Analysis of the European Strategy for Critical Raw Materials as Defined in the CRMA: Focusing on Social, Circularity, and Governance Aspects

Details

Supervisors

Desmet, Carlos

Faculty

Louvain School of Management

Degree label

Master [120] : ingénieur de gestion, à finalité spécialisée

Abstract

Many new technologies in strategic sectors depend on using critical raw materials. This is one of the reasons why the European Union (EU) wants to ensure a sustainable and risk-free supply of these resources. In this context, the Critical Raw Materials Act (CRMA) was created. This study provides a comprehensive analysis of the EU's strategy for critical raw materials, focusing on sustainability-related aspects. It follows a qualitative research approach and uses semi-structured interviews with experts to gather insights and perspectives on the CRMA as well as on more specific themes such as strategic partnerships, governance, and social aspects. The findings indicate that stakeholders are generally satisfied with the legislation, despite the ambitious nature of its goals. The interviews underline the success of strategic project procedures and the crucial role of Member States in their implementation, while also noting the potentially negative impact on non-critical materials and protected areas. In terms of circularity, the overemphasis on recycling is criticized. A lot of other challenges also remain like the CRMA's interdependence with other legislation and the absence of demand reduction scenarios. On the social front, public perception presents a major challenge that could negatively impact the CRMA. In addition, indigenous communities express dissatisfaction with the absence of the term FPIC, which could have detrimental consequences for them. Moreover, while the CRMA has the potential to create jobs, these must be quality jobs that meet clear and well-defined criteria. Concerning the governance aspect, the importance of the Board, the European Commission, and certification schemes is emphasized. Still, an over-dependence on certification schemes is noted. Furthermore, strategic partnerships lack concreteness, and their win-win nature depends on the EU's ability to enable partner countries to develop their value chains, and meet their needs for technologies, investments, and infrastructure, while also influencing the sustainability and monitoring of these partnerships. Lastly, some terminology must be clarified further to reduce ambiguity or eliminated to reduce danger. In conclusion, these results enable readers of this thesis to comprehend the context of the CRMA and its repercussions, as well as provide insightful viewpoints for future legislation on this topic.