🌱 Why are some raw materials considered “critical”?
Certain raw materials are seen as “critical” as they are deemed to play a key role for the economy and autonomy of countries. In the EU, so-called “critical raw materials” entail many of the materials needed for the transition over to renewable energy and for creating a more digitalized economy. Broadly speaking, the regulation of critical raw materials is used as a way to try to decrease geopolitical dependencies and boost the local economy. Particularly, the Critical Raw Materials Act (CRMA) aims to strengthen the EU’s mining, recycling, and mineral processing sectors.
🌱 When will the CRMA come into force?
On 18 March 2024, the EU’s Council adopted the CRMA. The act is part of the Green Deal Industrial Plan, and it aims “to ensure a secure and sustainable supply of critical raw materials”. The Council’s adoption was the final step prior to the act’s adoption. The act will now be signed by the Presidents of the European Parliament and Council. It will then be published in the EU’s official journal and enter into force 20 days later.
🌱 What benchmarks does the act set out?
The act puts forth two lists of materials that are key to the EU’s transition over to a green and digital economy, as well as for the EU’s space and defense industries. These lists entail 34 critical and 17 strategic materials. The CRMA sets out three benchmarks for the annual consumption of raw materials in the EU. It says that 10% of these raw materials must come from local extraction; 40% are to be processed in the EU; and 25% are to come from recycled materials. Moreover, under the act, EU Member States are required to have national exploration plans.
🌱 How will the act help to ensure access to critical raw materials?
To strengthen strategic project development in the EU, Member States must “create single points of contact at the relevant administrative level and at the relevant stage in the critical raw materials value chain”. The act also sets out maximum periods for granting permits of 27 months for extraction projects and 15 months for recycling and processing projects. Exceptions are permitted to safeguard “a meaningful engagement with the local communities affected” and “a proper environmental impact assessment”. Under the act, battery producers, renewable energy and hydrogen generators, as well as other “large companies manufacturing strategic technologies” must carry out risk assessments of their supply chains.
Read more about the Critical Raw Materials Act here:
- https://www.consilium.europa.eu/en/infographics/critical-raw-materials/