After announcing it in September 2022, on March 16, 2023, the European Commission finally outlined the contents of the Critical Raw Materials Act, the proposed legislation on so-called “critical raw materials.” This is a package of measures aimed primarily at ensuring a “secure, diversified, and sustainable” supply of metals and minerals essential for the “twin transition,” the digital and green transitions.
As of today, Europe is almost entirely dependent on imports, which is why the Critical Raw Materials Act aims to increase extraction and processing capacity within Europe, diversify trading partners – including through the creation of a Critical Raw Materials Club – and develop a supply chain that minimizes the negative environmental impact while focusing on circularity.
There are 3 main objectives set by the Critical Raw Materials Act to be achieved by 2030:
– at least 10% of the critical raw materials used in the European Union must be extracted from European mines. Currently, as reported by Euractiv, this figure stands at 3%.
– at least 40% of the critical raw materials used must be refined in Europe.
– at least 15% of the critical raw materials consumed must come from recovery and recycling activities.
Among the documents attached to the Critical Raw Materials Act is also an updated list of materials considered critical: 34 materials, metals, and minerals have been identified, 16 of which are defined as strategic. Among the objectives for 2030, one also concerns strategic raw materials: by the end of the decade, no more than 65% of the annual consumption of each of these materials can be satisfied by a single third country.
The European strategy also includes greater coordination among member states to obtain a more accurate estimate of national reserves, research and training, with the creation of a Raw Materials Academy to develop new skills needed by sector professionals, and the improvement of recycling rates and the use of secondary raw materials, in light of an impending “unprecedented” increase in the demand for critical raw materials, as documented by data from the European Commission itself.
Source: Circular Economy Network, c/o Foundation for Sustainable Development.
