Wednesday, March 29, 2023

EU moves ahead on key raw material to boost domestic production

BRUSSELS (AP) – The European Union agreed Thursday to radically revise its policies on dealing with key raw materials, offering subsidies and other financial incentives to boost domestic production as well as placing limits on imports from countries such as China. Presented the plan to

The plans of the European Commission, the executive arm of the European Union, are essential to move towards a climate neutral economy, while also increasing its strategic independence in a changing world of geopolitical alliances.

“The EU is upping its game,” said Thierry Breton, commissioner for the internal market.

The linchpin in the proposal is a commitment to produce at least 40% of clean technology in the 27-nation bloc by 2030, while at the same time ensuring that no more than 65% of consumption of any strategic raw material comes from one. A third country – in practice, often China.

The EU now receives 98% of its rare earth materials, 97% of its lithium and 93% of its magnesium from China. Overall, the vital raw material is used in anything from solar panels to heat pumps and electric cars.

political cartoon on world leaders

political cartoon

At the same time seeking freedom from Chinese dependence, the European Union is seeking to form a select Critical Raw Materials Club of alliances with the likes of the United States and Canada, to further strengthen the Western bloc in an increasingly volatile global environment. Can go ,

“We are strengthening our cooperation with globally trusted trading partners to reduce the EU’s current dependence on just one or a few countries,” said European Commission President Ursula von der Leyen.

The plans still need to be approved by the EU’s 27 member states and parliament, a process that could take several months, perhaps more than a year.

To achieve its clean technology and strategic goals, the EU has been making a major economic turn for decades preaching the free market economic gospel and very flexible state aid rules and subsidies important to achieve its goals. is accepting the material as the building block to move from a fossil fuel to a green economy.

“Private financing alone may not be sufficient and the effective rollout of projects along the critical raw material value chain may require public support in the form of state aid,” said the European Commission proposal. It added that it had already adapted state aid rules “to allow further flexibility in providing aid to member states”.

“The objective is to make the process faster and simpler with easier calculations, simpler procedures and quicker approvals,” the commission said.

The plans for the Net-Zero Industry Act on Industrial Incentives are set to follow the plan for the critical raw material.

Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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