The European Union's Critical Raw Materials Act aims to create a sustainable rare earth supply chain, addressing the growing need for natural resources that transform economies and societies. In an age where debt traps countries and people, the Act serves as a wake-up call to the importance of commodities and the power of gold.
Rare earth elements (REEs) are essential components of modern technologies, including electric vehicles, wind turbines, and various electronics. The EU has identified 30 critical raw materials (CRMs) that are vital for its industries, with the supply of these materials currently dominated by China. Recognising the strategic importance of these materials, the EU has introduced the Critical Raw Materials Act to ensure a sustainable and secure supply.
The Act aims to reduce dependence on external sources, promote recycling and circular economy principles, and encourage research and development of alternative materials. By doing so, the EU seeks to minimise geopolitical risks, environmental impact, and social consequences related to the extraction and processing of CRMs.
Several key initiatives under the Act include:
The European Raw Materials Alliance (ERMA) was established to strengthen the EU's value chain, promote investments, and support innovation.
The European Institute of Innovation and Technology (EIT) - provides funding for research and development of technologies that reduce dependency on CRMs.
The Raw Materials Information System (RMIS) - a platform to monitor the supply and demand of CRMs and support decision-making processes.
Regulations and policies - aimed at promoting sustainable mining practices, recycling, and waste reduction.
The Critical Raw Materials Act reflects the growing awareness of the importance of commodities in modern economies. It showcases the EU's commitment to fostering a sustainable future, reducing debt traps, and harnessing the power of gold and other valuable resources. By taking these measures, the EU aims to secure its position as a global leader in sustainability and innovation, while safeguarding the well-being of its citizens and the environment.
