The Critical Raw Materials Act, together with the Net Zero Industry Act and the reform of the electricity market design, is one of the flagship legislative initiatives of the Commission’s Green Deal Industrial Agenda presented on 1 February 2023
The political agreement between the Council and the European Parliament lists 34 critical raw materials (including 16 strategic raw materials) and sets targets to increase the EU contribution of these materials. In order to achieve this objective, the proposal foresees a fast and simplified authorisation procedure for strategic extraction projects, which would be managed by a single national contact point. It also promotes risk assessment of potential dependencies, Member States’ exploration plans, increased investment in research, innovation and skills, and protection of the environment by promoting the cycling and sustainability of raw materials.
At the global level, the Regulation has set out measures to diversify imports of critical raw materials, ensuring that no more than 65% of EU consumption of each strategic raw material comes from a single third country.
The Interim Agreement adds one critical raw material, aluminium, to the list of strategic raw materials. The agreement also allows projects capable of producing innovative raw materials to replace strategic raw materials in the relevant technologies to become strategic projects.
Member states will have the possibility to object to a project being developed in their member state if it is considered environmentally destructive.
The agreement maintains the 10% benchmark for extraction and 40% for processing, but raises the recycling benchmark to at least 25% of the EU’s annual consumption of raw materials. In addition, the recovery of raw materials in waste should be significantly increased.
The Agreement also provides that 18 months after the entry into force of the regulation, the Commission will submit a report on the estimated consumption of each critical raw material for the next three decades.
The Agreement also standardises the timing of the licensing procedure. The total duration of the authorisation procedure should not exceed 27 months for extraction projects and 15 months for processing and recycling projects. While the first step of the environmental impact assessment (the preparation of the report to be carried out by the project promoter) will not be included in the duration of the project authorisation, the public consultation required for the environmental impact assessment will be part of the overall duration of the authorisation procedure.
Member states welcomed the agreement. « The agreement lays the foundations for Europe’s strategic autonomy. Our dependence on raw materials is the Achilles heel of our competitiveness, but with the Critical Raw Materials Act we can turn this weakness into a strength. We can create a truly European extractive sector; we can turn our waste into a resource; we can build stronger links with third countries and ensure a truly sustainable lifeline for our industry. » – said Teresa Ribera Rodríguez, Spanish Minister for the Ecological Transition and Demographic Challenges.
