The European Union (EU) is set to release its strategies in its Green Deal Industrial Plan. EU hopes that doing so guarantees that its industries can compete with the United States and China in creating and producing clean tech products and acquiring the required raw materials.
The announcement will include the Net-Zero Industry Act and Critical Raw Materials Act, two centerpieces of the Green Deal Industrial Plan.
The goal is not only reducing carbon emissions but also ensuring that the region is ahead in the technology required to do so. The EU also seeks to make a target of producing at least 40% of the clean tech products it needs by 2030, partially by streamlining permits for green projects and increasing investment. The announcement also includes plans to mine 10% of the critical raw materials it consumes and increase processing to 40% of its needs by 2030.
The importance of critical raw materials for the Green Deal
Raw materials are essential to every aspect of life, from power generation to transportation, and even cell phones.
The supply of minerals vital for the green transition is a major challenge as China processes almost 90% of rare earths and 60% of lithium, a key element for batteries. A limited supply chain can be detrimental to the development and advancement of a region’s economy.
The EU is forced making import minerals vital to its economy from China and other countries, posing a national security threat as the region depends on external countries to provide the necessary raw materials.
The Critical Raw Materials Act
The Critical Raw Materials Act is a comprehensive solution designed for the EU’s greater control over its supply of vital raw materials.
The act includes measures to facilitate the production of key supplies within the EU, streamlined grants for green projects, and addressing the divisive issue of state aid. The goal is to move toward more sustainable, responsible, and efficient sourcing of raw materials.
The act will promote the production of critical raw materials within the EU while also increasing the efficiency of the processing of the materials.
The EU intends to achieve these goals by offering simpler state aid schemes, allowing subsidies to promote green technology, and offering tax breaks using existing EU funds. The act will enable the region to mine 10% of the strategic raw materials it consumes and increase processing to 40% of its needs by 2030. The EU believes that trade deals with Chile and Australia, the two largest producers of lithium, could ensure direct supply and reduce reliance on China.
Net-Zero Industry Act as part of Green Deal
The Net-Zero Industry Act aims to ensure that the EU’s industries are competitive in the green technology sector. It seeks to promote renewable energy sources and sustainable raw materials while decreasing the region’s overall carbon emissions.
The act seeks to streamline the process of granting permits for green projects, foster investment in net-zero industries, and reduce emissions in the production and manufacturing of goods.
The act will encourage the development and production of low-carbon industrial materials, like steel, cement, and chemicals.
The EU will set a target of producing at least 40% of the clean tech products it needs by 2030, encouraging domestic production of green technologies and reducing the reliance on imports. The act also supports the development of sustainable raw materials like biomass, recycled materials, and biodegradable materials.
The Benefits of Net-Zero Industry Act and Critical Raw Materials Act
The Net-Zero Industry Act and Critical Raw Materials Act aim to address a number of challenges facing the EU. The region will become more competitive in the global green tech market by increasing its domestic production and processing of vital raw materials.
The legislation will also improve the efficiency of the supply chain, reducing dependence on external countries and increasing the overall security of the region.