Event report

Over the past couple of decades, Europe has developed strong reliance on sources of critical raw materials in third countries. Moreover, our needs – and those of our systemic rivals and partners – are growing to sustain the ambitions of Europe's green and digital transition. It is estimated, for example, that demand for rare earths could increase tenfold by 2050, with the European Union currently importing 98% of these materials from China alone. In recognition of these heavy dependencies, the Commission published its Action Plan on Critical Raw Materials in September 2020, identifying over 30 materials and 137 products that are essential to our industry and society. In recent years, the European Economic and Social Committee (EESC) has carried out extensive work on topics linked to mining and raw materials, including its opinion CCMI 177, various follow-up meetings, a webinar, and several press and public publications. This involvement led to the participation of the EESC in the European Raw Materials Alliance (ERMA) as an observer. The European Parliament adopted its report on this topic on 23 November 2021. The Updated industrial strategy as well as the Commission's 2021 Strategic Foresight Report both put a strong spotlight on the importance of critical raw materials to achieve strategic autonomy for EU industry and society. In short, the issue of critical raw materials is topical and gaining momentum. It also touches upon the question of strategic autonomy and there is a great need to continue the public discourse and civil society engagement on this subject to find concrete solutions to these acute challenges. The Conference on Critical Raw Materials was divided into two panels which followed the keynote speeches by the high-level speakers: 1) Securing EU's open strategic autonomy: the role of critical raw materials in the EU industry's green and digital transition calls for solutions to secure supply and ensure resilience; 2) The importance of circularity and of creating a market for secondary raw materials in Europe to secure the EU's resilience. Conclusions and Recommendations _____________________________________________________________ 1. In order to increase autonomy and reduce dependencies in supply chains, European extraction and processing capacities must be exploited, including the promotion of domestic raw material sourcing. 2. By relocating mining and production to Europe, social and environmental standards can be safeguarded. Thus, a set of criteria for responsible mining needs to be defined. 3. The success of the green and digital transition is highly dependent on the availability of raw materials. The circular use of critical raw materials is therefore crucial. This includes: recycling and re-use of materials as well as the creation of new solutions to extend the life of products. Finally, new business models that favour the circular economy need to be fostered. 4. Along with substitution, primary sourcing and diversification of trade relations, the development of secondary raw materials is essential to enhance Europe's resilience in the domain. Therefore, the creation of a market for secondary raw materials in Europe must be facilitated. 5. Exploration is a high-risk activity which increases capital costs significantly. Therefore, fiscal incentives, including tax credits and State aid for mining and processing are needed. In addition, investments in research and development are essential as well as the existence of financing instruments that facilitate the green transition for the ore extraction and processing sectors. We also expect Member States to step up their investment efforts using the national recovery plans. 6. It is important to widen the definition and the paradigm of critical raw materials and envisage a wider and more frequent review of the critical raw materials list, increasing from once per year to once every two years. Additionally, the methodology of the list should include an ethical dimension.