The EU Launches Critical Raw Materials Act to Secure Access to Essential Resources
The European Union has launched a Critical Raw Materials Act to guarantee the security of access to essential raw materials. The new legislation, which was adopted in November 2020, is an ambitious effort to promote a secure and resilient raw material supply chain across Europe. Under the legislation, the European Commission (EC) is charged with creating an EU-wide strategy that supports the development and sustainability of critical raw materials.
What Are Critical Raw Materials?
Raw materials are essential inputs for most production processes and supply chains, but not all are equal in importance. Critical raw materials are those whose supply is most at risk and are the most important for Europe’s economy. They are typically those that have a high economic value, have a wide range of uses, and have a limited supply or availability.
Why Are Critical Raw Materials Important for the EU?
Critical raw materials are essential for Europe’s industries, including green and digital transformation. They are something that the EU has recognized as being of high importance, as they can make or break entire industries and supply chains. However, Europe is heavily reliant on imports for these materials, which exposes it to potential security risks including supply shortages, price fluctuations and disruptions. The Critical Raw Materials Act seeks to address these issues and build resilience.
What Does the Critical Raw Materials Act Do?
The Critical Raw Materials Act establishes a clear framework and supporting policy measures to ensure EU access to critical raw materials in years to come. It will help reduce Europe’s dependency on imports, develop innovative and sustainable raw material production methods, increase resource efficiency, and promote responsible sourcing and processing.
Key Measures
The legislation will take a number of measures to support the sustainable production, processing and use of raw materials. Some of the key measures include:
• Establishing an EU-wide mapping of critical raw materials
• Providing incentives for developing mineral resources for high-value products including recycling
• Investing in research and development for the production of raw materials
• Reducing reliance on imports by increasing domestic production and processing
• Developing an inventory of raw materials reserves
• Setting up a database of available raw materials
• Promoting responsible sourcing and production of raw materials
• Improving resource efficiency
• Introducing mandatory requirements for industry in order to ensure a sustainable and circular approach to sourcing raw materials
• Creating a framework for international cooperation on raw materials
Impact
The Critical Raw Materials
Act seeks to ensure that Europe has access to the raw materials it needs to maintain its economy and achieve its climate and digital goals. It is a bold step that will bring important economic, environmental and social improvements and promote a resilient, circular and knowledge-based economy in Europe. This will not only improve security and reduce reliance on imports but also strengthen industry, create new jobs and promote economic prosperity across the continent.
The Critical Raw Materials Act is an ambitious piece of legislation that is designed to ensure that Europe has secure access to essential raw materials. It will invest in research and development, promote a sustainable and circular approach to sourcing and create opportunities for increased domestic production and processing. All of these measures will help to strengthen Europe’s economy, improve resilience and foster economic prosperity across the continent.