Vision of the European Commission on the development of the mining industry in Europe by 2050

Transcription

1 Vision of the European Commission on the development of the mining industry in Europe by 2050 Materials European Mining Business Forum 18 May, Sofia Rodrigo CHANES European Commission. Directorate-General for Internal Market, Industry, Entrepreneurship and SME's (DG GROW). Unit C2 - «Resource Efficiency and Materials»

2 Overview 1. The importance of non-energy raw materials 2. EU policy. On-going actions 3. The mining industry in Europe by Conclusions Materials 2

3 1. The importance of non-energy raw materials Materials 3

4 Strategic importance of raw materials on economy materials may be small in GDP and jobs, but have strategic impact on economy TOTAL Metals: Non-metallic: 853 billion 13 million jobs 585 billion 11 million jobs MANUFACTURING DOWNSTREAM Metals: 787 billion, 12 million jobs Non-metallic: 511 billion, 9.9 million jobs MANUFACTURING BASIC MATERIALS Metals: 60 billion, 0.9 million jobs Non-metallic: 62 billion, 1.1 million jobs EXTRACTIVE ACTIVITIES Metals: 4.6 billion, 46k jobs Non-metallic: 11.7 billion, 185k jobs REPAIR & RECYCLING Recycling: 9 billion, 164k jobs Repair: 43 billion, 791k jobs -TOTAL: 53 billion, 955k jobs Materials Source: materials Scoreboard 2018 in preparation

5 Strategic importance of raw materials on economy materials are at the beginning of value chains Figure 1 - Share of world metals mining by world region ( ) (Source: EU 2016 RM Scoreboard; ICMM, 2012, Trends in the mining and metals industry Mining s contribution to sustainable development') Figure 2 - Global flow of steel from iron ore to end-use goods (mio tonnes, 2008) (Source: EU 2016 RM Scoreboard) Materials 5

6 % Strategic importance of raw materials on economy Import dependence Figure 3 - Share of imports in EU-28 compared to Direct Materials Input ( ) (Source: EU 2016 RM Scoreboard) Figure 4 - Import dependence for selected raw materials (primary raw materials) (Source: EU 2016 RM Scoreboard) Materials 6

7 Vanadium Tungsten Cobalt Antimony Phosphate rock Magnesium PGMs LREEs HREEs Natural graphite Germanium Baryte, Bi, Fluorspar, Hf, He, Natural rubber, Ta Be, Borate, Ga, In, Nb, P, Sc, Si-metal 3% 2% 1% 0% 7% 6% 13% 11% 17% 28% 35% 44% 42% Strategic importance of raw materials on economy Material flows in the EU economy 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Figure 5 - Sankey diagram on material flows in the EU economy (2014) (Source Commission Staff Working Document SWD(2018) 17 final Measuring progress towards circular economy in the EU Key indicators for a monitoring framework) Figure 6 - End-Of-Life recycling Input Rate (EOL-RIR) (JRC elaboration. EOL-RIR measures recycling s contribution to meeting materials demand, i.e. how much of the total material input into the production system comes from recycling) Materials 7

8 Strategic importance of raw materials on economy EU has a strong mineral potential Figure 7 Mineral deposits/potential in the EU (Source BGRM 2016; G. Bertrand, D. Cassard, ProMine project) Materials Figure 8 Metal and selected industrial minerals mine production in the EU (Source EU materials scoreboard 2018 in preparation) 8

9 2. EU policy. On-going actions Materials 9

10 EU policy framework EU Materials Strategy and Juncker priorities Commission priorities Jobs, Growth and Investment - circular economy and green growth Materials Initiative EU policy EIP on Materials Strategic Implementation Plan CRM list H2020 funding 3. Energy Union - transition to a low-carbon economy (renewables, electricity market, transport ) 4. Internal Market - unlock the full potential of the single market - a renewed EU Industrial Policy Strategy 6. Trade policy to harness globalisation - economic diplomacy - raw materials chapters in FTAs 9. A stronger global actor - international cooperation and development Materials ENTR G3 10

11 EU policy framework Materials Initiative Materials Initiative = EU raw materials policy Aim: securing sustainable supplies of raw materials Non-energy, non-agricultural raw materials Integrated strategy (3 pillars) Introduced a list of Critical Materials in 2011 and updated lists in 2014 and 2017 Materials ENTR G3 11

12 EU policy framework European Innovation Partnership on Materials When: launched in 2013, based on Materials Initiative, Industrial Policy, Innovation Union Who: Industry, public sector, academia and NGOs in HLSG + Sherpa, Operational Groups Groups renewed in Materials Commitments: 980 partners, indicative budget ± EUR 2 billion Why: to ensure the sustainable supply of raw materials to the European economy What: Strategic Implementation Plan adopted in 2013 Achieving targets Position paper on future orientations of the High-Level Steering Group of the EIP. 20 December 2017 Materials 12

13 EU policy framework Tools, studies, EIT-RM Tools, studies EIT materials Evaluation and exchange of good practices for the sustainable supply of raw materials within the EU (2014) Minventory Study (2015) materials scoreboard (2016) Minlex study (2017) Study on the review of the list of CRM (2017) Report on Critical Materials and the Circular Economy (2017) Material System Analysis (completed 2018) ENTR G3 13

14 Horizon 2020 coverage Horizon 2020 Horizon 2020 projects - materials ( ) I.C; ; 7% EU Contribution per EIP Priority Area, ( , 291 million, 54 projects, 560 participants) II.B; ; 0% II.A; ; 2% II.C; ; 5% III; ; 3% I.A; ; 2% I. - Technology Pillar I.A - materials research and innovation coordination I.B - Technologies for primary and secondary raw materials' production I.C - Substitution of raw materials II. - Non-Technology Policy Pillar II.A - Improving Europe's raw materials framework conditions II.B - Improving Europe's waste management framework conditions and excellence II.C - Knowledge, skills and raw materials flows III. - International Cooperation Pillar Investment activities I.B; ; 81% Materials 14

15 RMIS Materials Initiative Knowledge base Scoreboard Materials Profiles and flows CRM Country profiles Trade flows Materials 15

16 3. The mining industry in Europe by 2050 Materials 16

17 Material Extraction (Billion tonnes) GDP Trillion US dollars (constant 2010 US$) Strategic importance of raw materials on economy Global material extraction Global Picture and outlook By 2050, there will be 9,7 billion people in the world Resource use could increase by 120% between 2010 and 2050 Demand will be mostly driven by developing regions, where up to 3 billion people will move from low to middle class levels In 2050, Global metals extraction will increase by 50% Non-metallic minerals production by 100% Urbanization will be a key driver of industrial mineral and base metal consumption Decarbonisation will be a key driver in many raw material value chains a) Historical data b) Projections Biomass Fossil Fuels Metal ores Non-metallic minerals GDP Figure 7 - Global material extraction by resource type (Source materials Scoreboard 2018 in preparation, UNEP, World Bank) Materials 17

18 EU policy Some elements 7 th Environment Action Programme Vision 2050: In 2050, we live well, within the planet s ecological limits. Our prosperity and healthy environment stem from an innovative, circular economy where nothing is wasted and where natural resources are managed sustainably, and biodiversity is protected, valued and restored in ways that enhance our society s resilience. Our low-carbon growth has long been decoupled from resource use, setting the pace for a safe and sustainable global society Energy Roadmap 2050 Low-carbon economy roadmap suggests that: By 2050, the EU should cut greenhouse gas emissions to 80% below 1990 levels. Milestones to achieve this are 40% emissions cuts by 2030 and 60% by All sectors need to contribute. The low-carbon transition is feasible & affordable. High Level Expert Group on Energy Intensive Industry Materials 18

19 Mining industry in Europe by 2050 Implementation of the EIP-RM EIP-RM Strategic Implementation Plan I. Technology Pillar o I.A materials research and innovation coordination o I.B Technologies for primary and secondary raw materials' production o I.C Substitution of raw materials II. Non-Technology Policy Pillar o II.A Improving Europe's raw materials framework conditions o II.B Improving Europe's waste management framework conditions and excellence o II.C Knowledge, skills and raw materials flows III. International Cooperation Pillar o III.1 Technology o III.2 Global Materials Governance and Dialogues o III.3 Health, Safety and Environment o III.4 Skills, Education and Knowledge o III.5 Investment activities Materials 19

20 Mining industry in Europe by 2050 Implementation of the EIP-RM II.1. Minerals policy framework (2020) Action Description Implementation in 2050 II.1.4 II.1.6 II.1.7 II.1.8 II.1.9 II.2.1 Explore how to manage mining waste as a resource Encourage to translate policy/information into appropriate language(s) EU guidance with regard to permitting procedures. EU guidance on streamlined application of EU environmental legislation Application of the concept of mineral deposits of public importance (MDIP) as to facilitate investments Mining waste recognised as a mineral resource in EU MS MS legislation translated into English EU guidance on streamlined application of EU environmental legislation to exploration, extraction, processing, waste management, closure, etc. MS track real times in permitting MS identify bottlenecks per subsectors EU guidance for the definition of MDPI II.10. materials flows along value chains (2020) Action Description Implementation in 2050 II.10.1 materials partnerships from across value Cross sectoral partnerships, knowledge chains exchange Materials 20

21 Mining industry in Europe by 2050 Implementation of the EIP-RM II.2. Access to minerals potential in the EU (2020) Action Description Implementation in 2050 II.2.1 II.2.3 II.2.4 II.2.5 II.2.7 II.2.8 Elaborate definition of mineral deposits of public importance (MDPI) Intensify the general exploration/public identification of mineral potential Safeguard mineral deposits of public importance at the relevant level Develop INSPIRE directive guidelines and/or enhance implementation Explore feasibility of integrated mapping for land/sub-surface use planning Link land use planning policies to national minerals policies EU and MS guidelines definition of MDPI MS have identified MDPI EU and MS funds for identification mineral deposits MS tax reduction for mineral exploration MDPI are protected (similar to Natura 2000) INSPIRE supports land use planning and protection of MDPI, including sub-surface use Land use planning incorporate MDPI, including geological potential Materials 21

22 EIP-RM SIP Implementation of the EIP-RM II.3. Public awareness, acceptance and trust (2020) Action Description Implementation in 2050 II.3.1 II.3.2 II.3.4 Action Description Implementation in 2050 II.8.2 II.8.4 II.8.3 Incorporate recent best practice examples of communication with stakeholders Promote early and open communication with neighbours and local communities Encourage industry to adopt/raise awareness of industry adherence to voluntary codes Data input, EU/global standards for interoperability with national and other databases Public data reporting, expertise and skills Society is well aware of the importance of non-energy raw materials EU and MS guidelines on modern mining, mitigation strategies Industry (including SMEs) has adopted recognised voluntary codes II.8. European Union Materials Knowledge Base (2020) UNFC is widely used for reporting at EU level (and national and company level?) Maps and evaluation of European stocks EU Minerals Yearbook Early warning systems Statistics at EU and MS level aligned to materials intelligence - methods, tools and provide information. Methods and tools for analysis assessing supply/demand are implemented Materials 22

23 4. Conclusions Materials 23

24 Conclusions materials will continue having strategic impact on economy materials supply and demand will rise to deliver low carbon and circular economy Society will be aware of the importance of non-energy raw materials Decarbonisation will be a key driver in many raw material value chains EU will have a better enabling framework and knowledge of available to exploit its raw materials potential materials will be fully integrated in economic and industrial strategies Materials 24

25 Next events 3 rd Materials Week (Brussels, November 2018) Presentations of RM Week 2017 available on: Materials 25

26 Thank you!! EU raw materials: EIP on materials: Horizon materials webpage: H2020 Participant portal Horizon 2020 EXPERTS: EIT materials: Materials 26

27 Back up slides Materials ENTR G3 27

28 Materials 28 ENTR G3 EIP targets 2020 European Innovation Partnership on Materials Overall objective: Contribute to the 2020 objectives of the EU Industrial Policy (to increase the share of industry in GDP to 20%), the Innovation Union and the Resource Efficiency 'flagships' EIP targets: Up to 10 innovative pilot actions Substitutes for at least 3 applications of CRMs Improve framework conditions for primary and secondary RM EU RM Knowledge base with RM flows and trends International cooperation strategy Strategic Implementation Plan (SIP) adopted on 25 th September 2013

29 Biggest suppliers of CRM to the EU Materials Initiative EU Critical Materials Source: Study on the review of the list of critical raw materials 2017 Materials ENTR G3 Economic importance Importance of a raw material per economic sector & importance of the sector in the EU economy (value added) Substitution (technical and cost performance) Supply risk Global supply and EU sourcing Market concentration (HHI) Governance performance (WGI) Import reliance Trade agreements and restrictions Substitution (production, criticality, co/by-production) End-of-Life Recycling Input Rate 29

30 Where do we have battery raw materials and battery plants? Legend: Production in tonnes (percent of total EU supply) materials Cobalt Major global producers D.R. Congo (64%) China (5%) Canada (5%) t Major sources of EU supply Finland (66%) Russia (31%) 1 900t EU production Finland France (N.C.) Import reliance rate End-of-life recycling input rate 32% 0% Battery plant planned or under construction Operational battery plant Potential production Cobalt Sweden Germany Natural graphite 179 (0.2%) Finland Cobalt (65.7%) Nickel (15.8%) Lithium Nickel Natural graphite Chile (44%) Australia (32%) Argentina (11%) t Indonesia (24%) Phillipines (16%) Australia (10%) Canada (10%) New Caledonia (7%) t China (69%) India (12%) Brazil (8%) t Chile (66%) Portugal (11%) United States (9%) 4 200t Russia (20%) Finland (16%) United Kingdom (13%) Norway (8%) t China (63%) Brazil (13%) Norway (7%) t Portugal Spain Austria Finland France (N.C.) Greece Poland Spain United Kingdom Austria Germany 86% 0% 59% 34% 99% 3% United Kingdom Nickel France Cobalt Nickel Portugal Lithium 472 (11.3%) Lithium Spain Lithium 136 (3.2%) Nickel Lithium Cobalt, Lithium Poland Copper (8.4%) Nickel 740 (0.3%) Cobalt Hungary Manganese (3.4%) Romania Manganese (0.8%) Austria Lithium Natural graphite 382 (0.4%) Nickel (0.3%) Greece Nickel Source: EU Criticality assessment 2017 Materials 30

31 Knowledge sources Materials Initiative Knowledge base RMIS Studies and projects ORAMA (H2020, ) SCRREEN expert network (H2020, ) CRM study (DG GROW, 2017) Materials Systems Analysis (DG GROW study, ) + JRC Minfuture (H2020, ) MICA (H2020, ) Minerals4EU (FP7, ) + GEO-ERA (H2020, ) ProSUM (H2020, ) SmartGround (H2020, ) Minventory (DG GROW study, ) MINEA (COST action, ongoing) Collaboration with key data providers Eurostat EuroGeoSurveys National data providers Materials 31

32 Do we have supportive regulatory framework? It is important to integrate raw materials in economic and industrial strategies materials policy and mineral planning policy frameworks in Europe contribute to secure supply to the economy Source: Minatura2020 Total number of laws per MS relevant for mining permitting procedures Source: MINLEX study Note: Germany has a decentralised system, and total number of laws only represents the example of Mecklenburg-Western Pomerania. The UK includes laws for England, Wales and Northern Ireland. Materials 32

33 Action Plan Circular Economy "Closing the loop. An EU action plan for the Circular Economy" Commission's Communication COM(2015) 614 final Transition towards a Circular Economy The value of products, materials and resources is maintained in the economy for as long as possible Waste generation is minimised Brings economic, social and environmental gains Materials 33