The adoption of the Critical Raw Materials Act by the EU was a significant step towards reducing dependency on essential materials for the green economy. However, with the recent shift to the right in the European Parliament, the implementation and priorities of this Act could face changes.
Key considerations moving forward:
- Setting priorities: The new Parliament and Commission will play a crucial role in identifying and classifying critical raw materials. Changes in the political landscape may influence which materials are prioritized and how policies are shaped to promote their responsible sourcing and sustainable use.
- Implementation challenges: Turning ambitions into investment decisions will require streamlined permitting processes, dedicated funding, and improvements in competitiveness, such as energy prices and regulatory frameworks.
- Demand for electric vehicles: The expected increase in demand for materials like lithium, driven by the growth of the electric vehicle market, poses a significant challenge. Meeting this demand will likely necessitate a combination of new mining projects, increased recycling efforts, and strategic trade agreements.
- Environmental and social considerations: Balancing the need for critical raw materials with environmental sustainability and social responsibility will be a central challenge. The new Parliament’s stance on mining and other environmentally impactful activities will be crucial in this regard.
- Trade policies: The Commission’s approach to trade agreements will significantly impact the EU’s ability to secure critical raw materials. Ensuring these agreements align with the goals of the Critical Raw Materials Act, particularly regarding sustainability and protection of domestic industries, will be essential.
- Industrial capacity: There will be a need to distinguish between raw materials where the EU aims to preserve existing industrial capacity and those where new capacity is needed. Tailored trade negotiations and stricter rules of origin will be important to protect and develop the EU’s strategic raw materials production.
Conclusion:
The new European Parliament and Commission will have a decisive role in shaping the future of the Critical Raw Materials Act and the broader strategy to reduce the EU’s dependency on these materials. Their decisions will impact everything from prioritization and implementation to trade policies and environmental considerations, ultimately influencing the EU’s ability to build a sustainable and competitive green economy.
