Alina Oprea • 17 March, 2023 at 4:09 PM
The European Commission presented one of the fundamental objectives of its strategy to ensure that its industry can compete with the US and China in the segment of manufacturing products in the field of clean technologies and accessing the raw materials necessary for the green transition. The EU executive's Net-Zero Industry Act and Critical Raw Materials Act, part of its Green Deal Industrial Plan, are designed to ensure the bloc is not just a frontrunner in cutting carbon emissions, but also ahead on the technology required to do so.
Global investment in the green transition is set to triple by 2030 from $1 trillion last year, the Commission says.
"The bottom line is that we want to be leaders in the green industries of the future," says Vice President Valdis Dombrovskis.
The EU executive set targets for the region to mine 10% of the critical raw materials it consumes, such as lithium and for the first time copper and nickel, with recycling adding a further 15%. It also aims to increase processing to 40% of its needs by 2030.
The supply of minerals vital for the green transition is a challenge, with China processing almost 90% of rare earth and 60% of lithium, a key element for batteries.
The Commission said no more than 65% of any key raw material should come from a single third country.
"We are not a resource-rich continent," Dombrovskis said, adding that for many materials, Europe relied on a small number of partners. "This is not a stable nor reliable way to build the industries of the future. So we urgently need to diversify."
Russia's invasion of Ukraine has reinforced a lesson learned during the COVID-19 pandemic, namely that the EU cannot rely on a single supplier for essential materials.
The EU executive would recognize plans to mine or process raw materials as "strategic projects", which would allow them to benefit from streamlined permits and access to financing.