondre danger et risque, et favorisent l’approche consistant à « tout interdire ».

Les PFAS se retrouvent, entre autres, dans les articles ménagers et autres produits de consommation, les équipements médicaux, les emballages alimentaires et les mousses anti-incendie. Leur popularité s’explique par leurs qualités uniques, telles que leur résistance chimique et leur capacité à réduire la tension superficielle. L’efficacité des PFAS a rendu leur remplacement difficile et coûteux.

Dans le même temps, l’utilisation des PFAS a été associée à divers effets néfastes, tels que l’infertilité, les maladies de la thyroïde et du foie, lorsqu’ils sont déversés de manière inappropriée dans l’approvisionnement en eau. Ces préoccupations sont justifiées et ne doivent pas être sous-estimées ou déformées. Cependant, comme pour presque tout, c’est le degré d’exposition qui compte dans une évaluation basée sur le risque, par opposition à l’évitement total du danger. Étant donné que plus de 4 700 produits chimiques appartiennent au groupe des PFAS et qu’ils présentent tous des niveaux de risque et de danger différents, nous devons veiller à ne pas les mettre tous dans le même panier.

L’Union européenne vise à diviser ces produits chimiques en deux groupes : les produits essentiels et les produits non essentiels, mais à terme, tous devraient être interdits. Cela dit, les PFAS ont déjà été en grande partie retirés de la circulation lorsqu’ils ne sont pas nécessaires. Un profil toxicologique des perfluoroalkyles publié en 2018 par l’Agency for Toxic Substances & Disease Registry indique que « les rejets industriels ont diminué depuis que les entreprises ont commencé à éliminer progressivement la production et l’utilisation de plusieurs perfluoroalkyles au début des années 2000 ».

Rien ne garantit que l’élimination progressive des PFAS nous rendra plus sûrs. L’UE et les Etats-Unis ont tous deux interdit le bisphénol A (BPA), une substance chimique présente dans les plastiques, dans les biberons, au motif qu’il présente des risques pour la santé des enfants. Cependant, le BPS et le BPF, qui sont généralement utilisés comme substituts, se sont révélés tout sauf inoffensifs. En fait, même une faible exposition au BPS a eu un impact significatif sur le développement des embryons.

Une interdiction totale de l’utilisation des PFAS ne signifie pas nécessairement que ces substances chimiques artificielles cesseront d’être produites, mais simplement que d’autres pays, comme la Chine, augmenteront probablement leur production. Et compte tenu de la nécessité des PFAS pour les équipements médicaux et les biens de consommation, une interdiction de l’UE ou des Etats-Unis serait très problématique.

Pour les semi-conducteurs, ceci est un problème considérable. D’où les fabricants de puces européens importent-ils les PFAS, si la production européenne cesse ? Ironiquement, ils européens devraient importer la majeure partie de ce déficit de Chine, ce qui va complètement à l’encontre de l’objectif de relocalisation de la production en Europe. Cela s’est déjà produit lorsque l’usine belge de 3M a été temporairement fermée. Les principaux producteurs coréens de puces, comme Samsung et SK Hynix, ont acheté des PFAS à des fournisseurs chinois pour éviter les pénuries de production.

Certains de ces composés chimiques des PFAS sont essentiels pour les blouses et les draps résistants à la contamination, les dispositifs médicaux implantables, les endoprothèses, les patchs cardiaques, les filtres pour conteneurs stériles, les systèmes de récupération des aiguilles, les trachéotomies, les fils guides de cathéter pour la laparoscopie et les revêtements de boîtes d’inhalation. Déclarer tous ces composés chimiques dangereux, sans évaluer le risque associé à chaque utilisation, met en péril les technologies médicales qui sauvent des vies et la sécurité des patients.

Du côté des produits de consommation, comme les téléphones portables et la technologie 5G continuent de se développer et exigent des vitesses plus rapides dans des tailles plus petites, ces composés sont impliqués dans tout, de la production de semi-conducteurs à l’aide au refroidissement des centres de données pour l’informatique en nuage (cloud computing). Le retrait forcé de ces produits chimiques du processus de production, en particulier parce qu’ils présentent très peu de risques pour l’homme, perturbera considérablement les chaînes d’approvisionnement et augmentera les coûts pour les 472 millions d’Européens qui utilisent actuellement un smartphone.

Les décideurs politiques de tous bords devraient adopter une approche basée sur les risques pour la réglementation des PFAS, plutôt que de se laisser piéger par les appels des activistes écologistes à les éviter complètement. Bien que certains de ces produits chimiques doivent être interdits ou limités, les interdire tous pourrait nous laisser avec des alternatives encore pires qui pourraient avoir un impact plus important sur notre santé et notre bien-être. Ces produits chimiques nécessitent une approche réglementaire très rigide et détaillée, pas une approche « taille unique ».

PFAS ban could do more harm than good

News broke last month that 3M has agreed to pay out $10.3 billion in settlement payments in response to lawsuits claiming that their per- and polyfluoroalkyl substances, or PFAS, contaminated drinking water. The funds are supposed to be used to filter PFAS from water supplies where it has been detected, and test for other sites of contamination. 

This is especially important for Mainers, where legislators have begun a process to ban PFAS in consumer products sold in the state. One might think that the 3M settlement proves Maine is on the right track, but it isn’t that simple.

Even the mention of toxic chemicals interacting with the environment is frightening, but 3M’s settlement is not like the example of DuPont, a multinational chemical company that released PFAS, which have contaminated groundwater, into a North Carolina river. The case looms large in the minds of everyday people, in much the same way as Norfolk Southern’s catastrophic train derailment in East Palestine this past February. 

The lawsuits for 3M stem primarily from communities that have been contaminated by the use of firefighting foam containing PFAS. This is an important distinction because when it comes to regulating PFAS and how it is both used and produced firefighting foam is a unique challenge. 

It’s a challenge because there really is no way to contain the foam after use. When these foams are used to put out jet fuel fires at military bases or airports, the top priority is rightly to put out the fire. The chemicals used to suppress the blaze leech into the ground, which is how water becomes contaminated. Shifting away from the regular use of these foams will be a difficult, but necessary step in protecting drinking water.

There are a variety of uses for PFAS that don’t represent nearly the same risk as firefighting foams, and those should not be restricted in the same way. While PFAS are often used for more trivial things like waterproof jackets and non-stick cookware, they are also used for necessary medical devices and the production of semiconductors. 

The Federal Drug Administration has continuously approved both drugs and devices that contain PFAS. Most people don’t seem to know that the medical community is heavily reliant on products using PFAS for the production of medical implants like vascular grafts, stent grafts, surgical meshes, catheter tubes and wiring, as well as heart patches. 

Today it is estimated that roughly 10 percent of Americans have implantable medical devices, many of which rely on PFAS and are approved by the FDA. In fact, the $72.2 billion implantable medical devices market is expected to grow significantly as the American population grows older on average. Those aging individuals are very likely to come in contact with numerous prescription drugs for inflammation, cholesterol and arthritis that contain PFAS.

For semiconductors, manufacturers say PFAS are a vital part of the production process, primarily because of their chemical resistance and surface tension-lowering properties. This makes the chips durable and resistant to liquids and erosion. Efforts to ban PFAS outright from all consumer products, like has been suggested in Maine, may seriously jeopardize chip manufacturing and ultimately make the chip shortage much worse before it gets better. 

This is where the PFAS debate gets geopolitical. You have states like Maine looking to ban PFAS, while the federal government is promoting domestic microchip production.

It may be that banning PFAS production in the United States doesn’t eliminate the demand for PFAS throughout the supply chain. Microchip producers may end up importing these chemicals to avoid a domestic chip shortage. This is no easy task, given that in 2019, the most recent year for which production data are available, the U.S. domestically produced 625 million pounds of PFAS and imported only 54 million pounds. A 571 million pound shortfall is a significant sum, much of which would likely be imported from China. Not ideal.

While protecting drinking water is a noble goal, and one worth pursuing, legislators must not sacrifice key medical necessities and semiconductor production in the process. Doing so would do far more harm than good.

Originally published here

The devil’s bargain on eliminating PFAS

Per- and polyfluoroalkyl substances (PFAS) have been headlining newspapers across the nation as of late. States like Maine have pushed rules and regulations to limit the presence of PFAS in consumer products; the EPA recommended PFAS water limits that are near zero, and class action lawsuits have embroiled producers.

PFAS, a diverse group of man-made chemicals used in everything from microchip production to pharmaceuticals and medical implants, are under the gun, to put it mildly. In fact, St. Paul-based 3M, in response to the mounting pressure, announced in December that it would be seeking to leave the market altogether with hopes of no longer producing any PFAS at all by 2025.

Critics of the current regulatory approach to PFAS have warned that eliminating the production of PFAS in the U.S. entirely would create huge supply chain disruptions for everyday consumer goods, and create a laundry list of externalities. In fact, it would appear that U.S. Rep. Betty McCollum sees the writing on the wall and the disaster that will unfold if the U.S. produces no PFAS whatsoever. The Democratic congresswoman from Minnesota’s Fourth District explained that 3M leaving the market presents a national security risk, primarily because of how vital PFAS is for chip production. Congress, and the Biden administration, allocated $53 billion to increase chip production in the U.S., with the hopes of ending U.S. reliance on China for chips.

This is where the PFAS debate gets geopolitical. McCollum went so far as to say that the Biden administration could mandate that 3M continue to produce PFAS, and use the Defense Production Act, which requires private companies to prioritize the government’s needs.

So on one hand, we have government agencies significantly limiting PFAS in the U.S., while at the same time Congress may counter those efforts to require PFAS to continue to be produced domestically. It would appear that legislators are starting to realize that phasing out PFAS production in the U.S. doesn’t eliminate the demand for PFAS along the supply chain, which means that microchip producers, for example, will have to import these chemicals to avoid a production shortage. This is no easy feat, given that in 2019, the last time production data was available, the U.S. domestically produced 625 million pounds of PFAS, with only 54 million pounds being imported. A 571 million pound shortfall is a significant sum.

And where would U.S. chip manufacturers import PFAS from if U.S. production ceased? Ironically, U.S. chip producers would have to import the bulk of that shortfall from China, which completely undermines the purpose of reshoring chip production in the U.S. We know that this is likely what will happen because it already happened in Europe when 3M’s Belgium plant was temporarily shut down. Major Korean chip producers like Samsung and SK Hynix purchased PFAS from Chinese suppliers to avoid production shortages.

It certainly makes great sense to try to decouple from China in regards to chips, especially with increased tensions over Taiwan’s autonomy and Biden’s commitment to militarily defend Taiwan if the People’s Republic of China does invade. That is something that is becoming increasingly more likely with China’s President Xi Jinping instructing China’s military to be prepared for an invasion by 2027.

If U.S. chip producers end up having to import PFAS to produce chips, the U.S. will be setting the table for a scenario eerily similar to Europe’s reliance on Russian gas. If, or when, China invades Taiwan, the U.S. would be in an active armed conflict with a country who is now the primary supplier of vital inputs for microchips. In that scenario, those imports likely end, either by decision from China, or sanctions against China, grinding the supply chain to a halt.

And the cost of this would be astronomical. For example, chip shortages cost the U.S. economy $240 billion in 2021. The shortage heavily affected the auto industry, costing manufacturers $210 billion in revenue as cars sat in lots waiting for chips to be installed. A true national chip shortage, not just with cars but with all products reliant on chips, would be so costly that it is difficult to actually forecast.

At the end of the day, PFAS policy needs to encompass the full view on costs and benefits, taking into account the emerging geopolitical discussion. There has to be a path forward that allows for responsible production, ensuring clean drinking water, while avoiding a wholesale chip shortage and the chaos that would ensue.

Originally published here

EPA Guidelines on PFAS Are Lacking

The Environmental Protection Agency in mid-March announced its first set of federal limits on the presence of per- and polyfluoroalkyl substances (PFAS) in drinking water. Recent headlines show why the EPA is taking a clean drinking water approach to how PFAS is regulated in the United States.

That said, the EPA’s proposed limits, which are essentially near zero, no more than 4 parts per trillion for both perfluorooctanoic acid (PFOA) and perfluorooctane sulfonic acid (PFOS), are a radical departure from the limits established by other health agencies and are at odds with the Food and Drug Administration’s assessment on PFAS exposure.

Take, for example, how the EPA’s new limits compare to New York state, the World Health Organization, or the Canadian government, none known for being reckless regarding health guidelines and precautions. New York’s guidelines for PFAS exposure and drinking water, at 10 parts per trillion, is 2.5 times higher than the EPA’s new limit. The World Health Organization’s proposed limit is 25 times higher than the EPA at 100 parts per trillion. At the same time, Canada’s guidelines are 50 times higher for PFOA and 150 times higher for PFOS.

The huge variations in exposure guidelines suggest there is much work to be done when it comes to what the appropriate thresholds are to ensure that drinking water is safe. And unfortunately, that confusion only worsens when you factor in how the FDA perceives PFAS exposure and its associated risks.

The FDA, the regulatory body responsible for ensuring that pharmaceuticals and medical devices work and that their health benefits outweigh their known risks, has continuously approved both drugs and devices containing PFAS.

Most don’t know that the medical community relies heavily on PFAS products. Take, for example, medical implants like vascular grafts, stent grafts, surgical meshes, catheter tubes/wire and heart patches. It is estimatedthat 8 percent to 10 percent of Americans have implantable medical devices, many of which rely on PFAS and are approved by the FDA. In fact, the implantable medical devices market, valued at $72.2 billion, is expected to grow significantly as the American population ages.

Drugs containing PFAS, again approved by the FDA, include but are not limited to tachyarrhythmias (flecainide), antidepressants (fluoextine), non-steroidal anti-inflammatories (celecoxib), antibiotics (levofloxacin), rheumatoid arthritis therapeutics (leflunomide), cholesterol-lowering agents (atorvastin) and COVID-19 antivirals such as Paxlovid.

For all those drugs and devices, the notoriously over-cautious FDA has clearly stated that whatever PFAS exposure exists with these products, they are safe to the point where the benefits far outweigh the risks. Simply put, the presence of PFAS for these drugs and devices passes a safety check and a cost-benefit analysis.

This leads to some serious questions regarding how the EPA arrived at its near-zero threshold and why its assessment is at odds with other government agencies, global health bodies and their colleagues at the FDA.

And that doesn’t even address the externalities of hard-line policies on PFAS. The EPA’s guidelines, alongside legislative efforts like the PFAS Action Act, could seriously jeopardize American capacity to produce lifesaving drugs and devices and seriously undercut the United States’ ability to domestically produce semiconductors. These chemicals are vital for the production of semiconductors, predominantly the use of coolant, and if the EPA and Congress continue down this path, consumers will be in a world of trouble.

We know this is a predictable outcome because this is precisely what happened in Europe, where officials in Belgium paused production at a chemical plant in response to the tightening of environmental regulations. Reporting by Business Korea highlighted that semiconductor producers had only 30 to 90 days of coolant inventory left before they would encounter serious production problems. 

For reference, the chip shortage of 2021 cost auto manufacturers $210 billion in lost revenue as cars sat in lots waiting for chips to be installed. Given that these chips are used in computers, smartphones, consumer electronics, appliances and medical equipment, an actual national shortage would be an economic disaster. If any conflict arises in Taiwan, a global producer of semiconductors, the U.S. economy would grind to a halt.

Rather than doing what appears to be guesswork on safe levels of PFAS exposure, the EPA should instead consult its colleagues domestically and abroad, come to a clear consensus on where and when risks may arise, and regulate from there, taking into account the costs and benefits of their policy suggestions.

Originally published here

A looming PFAS ban threatens Europe’s economic and energy security.

Europe’s stance on per- and polyfluoroalkyl substances (shortened to PFAS) has only grown harsher over time. The first wave of limitations began in 2009, when the  European Chemicals Agency restricted perflurooctane sulfonic acid, a subtype of PFAS, in line with the international Stockholm Convention. 

The elimination of another (perfluorooctanic acid)  soon followed under the European Persistent Organic Pollutants Regulation in 2020. This year, Germany, Norway, and Sweden went further and called on the European Commission to phase out all PFAS in Europe. 

Eliminating so-called “forever chemicals” might seem like the sensible thing to do. After all, the substances are known to have seeped from water sources into human bodies, raising fears of adverse health effects. High concentrations of some of these materials in the bloodstream can cause liver, heart, kidney, or lung damage, disrupt neurological and immune systems, interrupt normal hormonal functions, and even lead to cancer. PFASs are also a potential environmental threat through water and soil pollution. And, true to their name, PFAS materials hardly degrade over time. Instead, they break down into other PFAS compounds via digestion or environmental wear and tear. 

However, removing the substances can be far more harmful than the presence of the chemicals themselves. 

PFASs are integral to any 21st-century high-tech economy. Semiconductors require a coating of fluoropolymers, yet another PFAS, to withstand the intense chemical treatments involved in their manufacturing process. Without semiconductors, we cannot have phones, computers, laptops, TVs, or any modern-day appliance. 

A world with zero risks is impossible. Instead of hopelessly trying to build one, Europe should weigh the pros and cons of PFAS on a case-by-case basis and settle on the least harmful option.

Removing PFAS wholesale will create chaos by forcig integrated circuit suppliers to look for substitutes where none are available. The Belgian government saw the consequences of this when a factory in Antwerp shut down for seven months in response to tightening regulations. Doing the same to the microchip industry, currently suffering from supply chain difficulties, will cripple a 49 billion EUR European industry and nullify investments promised by the 40 billion EUR European Chip Act

Silicon chips would be just the start. A full PFAS ban is a danger to Europe’s energy security. The same group of highly resistant and flexible materials provides thecoating for the batteries and hydrogen fuel cells powering electric vehicles. Fluoropolymers help build wind turbines, and fluorinated gases help cool downheating pumps. Removing them creates artificial scarcities in renewables, making Europe’s energy needs (not to mention its climate goals) all the more unmanageable. 

The EU’s remaining alternative is to procure the compounds or their replacements from China, already the world’s biggest exporter of rare earth minerals. This would undermine Europe’s strategic autonomy

A world with zero risks is impossible. Instead of hopelessly trying to build one, Europe should weigh the pros and cons of PFAS on a case-by-case basis and settle on the least harmful option. Some products, such as firefighter foam, could be phased out without severe repercussions. In the case of others (semiconductors and energy supplies, among them), it is better to minimize excessive exposure by policing company excesses. 

Strict punishments for dumping have proven more than adequate, substantially reducing water PFAS presence since the early 2000s. That is a healthier and better future we can all get behind. 

Originally published here

Intel’s microchip expansion could fail if Congress bans this crucial set of chemicals

Opinion: A bill before Congress calls for a heavy-handed ban of PFAS, a set of chemicals that are vital to semiconductor production.

A severe shortage in computer chips roiled the U.S. economy last year, costing auto manufacturers $210 billion in revenue alone as cars sat in lots waiting for chips to be installed.

Other sectors took hits, too, given that semiconductor are used in everything from computers, smartphones, consumer electronics to appliances and medical equipment. 

Luckily for consumers, in response to the shortages, Intel has broken ground on two chip manufacturing plants in Arizona to help secure supply chains and prevent further disruptions. When all is said and done, Chandler will be home to six semiconductor production facilities, employing around 15,000 people

The size and scope of these investments cannot be understated.

The growth experienced in Arizona’s chip manufacturing facilities may be stifled, however, if Congress proceeds with heavy-handed bans for perfluoroalkyls (PFAS) under the PFAS Action Act.

We need PFAS to make semiconductors

Perfluoroalkyls, a grouping of 4,000-plus manmade chemicals, are a vital part of the semiconductor production process – primarily because of their chemical resistance and surface tension-lowering properties. This makes the chips durable and resistant to liquids and erosion. 

The PFAS Action Act could seriously jeopardize chip manufacturing, and ultimately make the chip shortage much worse before it gets better. These chemicals are vital for the production of semiconductors, predominantly the use of coolant, and if Congress continues down the path of wanting to ban PFAS then consumers will be in a world of trouble.

What’s at stake:Separate semiconductor bill could be an economic boon

We know that this is a predictable outcome of heavy-handed PFAS policy because it is exactly what we are seeing in Europe, where officials in Belgium paused production at a chemical plant in response to the tightening of environmental regulations.

Reporting done by Business Korea highlighted that semiconductor producers had only 30 to 90 days of coolant inventory left before they would encounter serious production problems.

If Congress continues down the path it is on, it is naive to think that disruptions like this aren’t headed for the American market, with U.S. consumers bearing the brunt of the chaos. 

Keep them out of water. Don’t ban them outright

This isn’t to say that PFAS producers should be able to operate without any regard for the environment and PFAS exposure. In fact, the opposite is true.

Regulating PFAS has to be done from the perspective of clean drinking water, as opposed to declaring all PFAS chemicals hazardous. Ensuring proper production standards to avoid dumping or leakage helps solve the problem of contaminated water, without resorting to an outright ban of PFAS.

For chip production, this is vital, given that there are no viable alternatives to using PFAS in the production process.  

This is especially important in the context of everyday consumer products that rely on these chemicals in the manufacturing process. If production standards for PFAS are upheld, and enforced, we can tackle the clean drinking water issue while allowing for PFAS to be used where it presents little to no risk to consumers, like the production of semiconductors. 

This is the balancing act that Congress has to consider when deciding what is next regarding PFAS. It needs to evaluate the emerging science on PFAS, evaluating not just hazard but, more importantly, the exposure levels that make PFAS risky for Americans and from where those exposures come. 

PFAS Action Act could doom chip production

In December, the Australian National University published a study on PFAS. The findings provide some helpful insights into what anti-PFAS efforts should focus. 

One of the key findings was that exposure to PFAS in affected communities almost entirely came from water and firefighting foam. PFAS contamination was a result of poor production practices, or criminal dumping, and when PFAS firefighting foam leeched into the ground.

Those who drink contaminated water, or eat locally grown food that is contaminated, are at the highest risk of PFAS-associated health problems. This suggests that poor production processes carry most of the risk, while the risks associated with consumer items and other PFAS applications are limited, like the use of PFAS in the production of semiconductors. 

A clean drinking water approach to PFAS is entirely appropriate, but getting there cannot, and should not, result in outright production bans.

If Congress can narrow its sights on proper production processes, American consumers can avoid water contamination, without the chaos of an exacerbated semiconductor shortage and job losses in Arizona.  

But if Congress proceeds with the PFAS Action Act, Intel’s investment in Chandler and its plans to boost domestic chip production may be destined to fail. 

Originally published here

Why Gen Z Should Ditch ‘Virtue’ in Consumer Purchases and Embrace the Trader Principle

The Peter Principle is playing out in Americans’ purchasing decisions. Here’s why that’s creating social disharmony.

In 1969, Laurence J. Peter published “The Peter Principle,” which asserted that “In a hierarchy every employee tends to rise to his level of incompetence.” Now, although Dr. Peter claimed to be kidding, we often see the Peter Principle play out—productive employees will be promoted over time, taking on new roles and responsibilities which they are sometimes ill equipped to handle. According to one study, the data were clear: not all great salespeople make great sales managers.

Nevertheless, people like being promoted and tend to take pride in their positions, even when done poorly. If this is how we feel in relation to our employment patterns, perhaps the same can be true for our consumer habits, particularly since Dr. Peter asserted that his principle was “the key to an understanding of the whole structure of civilization.”

So, to shift from internal matters and production practices within an organization to external matters and consumption practices for a firm’s customer base, it seems the Peter Principle can still apply.

As our earning power increases, so too does our purchasing power, and we go from smaller simpler purchases to suit our needs (what groceries should I get for dinner tonight) to complex and bigger purchases to suit our wants (what Traeger grill should I get for the summer season). And given that we lack the expertise for truly knowing the worth of all our product purchases, we are guided by reviews, the news, and marketing messages.

Marketers promote value, or the perception of it, to consumers and change positioning statements and product features according to changing preferences. For instance, mayonnaise marketing campaigns used to focus on flavor, now they focus on nutrition—such as including avocado oil or emphasizing the presence of Omega-3. The recipe tweaks and promotion campaigns tell us we can all feel less guilty about the overuse of this sandwich spread (even though the avocado version isn’t really healthierand few of us know why Omega-3 matters).

Nevertheless, the more we can spend, the more options we want. And although consumers are more educated today than ever before, purchase decisions are becoming increasingly based on emotions—and marketers are leveraging this fact.

Consumers in advanced markets look for psychological attributes rather than primary ones; that is, feelings trump function. This is why people will pay big bucks for a Prada bag even though a Prada knockoff would likely suffice at a fraction of the price. Brands like Prada sell on the basis of exclusivity and esteem, which is why premier labels would rather destroy excess inventory than donate it.

Now all of this is not to say that if someone wants to spend a chunk of change on an expensive purse, they need to justify doing so—it is their money, they can do what they like. Consumers should maintain authority over their purchase decisions. However, consumers should also be educated about when the Peter Principle may be setting in, especially when basing their purchases according to a company’s purpose rather than its product offerings.

For example, take Patagonia patrons. By buying Patagonia, they are showing support for (allegedly) “the world’s most responsible company.” Patagonia is a company that cares for the environment and inclusivity so much so that it has even redirected a greater amount of its marketing resources towards forms of activism rather than the advertising of its products. It has even gone so far as to limit who it will sell to if the customer doesn’t “prioritize the planet.”

Its morality marketing has swooned well-off consumers and its success rates in sales have prompted others within the industry to follow suit by putting “the climate” before the company and its customers.

What is rather laughable though is that a truly environmentally friendly and inclusive business would be your community thrift store—selling what is already in existence and at a cost conducive to nearly every budget. But don’t even think about donating your used Patagonia to those in your local community, instead send it back to Patagonia to receive credit toward more of their products via the Worn Wear collection. Now, instead of getting a windbreaker vest for over $100, you can get a used one for a cool $69.

Nobel Prize-winning economist Milton Friedman would surely call Patagonia’s efforts for social responsibility a lucrative form of window-dressing, but it is more severe than that, particularly when consumers are ill-informed on the positions Patagonia is postulating.

For instance, Patagonia has denounced the use of PFAS despite incorporating this chemical compound in its own products as a moisture barrier for its durable water repellent product offerings. PFAS is found in many household items and although misuse and overuse of these ‘Forever Chemicals’ is problematic, prohibiting use of them in proper form is also problematic given the benefits they bring.

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Bill Would Give US Production of Vital Electronics to China

The consequences of a bill in Congress will make you want to buy a new phone and laptop, provided that inflation leaves you with enough disposable income to do that.

While Americans are dealing with the effects of record-high gas prices, Democrats in Congress are suggesting the so-called PFAS Action Act, which would declare perfluoroalkyl and polyfluoroalkyl substances as hazardous chemicals. This legislation would open the gates for a ban on a large set of substances needed to produce everything from consumer electronics and vital medical equipment.

In an effort to preserve clean drinking water and protect consumer health, Democrats (and a handful of Republican co-sponsors of the bill) are throwing out the baby with the bathwater. PFAS, according to the CDC, englobes over 9,000 chemicals, which all have varying uses and severity.

Lawmakers in Washington are relying on cases of malpractice, when companies violated their duty to protect local communities by failing to ensure safe use, transport and disposal, to pull the rug out from this large set of substances.

Ultimately, why care? No citizen likes the idea of potentially toxic chemicals being in use at all, so why not just endorse this piece of legislation?

In fact, while within the set of 9,000 chemicals, some of them may very well need phasing out, others are essential to key American industries.

For instance, these chemicals are vital for the production of semiconductors, predominantly the use of coolant, and a ban would worsen the already existing chip shortage, which affects anything from mobile phones to electric cars. Computer chip shortages cost the U.S. economy $240 billion in 2021.

That said, waiting another six months for your electric vehicle or stomaching a significant price increase on your latest smartphone is just the tip of the iceberg. While regulators in the United States or Europe may decide to ban PFAS, manufacturers are unlikely to follow suit.

In fact, Beijing is famously less concerned than Western nations when it comes to chemical regulation, and would be more than happy to rake up the market shares made available by destructive environmental restrictions.

What message is Congress sending to American companies by considering this bill? Intel has announced it will spend $20 billion on a chip factory in Ohio, to stop the increasingly endemic lack of semiconductors. Presumably, Washington is thanking them by stripping the company of the tools to manufacture components and outsourcing the task to producers abroad.

When dealing with consumer goods, we should prefer that they are made with a transparent and reasonable regulatory framework that punishes wrongdoing to the full extent of the law, instead of relying on imports from nations that do not share our vision of safe manufacturing.

Originally published here

The conflict between government agencies regarding PFAS

As discussed by the Star Tribune’s June 27 editorial (“Needed action on ‘forever chemicals'”), the Environmental Protection Agency is seeking to create clean drinking water thresholds on per- and polyfluoroalkyl substances (PFAS). Given the history of egregious cases of chemical dumping, like what was done by Dupont, popularized by the film “Dark Waters” with Mark Ruffalo, one can see why the EPA is taking such an approach to how PFAS are regulated in the United States.

Strangely enough though, the EPA’s approach to PFAS is at odds with another government body, the Food and Drug Administration.

The FDA, the regulatory body responsible for ensuring that pharmaceuticals and medical devices work and that their health benefits outweigh their known risks, has continuously approved both drugs and devices that contain PFAS. Most don’t know that the medical community is heavily reliant on PFAS products. Take, for example, medical implants like vascular grafts, stent grafts, surgical meshes, catheter tubes/wire and heart patches. It is estimated that 8% to 10% of Americans have implantable medical devices, many of which rely on PFAS and are approved by the FDA. In fact, the implantable medical-devices market, valued at $72.2 billion, is expected to grow significantly as the American population continues to get older.

Drugs containing PFAS and conditions with treatments that introduce the presence of PFAS include, but are not limited to, tachyarrhythmias (flecainide), antidepressants (fluoxetine), nonsteroidal anti-inflammatories (celecoxib), antibiotics (levofloxacin), rheumatoid arthritis therapeutics (leflunomide), cholesterol-lowering agents (atorvastin) and even COVID-19 antivirals such as Paxlovid.

For all of those drugs and devices, the notoriously overcautious FDA has clearly stated that whatever PFAS exposure exists with these products, they are safe to the point where the benefits far outweigh the risks. Simply put, the presence of PFAS for these drugs and devices passes a safety check and a cost-benefit analysis.

What we have here is two government agencies taking drastically different approaches to the issue of PFAS. On one hand, the FDA is doing a cost-benefit analysis and approving the use of PFAS across the medical sector, while the EPA is seeking to enact drinking water standards that are mutually exclusive to the FDA’s conclusions.

So how should regulators proceed given that the left hand and right hand of the federal government appear to be at odds with each other? One key step forward would be to individually assess each chemical within the PFAS umbrella, identify where hazards exist and calculate where Americans are actually at risk — with “risk” being the hazard present multiplied by the exposure levels.

After doing so, regulators should focus on ensuring proper production practices to avoid instances of dumping, and severely punish those companies caught being reckless in the production or disposal process. That is the approach that can keep Americans safe and their drinking water clean, without running the risk of having the regulatory system be so stringent that production ceases and American patients are left without the lifesaving drugs and devices they need.

Luckily, some voices of reason have emerged in Congress, like that of Rep. Larry Buschon of Indiana. As a heart surgeon by trade, he has rightfully pointed out that the heavy-handed approach would put lifesaving medical technologies at risk. Hopefully, more will listen, and the federal government, in coordination with state regulators, can both limit PFAS exposure where it is dangerous and allow for it to continue to be used where safe.

Originally published here

EU’s green agenda and PFAS ban are incompatible

As part of the climate agenda, the European Union and member states have advocated the phasing out of gas-powered vehicles by 2035. The goal is to have at least 30 million electric vehicles on European roads by 2030, which would be a 2900% increase from the current amount. With demand for electric vehicles soaring in the EU, domestic industries are looking for innovative ways to establish supply chains for batteries and other components.

On the one hand, the EU seeks to boost the market for electric vehicles to achieve its climate targets. On the other hand, the proposed blanket PFAS (Per- and Polyfluoroalkyl Substances) ban, pledged by the European Commission, will make it impossible to manufacture EVs in the EU.

PFAS are key to the production of EVs. However, instead of considering the spillover effects of banning over 4000 chemicals that carry individual risks, the EU decided to take the same approach as the US move towards banning all of them. In the US, the PFAS Action Act which would heavily restrict all these substances is awaiting the final decision in the Senate. Both the EU and US are on the verge of making the same policy mistake that will achieve nothing except make consumer products more expensive and hinder innovation.

PFAS are used to produce life-saving medical equipment and are vital for contamination-resistant gowns, implantable medical devices, heart patches, etc. These chemicals are also widely used in green technology production. In particular, solar panels, wind turbines, and lithium-ion batteries.

Fluoropolymers (one specific class of PFAS) are an essential part of green technology. Fluoropolymers are used to produce lithium batteries, the power source behind electric vehicles. They are durable, heat and chemical resistant, and have superior dielectric properties, all of these qualities make it hard for other chemicals to compete. If PFAS are banned as a class, the green ambitions of switching to electric vehicles would be extremely difficult to turn into policy. The blanket PFAS ban would cause further disruptions in the EV supply chain, increasing costs for consumers and ultimately making them less attractive as an alternative to gasoline vehicles.

Fluoropolymers are also used in coating and sealing solar panels and wind turbines that protect against harsh weather conditions. Fluoropolymers provide safety by preventing leaks and environmental releases in a range of renewable energy applications. The unique characteristics of PFAS such as water, acid, and oil resistance make these substances hard to replace.

Unless damaged, solar panels continue to produce energy beyond their lifeline. Fluoropolymers are what make solar panels durable. Going solar requires significant investments and without fluoropolymers, the risk of producing and installing them will increase, and production shortages will follow. This is exactly what is currently happening in Europe with microchips, which rely on PFAS in the production process. The closing of a plant in Belgium has left semiconductor manufacturers on the verge of serious production delays.

That is not to say that PFAS are risk-free. A 2021 study by Australian National University confirms that the PFAS exposure does carry some risk, but that most exposure comes from contaminated water. If EU regulators really want to make a difference, their legislation should focus on regulating PFAS from a clean water approach, as opposed to a full ban that comes with a long list of externalities.

The proposed ban is also problematic because fundamentally it won’t drive down demand for PFAS. Banning will shift production to countries like China, where environmental considerations are nearly non-existent. As a result, European regulators will be giving China the upper hand for both EV battery production, solar panels, and semiconductors. Not to mention, banning a substance that is key to so many production processes will magnify the damage caused by inflation. For European EV and solar panels producers, the PFAS ban will be a huge hurdle that is extremely difficult to overcome.

If the European Union is really as determined to pursue a transition to EVs as they suggest, the PFAS blanket ban should be called off. Instead, PFAS should be assessed individually and where poor production processes result in water contamination, the government should intervene.

Originally published here

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