One year into the EU s Raw Materials Initiative: An update from the industrial perspective

Transcription

1 One year into the EU s Raw Materials Initiative: An update from the industrial perspective Fennoscandian Exploration and Mining FEM December 2009 Rovaniemi, Finland Dr. Corina Hebestreit Euromines

2 Contents 1. EU industrial policy Results, future, economic growth 2. Integrated strategy Raw Materials Initiative Three pillars The way forward 3. Working Groups Criticality and Best Practice 4. RTD contribution to sustainability 5. Working with the Presidencies i 6. Conclusions & Future of RMI

3 Industrial policy means competitiveness Cost structure of manufacturing industry (Germany, 2006) Other costs (goods, taxes, depreciation etc.); 32,50% Material costs; 43,00% Personnel costs, energy costs; contracted 180% 1,80% services; 22,70% Source: Fraunhofer 2009

4 Results of EU industrial policies Material flow 2009 Europe Waste Secondary materials China Primary materials Products 2030 Europe Waste Secondary materials China Pi Primary materials Products

5 Results of EU industrial policies Industrial flow 2009 Europe Waste EU Industry Secondary materials China Chinese Industry Primary materials 2030 Europe EU Industry Products Waste Secondary materials Pi Primary materials China Chinese Industry Products

6 What will happen to the EU industry Recycling in the EU EU mine EU car production Europe without the industry? EU MARKET Chinese car production

7 EU economic growth based also on European raw materials supply No mining in Europe Supply chain for raw materials interrupted EU downstream industry These sectors represent: ECONOMIC O C GROWTH EU Sectors: value added of - construction No value added 1,324 billion -chemicals? PARALYSED - automotive - aerospace - machinery - equipment employment No jobs for 30 million people

8 Material Forecast Example: Predict growth rates for photovoltaic cells Development of raw material demand Demand forecast for materials for photovoltaic cells Tonnes Indium Selenium Gallium Cadmium Tellurium 2007

9 Copper demand for drive trains in standard and hybrid cars (two options) hybrid passenger car (1) 2026 (2) standard passenger car (1) 2026 (2) () Source: Fraunhofer copper in kg

10 Neodym in permanent magnets for hybrid cars hybrid passenger car Standard passenger car Source: Fraunhofer ,2 0,4 0,6 0,8 1 1,2 Neodym in kg

11 Silver new technologies t/yea r Solar cells Displays (OLED) Solarthermic generators RFID tags Nano-silver Micro-electric condensators Leadfree solders

12 Raw Materials for Europe a Continent revises its policy November 2008: European Commission published its new Communication The raw materials initiative meeting our critical needs for growth and jobs in Europe. EC realized it needed to address this very important issue at the highest level in order ensure security of raw material supply for its economic growth. There is need for a decisive European response in order to ensure European competitiveness. The issue of raw materials requires high level political attention and should be addressed in an integrated EU strategy that ties together various EU policies and promotes further cooperation between the Member States t where appropriate.

13 Integrated raw materials strategy The Commission proposed in its Communication that the EU should agree on an integrated raw materials strategy. While the current effects of the financial crisis are leading to a slow down in the growth of global demand for raw materials, it is expected that the growth levels of emerging countries in the long run will maintain high pressure on raw materials demand. Fundamental changes on global markets 450 export restrictions on more than 400 different raw materials Strategies to secure privileged access to raw materials 50% of major mineral reserves located in low income countries

14 European Commission Vice-President G. Verheugen We must act, to ensure that access to raw materials for enterprises will not be hampered. We need fair play rules on external markets, a good framework to foster sustainable raw materials supply from EU sources as well as improved efficiency in resource use and recycling. It is our aim to make sure that Europe s industry will be able to continue to play a leading role in new technologies and innovation.

15 An integrated strategy based on 3 Pillars 1. Ensure access to raw materials from international markets under the same conditions as other industrial competitors; 2. Set the right framework conditions within the EU in order to foster sustainable supply of raw materials from European sources; 3. Boost overall resource efficiency and promote recycling to reduce the EU s consumption of primary raw materials and decrease the relative import dependence. Define critical raw materials Identify - in close cooperation with Member States and stakeholders - a methodology and list of potentially critical raw materials.

16 First pillar Access to raw materials on world markets at undistorted conditions Key actions: pursuing raw materials diplomacy; promoting enhanced international cooperation; access to primary and secondary raw materials should become a priority in EU trade and regulatory policy; EU policy development at three levels: strengthening g states; promoting a sound investment climate; promoting sustainable management of raw materials.

17 Second pillar Foster sustainable supply of raw materials from European sources Key actions: having the right framework conditions securing access to the land; improving the knowledge base of mineral deposits within EU; better networking between the national geological surveys; promoting research projects; address the problem of skill shortage; raising awareness of the importance of domestic raw materials for the European economy; developing guidelines to reconcile Natura 2000 areas with extractive activities nearby.

18 Third pillar Reduce the EU s consumption of primary raw materials Key actions: promoting resource efficiency, recycling; substitution and increased use of renewable raw materials; ensuring that the treatment of waste takes place under fair and sustainable conditions in relations with third countries.

19 Raw Materials Initiative Commission i proposes to launch a European Raw Material Initiative as follows: EC MS Ind ustr y Level of response 1 Define critical raw materials. X X X 2 Launch of EU strategic raw materials diplomacy with major industrialised and resource rich countries. X X 3 Include provisions on access to and sustainable management of raw materials in all bilateral and multilateral trade agreements and regulatory dialogues as appropriate. X X

20 Raw Materials Initiative EC MS Ind ustr y 4 Identify and challenge trade distortion measures taken by third countries using all available mechanisms and instruments, including WTO negotiations, dispute settlement t and the Market Access Partnerships, prioritising those which most undermine open international markets to the disadvantage of the EU. Level of response X X X Monitor progress by issuing yearly progress reports on the implementation of the trade aspects, drawing, as appropriate, on inputs from stakeholders.

21 Raw Materials Initiative 5 Promote the sustainable access to raw materials in the field of development policy through the use of budget support, cooperation strategies and other instruments. 6 Improve the regulatory framework related to access to land by: - promoting the exchange of best practices in the area of X land use planning and administrative conditions for exploration and extraction and - developing guidelines that provide clarity on how to reconcile extraction activities in or near Natura 2000 areas X with environmental protection. 7 Encourage better networking between national geological surveys with the aim of increasing the EU's knowledge base. EC MS Ind ustr y Level of response X X X

22 Raw Materials Initiative EC MS Ind ustr y 8 Promote skills and focused research on innovative exploration and extraction technologies, recycling, materials substitution and resource efficiency. i Level of response X X X 9 Increase resource efficiency and foster substitution of raw materials. X X X 10 Promote recycling and facilitate t the use of secondary raw X X X materials in the EU.

23 The way forward 1 st pillar Ensure a level playing field in access to resources in third countries Environmental and social Rucksack Internalising environmental and social costs into the prices of imported materials. Transparency initiative against corruption Promotion of worldwide standards for Accounting of Reserves and Resources Capacity building in developing countries to raise the bar of environmental and social performance

24 The way forward 2 nd pillar Better framework conditions for extracting raw materials within the EU Lower energy costs Shorter permitting times More efficient extraction of deposits (often better to extend an existing mine than to establish a new mine) More R&D Raw material Primary and secondary More material recycling, less energy recovery Labour costs

25 The way forward 3 rd pillar Reduced consumption of primary raw materials by increasing resource efficiency and promoting recycling Improve functionality per ton of material Improve product design Increase awareness of material s performance (better choices) OK OK

26 2 Working Groups Following the Commission s Communication 2 WG were created: Ad Hoc working group defining critical raw materials First meetings: April, September, November 2009 Defining of criticality Defining critical minerals for EU economy Ad Hoc working group exchanging best practices on land use planning, permitting and geological knowledge sharing First meetings: May, September, November 2009

27 WG 1 Ad Hoc working group defining critical raw materials The Fraunhofer Institute appointed as a consultant to assist DG Enterprise in developing the methodology for defining the criticality and to assess the metals/minerals. The argument of risk factors influencing the criticality of European indigenous resources is accepted by DG Enterprise. but the criteria i by which h the critical minerals should be selected or from what they should be protected, or how they should be fostered is to be developed. WG1 supposed to deliver results by April 2010 with the aim of more formal Council conclusions in June/July 2010

28 WG 2 exchanging best practices on land use planning, permitting and geological knowledge sharing Questionnaire on best practices: permitting by competent authorities, stakeholder consultation ti within limits, it acknowledgment of overriding public interest Deadline for questionnaire: 7 th December 2009 Next meeting: 10 th December 2009 WG2 supposed to deliver results by April 2010 with the aim of more formal Council conclusions in June/July 2010

29 Consultations with non-eu Member States So far some interest has been expressed by several non-eu countries: Norway Canada South Africa Brazil

30 Discussions within the European Commission DG Trade Pushed by down-stream users DG Trade has been very active in launching a debate about China s behaviour in the context of WTO and tackling trade restrictions ti on raw materials. DG Development DG Development and DG Enterprise agreed to establish a Member States working party to discuss development policies and integration of raw materials concerns into these policies. DG Environment DG Environment pushing its Thematic Strategy on the Sustainable Use of Natural Resources, the UNEP International Panel for Sustainable Resource Management and its Sustainable Production and Consumption Policy as its response/contribution to the Raw Materials Initiative.

31 Other stakeholder participation OECD OECD looking on the long-term supply situation of the raw materials BIAC Raw Materials Committee OECD Trade Committee OECD Investment and Development Committee

32 Other stakeholder participation UNEP UNEP International Panel for Sustainable Resource Management Meetings: in June 2009: drafting assessment reports on Biofuels, Global Metal Flows, Decoupling and Prioritisation of Products and Resources. in September 2009: at its World Resources Forum 2009, where the group called for a global strategy to frame a new economic model that would directly tax raw materials instead of products and labour.

33 World Resources Forum launched in September 2009 Main objective : resource efficiency targets at global level by 2015, aiming at absolute decoupling Reorient R&D on resource productivity and closed materials loops Reshape economic policy frameworks to account for scarcity of natural resources

34 The RTD contribution to the future ETP SMR SUBSEA Mining Optimising throughout the resources life-cycle Saving Water Resources sea based Critical Minerals Deposits Information System (CriSys) WP 3 Safe Deep WP 4 Eco-efficient WP 5 Novel technol- Resource in-situ ogy for select System Extraction ti extraction ti ive extraction ti A European Minerals Intelligence Network (EMINENT) WP 1: Exploration WP 2: Resource characterisation Land based

35 Working with the EU Presidencies Czech Republic Prague Conference April 2009 International Conference Mineral Resources for Europe 28th - 29th April 2009, Prqgue The official Conference of the Czech Presidency Organized in response to the Raw Materials Initiative; Aim of the conference: Address the question of demand and supply of minerals for the European Union.

36 Working with the EU Presidencies Sweden Lulea Conference October 2009 Conference on Sustainable mineral resources within EU: European higher education and research on metallic and mineral raw materials 12th - 14th October 2009, Lulea The official Conference of the Swedish Presidency Organized in response to the Raw Materials Initiative; Aim of the conference: Agree on a joint declaration on how future initiatives related to R&D and education in response to the RMI can be implemented.

37 Working with the EU Presidencies Spain Madrid Conference June 2010 Conference under the Spanish Presidency Between April and June 2010 the two first draft report of the WG 1 on defining critical raw materials and WG 2 on exchanging best practices will be prepared and should be a part of the conference. We would like to stress the fact that the extractive industry can play a central role in community development. We would like to prepare 3 to 4 case studies how the mining activities can contribute to the economic and social development of the region; addressing regions of countries that t held, are holding and will hold the Presidencies of the EU: Sweden, Spain and Poland. Main theme: Access to land Sub-header: Mining and Regional Development tbc Date and place: June 2010, Madrid, Spain

38 Working with the EU Presidencies Poland Conference first half 2011 Cooperation with KGHM and Polish Mining Forum Pre-meeting 17 November 2009

39 Conclusions & Future of RMI / 1 The Communication has been sent to the Council of Ministers and the European Parliament. The Raw Materials Initiative and the position of EU Members States were discussed during the Ministerial Meeting in Prague (29 April 2009). Council Conclusions adopted in May European Commission will report to the Council in 2 years on the implementation (end 2010).

40 Conclusions & Future of RMI / 2 In June 2009 the RMI handed d over to Swedish Presidency. Lulea, October 2009 Conference on Sustainable mineral resources within EU: European higher education and research on metallic and mineral raw materials Linkoping, November 2009 Presidency High-level Conference Eco-efficient Economy: Towards Innovative and Sustainable Competitiveness In January 2009 the RMI handing over to Spanish Presidency. Conference under the Spanish Presidency planned June 2010 (Madrid)

41 Thank you for your attention! Dr. Corina Hebestreit Euromines Av. de Broqueville 12 B-1150 Brussels Belgium