An action plan on Critical Raw Materials

  circular economy | March 10, 2021

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The importance of Critical Raw Materials for the future of Europe

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In this interview, Isolde Ries, First Vice-President of the Saarland Regional Parliament, answers five questions on her opinion on the Action Plan on Critical Raw Materials, which is expected to be adopted during the March plenary session of the European Committee of the Regions.

In September 2020, the European Commission presented an action plan on critical raw materials, which is at the heart of the opinion prepared by Isolde Ries (DE/PES), First Vice-President of the regional parliament of the German state Saarland. The Commission classifies raw materials as critical if they are of decisive economic importance, but cannot be reliably produced within the EU and must therefore be largely imported. Particularly with regard to raw materials important for the development of digitalisation and future-oriented technologies, the European Union is heavily dependent on imports from other countries. To continue to secure the European stock of critical raw materials, local and regional authorities should also play a crucial role, given the need to enhance the extraction of raw materials within the EU and improve the recycling of critical raw materials : These are the recommendations contained in the Opinion on the Action Plan on Critical Raw Materials.

Your opinion mainly deals with how to secure the future stock of critical raw materials in the European Union. What concrete measures should the EU take to protect supply chains of critical raw materials and make them less dependent on third countries?

From an economic point of view, it is right and important for the European Committee of the Regions to comment on the Commission's communication on the resilience of critical raw materials, published at the beginning of September last year. Modern economies with long value chains cannot function over time without a supply of raw materials that is secure, competitive and environmentally friendly. We must reduce the EU's dependence on critical raw materials through more efficient use of resources, sustainable product development and innovation. Domestic extraction of raw materials in the EU must be supported politically and financially, and supply from third countries must be diversified. Environmental and social standards, but also the traceability of supply and distribution chains, must be guaranteed through international agreements. I am also in favor of the creation of a European Raw Materials Alliance, proposed by the European Commission, which would include representatives of industry, research, Member States and civil society. This initiative can make a valid contribution to the promotion of technical know-how, innovations and investments.

How can the European Union contribute to greater accountability in raw material supply chains and better use of these?

There is no doubt that raw material supply chains have shortages. We need strategic approaches, such as building adequate inventories, to avoid production and supply disruptions. There is also a need to consider alternative sources of supply, as well as create closer partnerships between stakeholders in the critical raw materials sector. However, cooperation with partners must also be linked to responsible sourcing. The high concentration of supply in countries with lower social and environmental standards not only represents a risk for security of supply, but can also exacerbate social and environmental problems. It is therefore necessary to aim first and foremost at concluding international agreements at the level of the World Trade Organization (WTO) aimed at guaranteeing a high level of transparency of supply and distribution chains. The conclusion of such agreements should be followed as soon as possible by negotiations on the systematic improvement of these standards.

How to increase the efficiency of the use of raw materials and improve the circular economy in production processes?

Improving efficiency in the use of raw materials and in subsequent production processes is naturally very important, as it allows us to better reconcile the objectives of competitiveness and environmental sustainability. Very often, in Europe, the term "waste" hides precious resources and critical raw materials. Recycled materials should therefore be used to a much greater extent to reduce the use of primary and critical raw materials. This invitation is addressed simultaneously to producers, distributors and consumers.

What role can cities and regions, especially Europe's mining regions, play in increasing the extraction of raw materials in the EU?

Local and regional authorities play a key role in the European Commission's action plan on raw materials. They have, for example, authorization and supervisory powers for industrial and economic projects relating to raw materials, and it is at the local level that the creation of value and employment associated with the extraction of raw materials takes place. The same also applies to research and development projects.

As a political representative of the Saarland, a region in which mining activity is traditionally strongly rooted, I would particularly like to underline the following aspects: precisely the former mining regions and those still active have the technical skills necessary to extract raw materials, and these skills should continue to be used in the future. Of course, it is not easy today to restart the extraction of raw materials on the surface or underground, as the local population shows ever greater resistance towards mining projects. In this regard, we must increase citizens' acceptance of these projects through education and information. Negative effects on the environment must be avoided or minimized as much as possible.

What lessons can be learned from the COVID-19 pandemic and the months of confinement, which have revealed the vulnerability of some key sectors?

The COVID-19 crisis has shown that Europe is largely dependent on third-country suppliers for critical raw materials and that supply disruptions can have a negative impact on industrial value chains and other sectors. In Europe, critical raw materials are needed in many key sectors, such as, for example, automotive, steel, aeronautics, IT, healthcare or renewable energy. Future-oriented products and technologies, such as e-mobility, digitalisation, Industry 4.0 and the energy transition, are transforming and increasing the need for raw materials. We must be well aware that the EU Green Deal will not be possible without the use of critical raw materials.