THE RAW MATERIALS INITIATIVE : MEETING OUR CRITICAL NEEDS FOR GROWTH AND JOBS IN EUROPE

Transcription

1 THE RAW MATERIALS INITIATIVE : MEETING OUR CRITICAL NEEDS FOR GROWTH AND JOBS IN EUROPE Plenary session of the Sectoral Social Dialogue Committee, Brussels, 8 December 2008 Hans Pietersen Entr. G3 - NEEI

2 Structure of presentation 1) Why a Communication? 2) Political background 3) Public consultation 4) Raw Materials Initiative 5) Way forward

3 Why a Communication? While the rising costs of energy and the high dependence of the EU on energy imports is already high on the political agenda, comparable challenges regarding certain non-energy raw materials have not yet received full attention. The EU is highly dependent on imports of strategically important raw materials which are increasingly affected by market distortions.

4 Securing reliable and undistorted access to raw materials is crucial for the functioning of an economy. Predictability is necessary for the development of our economies in a sustainable way. 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.

5 Real price indices of metallic minerals and crude oil Oil, mixed basket Metals 400 Privatizations and/or opening up to Foreign Direct Investment Price indices constant $ (2000 = 100) Korean war Vietnam war Nationalizations Oil crisis 1st 2nd Falling world demand Entry of new oil producers Rising Asian demand 50 Domination of the "Seven Sisters" cartel Excess metal capacity Second Iraq War Source: Radetzki M (2008), A Handbook of Primary Commodities in the Global Economy, Cambridge University Press. Numbers until 2007 updated by the author; 2008 (dotted) represents estimates of Commission services as consolidated 2008 indices are not yet available (the values related to the 2008 indices are based on 2008/Q2 and October 2008/2 data; see

6 Commission Raw Materials Initiative 2. Political background

7 Competitiveness Council, 21 May 2007 to develop a coherent political approach with regard to raw materials supplies for industry, including all relevant areas of policy (foreign affairs, trade, environmental, development and research and innovation policy) and to identify appropriate measures for cost-effective, reliable and environmentally friendly access to and exploitation of natural resources, secondary raw materials and recyclable waste, especially concerning third-country markets

8 G8 Summit, Heiligendamm, 8 June 2007 Raw materials are a key factor for sustainable growth in industrialised, emerging and developing countries. Free, transparent and open markets are fundamental to global growth, stability and sustainable development. Increased transparency in the extractive sector is of crucial importance for achieving accountability, good governance and sustainable economic growth worldwide.

9 Preparatory work European Commission adopted Staff working document in June 2007 on critical factors affecting the extractive industry in the EU:

10 Online questionnaire Public consultation: 240 replies: 68 individuals & 172 organisations Position papers 36 (38) replies Downstream users (metals, pulp and paper, rubber, chemicals, etc.)

11 Increase the sustainable supply of raw materials from European sources 5 Main challenges Encourage more open and Ensure more competitive transparency global markets throughout the and removing production chain distortions in of raw materials trade in raw and encourage materials capacity building in developing countries Encourage greater efficiency in the use of resources Establish an adequate EU knowledge base on raw materials

12 Communication on the Raw Materials Initiative meeting our critical needs for growth and jobs in Europe

13 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.

14 Priority action: define critical raw materials to identify in close cooperation with Member States and stakeholders a methodology and list of potentially critical raw materials.

15 Pillar 1 (external aspects) In the area of EU external relations Ensure better and more effective coordination and coherence among EU external policies at various levels: e.g. management of EU strategic partnerships; policy dialogues with third countries (Africa, emerging economies, developed countries). Promote enhanced international cooperation (e.g. G8, OECD, UNCTAD, World Bank, etc.) Dialogues on Arctic, deep sea mining and international trade routes; Support of international initiatives (e.g. Kimberley Process, EITI, EITI++).

16 Pillar 1 (external aspects) In the area of EU trade and regulatory policy The EU should work towards the elimination of trade distorting measures taken by third countries in all areas relevant to access to raw materials. The EU will take vigorous action to challenge measures which violate WTO or bilateral rules, using all mechanisms and instruments available, including enforcement through the use of dispute settlement.

17 Pillar 1 (external aspects) In the area of EU development policy: Strengthening States: economic, social, environmental and political governance is an important factor for development. Good governance also helps developing countries to transform the availability of mineral resources into the sustainable development of their economies and inclusive growth for the poor. Under the 10th European Development Fund, an incentive tranche of 2.7 billion is earmarked for countries according to their governance plans. Promote a sound investment climate: establishing a level playing field between companies and countries wanting to access raw materials; increasing transparency of mining deals and revenues; promoting sound taxation systems Another measure that increases a sustainable supply of raw materials comes from the European Investment Bank's lending to mining projects

18 Pillar 1 (external aspects) In the area of EU development policy Assist developing countries with capacity building to: manage public finances; sustainable management of natural resources; negotiations with mining companies. Promote sustainable management of raw materials Our development policy also focuses on helping our partner countries improving: their social and environmental standards; human rights conditions, and combating child labour; in particular as regards the growing sector of artisanal and small-scale mining that gives a living to about 100 million people.

19 Pillar 2 (internal aspects) Improve the regulatory framework related to access to land Promote the exchange of best practices in the area of land use planning and administrative conditions for exploration and extraction. Increase the involvement of national geological surveys in land use planning within the Member States. Develop a strategy for integrating sub-surface components into Kopernikus. Develop guidelines on reconciling extraction activities in or near Natura 2000 areas with environmental protection

20 Pillar 2 (internal aspects) Improve the knowledge base of mineral deposits within the EU. Encourage better networking between the national geological surveys to: facilitate the exchange of information; improve the interoperability and dissemination of data; particular attention to the needs of SMEs.

21 Pillar 2 (internal aspects) Promote skills through effective partnerships between universities, geological surveys and industry. Promote research on: innovative exploration and extraction technologies; recycling; materials substitution; resource efficiency.

22 Pillar 3 (efficiency + recycling) Give impetus to resource efficiency and ecoinnovative production processes: in context of Action Plan on Sustainable Consumption and production and Sustainable Industrial Policy. Promote research projects on resource-efficient products and production under FP7. Exchange information with the International Panel for Sustainable Resource Management (UNEP).

23 Pillar 3 (efficiency + recycling) Promote recycling and facilitate the use of secondary raw materials: ensure sound and harmonised enforcement of the Waste Shipment Regulation; release information on illegal shipments. Encourage recycling markets through the following measures: legislation, standards and labelling; public procurement; knowledge sharing and international action ( Action Plan for the Lead Market Initiative on Recycling).

24 Way forward The Communication has been sent to the Council of Ministers and the European Parliament. Council conclusions are expected in May. Implementation work with Member States and stakeholders (existing/new working groups). Report to Council in 2 years.

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