REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS On the implementation of the Raw Materials Initiative
Date: 2013-06-24
Institutions: European Commission
Subjects: EU initiative, competitiveness, management of resources, raw material, security of supply, sustainable development, third country, waste recycling

EUROPEAN 
COMMISSION 

Brussels, 24.6.2013  
COM(2013) 442 final 

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE 
COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE 
COMMITTEE OF THE REGIONS 

On the implementation of the Raw Materials Initiative 

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REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE 
COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE 
COMMITTEE OF THE REGIONS 

On the implementation of the Raw Materials Initiative 

1. 

BACKGROUND 

jobs 

In  the  Commission  Communication  of  4  November  2008  "The  raw  materials 
initiative  –  meeting  our  critical  needs  for  growth  and 
in  Europe" 
(COM(2008)0699)  and  in  the  Communication  of  2  February  2011  "Tackling  the 
challenges  in  commodity  markets  and  on  raw  materials"  (COM  (2011)0025, 
hereinafter  the  2011  Communication)  the  Commission  recognized  that  securing 
reliable  and  undistorted  access  to  raw  materials  is  an  important  factor  for  the  EU's 
competitiveness. The Communications launched and respectively reinforced the Raw 
Materials  Initiative  (RMI),  an  integrated  strategy  aimed  at  responding  to  different 
challenges  related  to  access  to  non-energy  and  non-agricultural  raw  materials.  The 
Raw Materials Initiative is based on three pillars: (1) ensuring a level-playing field in 
access  to  resources  in  third  countries;  (2)  fostering  a  sustainable  supply  of  raw 
materials from European sources; and (3) boosting resource efficiency and recycling.  

The Council endorsed the reinforced Raw Materials Initiative in its Conclusions on 
tackling  the  challenges  on  raw  materials  and  in  commodity  markets  of  10  March 
2011. 

The  European  Parliament  also  endorsed  the  strategy  in  its  Resolution  of  13 
September  2011.  In  the  Report  on  an  effective  raw  materials  strategy  for  Europe 
(2011/2056(INI)  the  European  Parliament  asked  to  be  regularly  informed  on  the 
development of non-energy  raw materials in the framework of the RMI and on the 
fulfilment  of  the  latter’s  objectives  via  an  annual  progress  report,  also  focusing  on 
policy coherence with regard to trade, development and environmental policies and 
social impacts, as well as data on Critical Raw Materials (CRM). 

The  Commission  adopted  its  Common  Position  on  this  Resolution  on  7  December 
2011.  

In  line  with  the  above,  the  aim  of  this  report  is  to  present  the  current  state  of  play 
with  respect  to  the  implementation  of  the  Raw  Materials  Initiative  and  provide  an 
overview  of  the  ongoing  initiatives  while  highlighting  the  joint  interest  for  the  EU 
and third countries rich in raw materials to work in partnership. 

2. 

CRITICAL RAW MATERIALS 

In  June  2010  the  Commission  published  an  expert  report,  which  established  a 
methodology  for  the  identification  of  raw  materials  deemed  critical  to  the  EU.  The 
assessment was based on a quantitative methodology using the criteria of economic 
importance,  supply  risk  and  environmental  country  risk.  Supply  risk  included 
components  such  as  political  and  economic  stability, 
level  of  production 
concentration, potential for substitution and recycling rate. Forty-one materials were 
evaluated  based  on  this  methodology.  The  report  put  forward  a  list  of  fourteen 
critical  raw  materials:  antimony,  beryllium,  cobalt,  fluorspar,  gallium,  germanium, 

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graphite, indium, magnesium, niobium, platinum group metals, rare earth elements, 
tantalum and tungsten.  

The  critical  raw  materials  list  has  proven  successful  in  serving  as  a  tool  to  raise 
attention  of  policy-makers,  promote  co-ordination  of  national  policies  regarding 
mineral  supply  and  critical  materials,  challenge  trade  distortive  measures  regarding 
critical  raw  materials,  analyse  the  functioning  of  the  markets,  promote  research 
(exploration, substitution, recycling) as well as promote access to deposits in the EU, 
address problems of illegal exports end-of-life products containing critical materials 
and undertaking measures for specific materials.  

In its 2011 Communication the Commission formally adopted this list and proposed 
that  it  will  monitor  the  issues  of  critical  raw  materials  to  identify  priority  actions, 
examine them with Members States and stakeholders and regularly update the list of 
critical raw materials at least every 3 years. 

In order to revise the list of critical raw materials by the first half of 2014, and to take 
into  account  inputs  and  recommendations  from  the  public  consultation  and  EP 
Report,  the  Commission  services  has  contracted  a  study.  The  study  will  aim  at 
collecting  data  on  the  above-mentioned  materials  needed  to  calculate  criticality; 
gathering data and analysing the supply chain (interaction and associated risks) and 
identifying potential bottlenecks with special attention paid to the specific situation 
of by-products; developing supply and demand scenarios; examining the potential of 
refining the well-functioning methodology without "altering" it and gathering related 
data; examining the application of the methodology to wood and natural rubber; as 
well  as  calculating  and  determining  the  critical  raw  materials  list  and  formulating 
recommendations.  

The following raw materials are to be examined within this review: the current list of 
14  critical  raw  materials;  selected  “nearly  critical  raw  materials”,  such  as  rhenium 
and  tellurium  notably  identified  during  the  initial  exercise;  selected  additional 
materials, such as hafnium, selenium and tin (as in line with new sources, such as the 
2011 JRC Report1 on “Critical Metals in strategic energy technologies”), wood and 
natural  rubber  that  was  added  in  the  scope  of  the  RMI  by  the  Commission's  2011 
Communication. 

The  process  will  be  accompanied  by  an  ad  hoc  steering  group  on  critical  raw 
materials  selected  for  the  first  assessment  of  critical  raw  materials  in  2010  from 
within the Commission's Raw Materials Supply Group.  

The Commission plans to issue a report to the European Parliament and the Council 
on the review of the critical raw materials list by the end of 2013. 

3. 

STOCKPILING 

In  the  Commission's  2011  Communication  the  Commission  announced  that  it  was 
"ready to examine with Member States and industry the added value and feasibility 
of a possible stockpiling programme of raw materials".  

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Critical Metals in Strategic Energy Technologies: Assessing Rare Metals as Supply-Chain Bottlenecks 
in Low-Carbon Energy Technologies, R.L.Moss, E.Tzimas, H.Kara, P.Willis and J.Kooroshy, European 
Commission, Joint Research Center, Institute for Energy and Transport, 2011. 

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In order to explore the option of stockpiling, the Commission services contracted a 
study  to  carry  out  a  preliminary  assessment  which  analysed  different  stockpiling 
policies and practices, including the EU stockpiling programme for oil, examined the 
current  raw  material  stockpiling  schemes  employed  worldwide  and  examined  the 
potential costs and benefits of a stockpiling programme of critical raw materials. The 
independent study considered as a valid option the possibility to organise a voluntary 
stockpiling scheme by the industry with public financial support. It also recognises 
that  stockpiling  can  only  solve  short-term  problems  whereas  long-term  shortage  of 
raw  materials  requires  structural  solutions  with  regards  to  supply  (substitution, 
recycling, domestic extraction). Stockpiling is also an instrument lacking flexibility 
as  volumes  cannot  be  adjusted  quickly  and  the  cost  of  its  implementation  is 
substantial. Moreover, stockpiling would require a perfect knowledge of value chains 
and the uses of each raw material as well as processing facilities (if these facilities 
are not themselves guaranteed there is not much point in stockpiling). Stakeholders' 
opinion on stockpiling is also much divided. The results of the study were discussed 
with  the  Commission's  Raw  Materials  Supply  Group  in  November  2012  and  the 
reactions  on  the  potential  stockpiling  programme  were  negative.  No  Member  State 
would support a stockpiling scheme as a policy option. 

The Commission will continue to monitor this issue. 

4. 

EUROPEAN INNOVATION PARTNERSHIP ON RAW MATERIALS 

Innovation in raw materials can be a key driver for progress within each of the three 
pillars  of  the  Raw  Materials  Strategy  and  should  be  applied  across  the  entire  value 
chain.  Within  the  Europe  2020  Flagship  on  Innovation  Union,  the  Commission  is 
launching  different  partnerships  covering  various  challenges  of  relevance  for  our 
societies.  In  the  2011  Communication  the  Commission  announced  its  intention  to 
assess  whether  to  launch  an  Innovation  Partnership  on  raw  materials  within  the 
Europe  2020  Flagship  on  Innovation  Union.  The  European  Parliament  called  upon 
the  Commission  to  launch  the  European  Innovation  Partnership  (EIP)  on  raw 
materials in its resolution of 13 September 2011. 

On  29  February  2012  the  Commission  therefore  adopted  a  Communication 
proposing the EIP on raw materials2 (hereinafter the EIP Communication).  

The  Competitiveness  Council  endorsed  this  proposal  on  11  October  2012  in  its 
Conclusions  and  invited  the  Commission  to  launch  the  Raw  Materials  EIP  and  to 
develop and finalise the Strategic Implementation Plan by the end of 2013.  

The  EIP  will  aim  to  provide  Europe  with  enough  flexibility  and  alternatives  in  the 
supply  of  important  raw  materials,  whilst  taking  into  account  the  importance  of 
mitigating  the  negative  environmental  impacts  of  some  materials  during  their  life 
cycle.  The  EIP  will  address  all  stages  of  the  value  chain,  from  exploration, 
extraction,  via  processing,  to  recovery  and  recycling  as  well  as  innovations  in  the 
area  of  substitution.  One  of  its  concrete  targets  is  actually  to  support  up  to  ten 
innovative  pilot  actions  /  demonstration  plants  in  the  various  sectors  of  the  value 
chain.  The  EIP  is  not  a  funding  instrument,  but  it  will  bring  the  different  actors 

2 

Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European  Social 
and Economic Committee and the Committee of Regions "Making raw materials available for Europe's 
future well-being. Proposal for a European Innovation Partnership on Raw materials" (COM(2012) 82 
final).  

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together to come up with appropriate technical and non-technical solutions to bring 
innovation  to  the  market.  Its  objective  will  be  to  push  Europe  to  the  forefront  in 
exploration, extraction, processing, recycling and substitution by 2020. This EIP will 
bring together Member States and other stakeholders. The Commission has foreseen 
five  work  packages,  which  will  cover  technological  but  also  non-technological 
working  areas  (e.g.  framework  conditions,  standardisation,  knowledge  and  skills, 
public procurement) and a work package on international co-operation.  

A number of concrete targets should be achieved by the EIP by 2020: 

Setting  up  to  10  innovative  pilot  actions,  e.g.  demonstration  pilot  plants  on 
exploration, mining, processing, collecting and recycling  

Finding substitutes for at least three applications of critical raw materials 

Setting up a network of Research, Education and Training Centres on sustainable raw 
materials management 

Using  EU  standardised  instruments  for  the  survey  of  resources/reserves  and  3-D 
geological map 

Ensuring  dynamic  modelling  of  trends:  link  demand  and  supply  with  reserves  and 
complete life cycle assessment  

Ensuring a pro-active European strategy at bilateral and multilateral level 

With regards to the governance structure, the High Level Steering Group is assisted 
by its Sherpa group, and with the technical support of operational groups, will start 
developing the Partnership's Strategic Implementation Plan (SIP). The objective will 
be  to  develop  the  SIP  by  July  2013  so  as  to  start  its  implementation  as  soon  as 
possible. The SIP will be followed by a Commission Communication in September 
2013  which  inter-alia  will  put  forward  the  Commission  support  to  the  EIP,  e.g.  in 
terms  of  research  and  innovation  funding  priorities,  regulatory  and  policy 
framework. 

5. 

FAIR  AND  SUSTAINABLE  SUPPLY  OF  RAW  MATERIALS  FROM  GLOBAL  MARKETS 
(PILLAR 1) 

5.1. 

EU Trade Strategy for Raw Materials 

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In  the  2011  Communication  the  Commission  committed  to  reinforcing  its  Raw 
Materials Trade Strategy in line with development and good governance objectives. 
The Commission considered it should: 

continue  to  develop  bilateral  thematic  raw  materials  dialogues  with  all  relevant 
partners,  and  strengthen  ongoing  debates  in  pluri–  and  multi-lateral  forums 
(including e.g. G20, UNCTAD, WTO, OECD); carry out further studies to provide a 
better  understanding  of  the  impact  of  export  restrictions  on  raw  materials  markets, 
and foster a dialogue about their use as a policy tool.  

further  embed  raw  materials  issues,  such  as  export  restrictions  and  investment 
aspects,  in  ongoing  and  future  EU  trade  negotiations  in  bilateral,  pluri-lateral  and 
multilateral frameworks. 

pursue  the  establishment  of  a  monitoring  mechanism  for  export  restrictions  that 
hamper the sustainable supply of raw materials, and will continue to tackle barriers 
distorting  the  raw  materials  or  downstream  markets  with  dialogue  as  the  preferred 
approach, but using dispute settlement where justified.  

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encourage within the OECD, activities the inclusion of relevant non-OECD members 
in  the  work  on  raw  materials,  and  explore  further  multilateral  and  pluri-lateral 
disciplines including consideration of best practice. 

use competition policy instruments to ensure that the supply of raw materials is not 
distorted  by  anti-competitive  agreements,  mergers  or  unilateral  actions  by  the 
companies involved.  

take  forward  the  above-mentioned  actions,  and  further  analyse  priorities  for  raw 
materials  in  relation  to  third  countries  through  autonomous  measures,  bilateral  and 
multilateral frameworks and dialogue; and continue to pursue a consistent EU trade 
policy on these priorities. 

the  trade-related  raw  material  policy  commitments  of  the  RMI  have  been 
implemented through inclusion of rules in agreements to achieve sustainable supply 
of  raw  materials  at  multilateral  and  bilateral  level,  including  WTO  accession 
negotiations  and  Free  Trade  Agreements  (FTAs).  Other  important  actions  were 
focusing  on  WTO  enforcement  activities  notably  in  relation  to  the  successful 
activities  as  pursued  under  the  WTO  dispute  settlement  case  on  export  restrictions 
against China's measures on raw materials.  

effective  action  has  been  taken  resulting  in  provisions  in  a  large  number  of 
agreements.  The  Commission  concluded  or  agreed  on  the  text  of  disciplines  on 
export  duties  in  FTAs  with  Colombia,  Peru,  and  Ukraine  and  in  an  Association 
Agreement with Central America. In these agreements, the EU managed to obtain a 
horizontal  ban  of  both  existing  and  future  export  duties  while  allowing  for  certain 
transition  periods  or  limited  exceptions.  Bilateral  negotiations  are  on-going  with  a 
number  of  trade  partners  including  Canada,  India,  Malaysia,  Mercosur  and 
Singapore.  In  some  negotiations,  provisions  on  investment  protection  are  tabled, 
which are in particular relevant to the extractive industry. 

Moreover,  raw  materials  were  addressed  through  trade  provisions  in  the  negotiations  of 
Partnership and Co-operation Agreements, which were concluded with Mongolia in 2010 and 
launched with Australia, Kazakhstan and Russia. 

In  line  with  the  Cotonou  Agreement's  objective  to  support  deeper  regional  integration, 
modernise our economic relationship and use trade to boost economic growth, as recalled in 
the  recently  adopted  Communication  "Trade,  growth  and  development  –  tailoring  trade  and 
investment  policy  for  those  countries  most  in  need"3,  the  EU  started  negotiations  with 
African,  Caribbean  and  Pacific  countries  in  2002  to  conclude  Economic  Partnership 
Agreements.  Negotiations,  including  on  raw  materials  provisions,  continue  with  all  regions 
duly taking into account the objectives of the development partners. 

As  regards  negotiations  in  the  WTO  in  the  context  of  Russia's  WTO  accession  negotiations 
(completed at the end of 2011), the Commission in addition to commitments undertaken on 
existing export duties as part of the accession protocol, secured an additional agreement not to 
resort to export duties on a large number of raw materials. WTO accession negotiations are 
on-going with Kazakhstan. 

There  was  the  successful  launch  and  conclusion  of  a  WTO  dispute  settlement  case  against 
export  restrictive  measures  applied  by  China  on  nine  raw  materials  in  violation  of  WTO 

3 

Communication from the Commission to the European Parliament, the Council and the European and 
Social Committee and the Committee of Regions "Trade, growth and development. Tailoring trade and 
investment policy for those countries most in need", COM(2012) 22 final. 

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commitments. The Appellate Body confirmed the ruling of the panel in January 2012, giving 
a clear and final interpretation of China's commitments under the WTO. On 13 March 2012, 
the EU launched a second challenge of China’s export restrictions on raw materials including 
17 rare earths, tungsten and molybdenum. 

A  number  of  outreach  activities  were  pursued  in  international  forums  such  as  G20  and  the 
OECD  aiming  at  fostering  a  global  dialogue  on  how  to  achieve  a  framework  to  ensure  a 
sustainable supply of raw materials. 
The  second  activity  report4  on  EU  Trade  Policy  for  Raw  Materials  of  April  2012  provided 
detailed information about the implementation of the Raw Materials Initiative in the area of 
trade policy. 

The Commission will continue to monitor ongoing and future negotiations of FTAs and other 
bilateral  frameworks  to  ensure  that  the  issue  of  raw  materials  is  considered  and  integrated, 
where appropriate. 

5.2. 

Raw materials dialogues and diplomacy 

In the 2011 Communication, the Commission stated that the EU will actively pursue a "Raw 
Materials  Diplomacy"  with  a  view  to  securing  access  to  raw  materials,  in  particular  the 
critical ones, through strategic partnerships and policy dialogues.  

The Raw Materials Diplomacy aims to engage with partners though strategic partnerships and 
policy dialogues to exchange information and work together to address the challenges on raw 
materials'  markets.  This  path  has  been  pursued  with  the  United  States,  Japan,  Russia, 
Argentina, Brazil, Colombia, Mexico, Uruguay, Greenland, China and countries of the Union 
for the Mediterranean while further dialogues are in preparation.  

5.2.1.  United States 

On 29 November 2011, the Transatlantic Economic Council (TEC) agreed to a Raw Materials 
Work Plan, which includes preparation of a joint inventory of mineral raw materials data and 
analysis  maintained  by  both  sides.  As  part  of  this  effort,  the  two  sides  were  instructed  to 
consider the results of ongoing European Commission and United States Government studies 
of  raw  materials  resource  availability,  trade  flows,  and  criticality  and  of  other  supply  and 
demand analyses, such as the 2010 European Commission report by an ad-hoc expert group5 
on  critical  raw  materials  and  the  strategy  of  the  U.S.  Department  of  Energy  on  critical 
materials. The TEC Innovation Action Plan6 has been launched in the area of raw materials, 
covering different policy aspects including trade and substitution. 

An EU-US Expert Workshop on mineral raw material flows and data was held in Brussels on 
September 2012. The workshop compared information available to both jurisdictions in terms 
of  primary  and  secondary  raw  materials,  compared  methodologies  for  review  of  the  critical 
raw  material  list  and  discussed  areas  where  material  flow  information  is  insufficient.  The 
European Union and the United States will further explore steps to create a joint raw materials 
data inventory and other means to share raw materials data in the context of current policies 
on both sides to enable reliable and diverse raw materials supplies.  

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"EU  Trade  Policy  for  Raw  Materials,  Second  ActivitiyActivity  Report",  European  Commission, 
Directorate-General for Trade, May 2012.  
"Critical  raw  materials  for  the  EU",  Report  of  the  Ad-hoc  Working  Group  on  defining  critical  raw 
materials, July 2010. 
Transatlantic Innovation Action Partnership Work Plan, Transatlantic Economic Council, October 27, 
2009.  

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The European Union and the United States are looking to define areas in which the recycling 
of  used  electronics  can  be  improved,  particularly  when  that  recycling  can  address  resource 
scarcity  of  critical  materials  and  lessen  the  impact  on  the  environment  throughout  the  life 
cycle of the electronics. In October 2012 a conference on “Best Practices in Management and 
Stewardship of Used Electronics” in Washington brought together the representatives of the 
U.S.  Government  and  the  European  Commission  as  well  as  European  and  American 
companies  and  trade  associations  to  explore  new  paths  for  transatlantic  co-operation  in  the 
area of electronic waste management.  

5.2.2. 

Japan  

Two workshops took place in Washington in October 2011 and in Tokyo in March 2012 with 
a focus on research in the area of raw materials, particularly substitution. The next trilateral 
meeting  between  the  EU,  US  and  Japan  with  government  representatives,  the  European 
Commission  and  industry  delegations  will  take  place  on  29-30  May  2013  in  Brussels.  The 
focus  this  year  will  be  on  the  development  and  implementation  of  new  models  in  efficient 
management of critical materials. 

5.2.3.  Russia 

The meeting of the industrial policy dialogue sub-group between the Russian government and 
the  European  Commission  with  industry  delegations  took  place  in  October  2012  in  St 
Petersburg.  The  Commission  gave  an  overview  of  the  latest  developments  in  raw  materials 
policy as well as an update on industrial policy.  

5.2.4.  Latin America 

In 2011 Vice-President Tajani signed Letters of Intent to launch bilateral co-operation on raw 
materials with Chile and Uruguay and issued a joint press release with Argentina. Letters of 
Intent were also signed with Columbia and Mexico in May 2012.  

The  implementation  of  the  Memorandum  of  Understanding  with  Uruguay  was  further 
discussed  in  September  2012.  Local  contact  points  were  appointed.  Both  sides  agreed  to 
exchange  best  practice  and  develop  a  roadmap  for  concrete  actions  to  strengthen  mutual  
co-operation  in  particular  in  the  areas  of  geological  knowledge,  green  economy  and  energy 
efficiency,  recycling,  transparency,  training,  sustainability,  innovation,  etc.  Uruguay  was 
offered to participate as observer in the European Innovation Partnership. 

5.2.5.  Euro-Mediterranean countries 

Memoranda  of  Understanding  between  the  Commission  and  Morocco  and  Tunisia  were 
signed  in  November  2012.  A  workshop  on  raw  materials  in  the  context  of  the  Euro-
Mediterranean  industrial  co-operation  took  place  in  October  2012  with  the  countries  of  the 
Union for the Mediterranean. 

5.2.6.  China 

The Commission is engaged in two dialogues related to raw materials with China - with the 
NDRC (National Development and Reform Commission), a Metals Working Group and with 
the Ministry of Industry and Information Technology (MIIT). The latter dialogue takes place 
within a Working Group on Raw Materials established in 2010. 

The last meeting took place in March 2012 in Beijing, and the following is to take place in the 
second  half  of  2013  in  Brussels.  A  workshop  on  recycling  and  a  study  visit  for  Chinese 
experts in Europe should also take place in the second half of 2013. 

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5.2.7.  Greenland 

Greenland, as Europe's closest resource-rich neighbour, possesses significant reserves of rare 
earths.  In  June  2012,  the  Commission  signed  a  Letter  of  Intent  on  co-operation  on  raw 
materials with the Greenlandic Government. Both Greenland and the European Union agreed 
to  work  together  to  establish  a  formal  cooperation  on  raw  materials  thereby  extending  the 
current good cooperation in the framework of the EU – Greenland Agreement.  

The  letter  of  intent  proposes  for  areas  of  co-operation:  geological  knowledge;  analysis  of 
infrastructure  and  investment  needs  related  to  the  exploitation  of  mineral  resources; 
competence building; environmental issues related to mining and social impacts of mining. 

The letter also recognizes the importance of fair competition conditions and market access in 
order for the co – operation to be mutually beneficial. 

To follow-up on the dialogue established by this Letter, a workshop with European industry, 
both the mining industry and end-user, took place in September 2012 to discuss the potential 
of co-operation with Greenland. A workshop between the Commission and the government of 
Greenland  took  place  on  the  same  day  to  discuss  the  future  of  this  dialogue  and  agree  on 
concrete projects. 

6. 

DEVELOPMENT POLICY 

Sustainable  mining  can  and  should  contribute  to  sustainable  development.  The  EU’s 
development policy also has an important role to play in Raw Materials Diplomacy, building 
win-win situations for developing countries and the EU in the area of raw materials. 

6.1. 

Joint Africa-EU Strategy and ACP framework 

In  the  context  of  the  Strategic  Partnership  between  Africa  and  the  EU,  both  sides  agreed  to 
intensify  their  co-operation  in  the  area  of  raw  materials.  The  College  to  College  meeting 
between the African Union Commission (AUC) and the European Commission (EC) in June 
2010 identified the basic principles for joint work which were endorsed by the III. EU-Africa 
Summit in in November 2010 and integrated in the Action Plan 2011-2013.  

The bilateral co-operation between the AUC and the EC on  raw  materials  and development 
issues is based on the EU Raw Materials Initiative and the African Union policy on mining 
and  minerals,  the  2009  'African  Mining  Vision'7.  The  co-operation  focuses  on  three  areas: 
governance,  investment  and  infrastructure  and  geological  knowledge  and  skills.  The 
Commission  and  Member  States  work  jointly  on  these  issues.  The  EU  remains  open  to 
requests  from  African  countries  within  the  framework  of  development  policy  programs.  At 
this stage, no specific requests have been received under regional or national programming. 
Furthermore, the Commission intends to promote EU-Africa cooperation in this critical area 
through  the  new  Pan-African  Program  under  the  DCI  as  proposed  within  the  new  Multi-
annual Financial Framework 2014-2020.  

The  Commission  recognises  the  crucial  role  of  good  governance  for  the  sustainable  use  of 
natural  resources  as  an  engine  of  growth  for  Africa  and  in  this  vein  delivered  a  capacity 
building workshop at technical level on mining taxation in Addis Ababa in December 2011. 
The  conclusions  of  the  Workshop  were  presented  during  the  African  Union  Mining 
Ministerial in December 2011. In agreement with the African Union, the Commission plans to 
organize a second edition of the Mining Taxation Workshop in 2013 subject to availability of 

7 

Africa Mining Vision, African Union, February 2009. 

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funds  within  the  African  Union  budget.  The  joint  conference  also  identified  a  need  for  a 
capacity building project on contract negotiations. 

At political level, a High-Level Conference on the EU-Africa Partnership on Raw Materials - 
Translating Mineral Resource Wealth into Real Development for Africa took place in January 
2012 in Brussels. The conference created the political momentum for the implementation of 
the Joint Strategy’s Action Plan 2011-2013 on raw materials and engaged all stakeholders in 
this  process.  It  delivered  recommendations  for  implementation  in  all  three  areas  of  co-
operation.  

The Commission committed in its RMI to continue to assess – with African countries – the 
feasibility of assisting further co-operation between both continents' geological surveys and to 
promote  co-operation  in  this  area  in  multilateral  forums  such  as  UNESCO's  Geosciences 
Programme.  Following  the  conference  recommendation  in  this  area  to  strengthen  the  co-
operation  between  the  African  and  European  geological  surveys,  a  scoping  study  on  this 
subject  is  foreseen  to  commence  in  2013.  Its  aim  is  to  establish  joint  projects  to  improve 
knowledge  about  African  deposits,  set  up  a  network  for  delivery of  trainings  to  the  African 
surveys as well as for exchange and digitalisation of data. The European geological surveys 
have a crucial role to play in this process. 

The European Investment Bank is actively present in the mining sector in the framework of 
the  ACP  Investment  Facility.  However,  due  to  the  recent  downturn  in  the  mining  cycle  for 
some  minerals  and  the  pressure  from  the  NGOs,  the  Bank  has  been  more  selective  in  its 
choice  of  projects  to  be  financed,  carefully  assessing  the  merits  of  each  one  identified  with 
due regard given to environmental and social aspects8.  

6.2. 

Promoting financial transparency 

In  the  2011  Communication  the  Commission  made  a  commitment  to  "promote  more 
disclosure of financial information for the extractive industry, including the possible adoption 
of  a  country-by-country  reporting  requirement"9.  On  25  October  2011  the  Commission 
adopted  a  legislative  proposal  requiring  the  disclosure  of  payments  to  governments  (e.g. 
corporate  income  taxes,  royalties,  fees,  production  entitlements,  bonuses  and  other  material 
benefits) on a country and project basis by listed and large unlisted companies with activities 
in  the  extractive  (oil,  gas  and  mining)  and  logging  of  primary  forest  sectors.  Following 
discussions  within  both  the  Parliament  and  Council,  and  a  number  of  trilogues  among  the 
latter and the Commission, a political agreement has been reached now for the adoption of the 
corresponding legislation.  

The Commission also proposed in 2010 Tax and Development Communication and its 2011 
Communication  to  enhance  European  financial  and  political  support  for  the  Extractive 
Industries Transparency Initiative (EITI), and help developing countries implement it.  

The EITI is a global standard that promotes revenue transparency in resource-rich countries, 
requesting  companies  to  publish  payments  to  governments  and  governments  to  publish  the 

8 

9 

566  million  EUR  under  first  financial  protocol  of  the  Cotonou  Agreement  (2003-2008)  went  to  the 
mining sector which represented 15% of the initial endowment of the ACP Investment Facility and EIB 
Own Resources. 
The US adopted in July 2010 a disclosure requirement (section 1504 of the US Dodd Frank Act) that 
requires  all  extractive  companies  (e.g.  oil,  natural  gas  or  minerals)  listed  on  US  stock-exchanges  to 
publish payments made to governments (e.g. royalties, fees, production entitlements, bonuses, and other 
material  benefits)  on  a  per  country-and-project  basis.  In  order  to  enforce  this  legislation,  final 
implementing  rules  were  adopted  on  22  August  2012  by  the  US  Securities  Exchange  Commission 
(SEC).  

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revenues  effectively  received  from  companies,  thus  enhancing  transparency  and  aiming  to 
reduce tax avoidance and corruption in extractive activities. This is particularly important as 
developing countries often finance an important share of their budget from these activities and 
as the potential for future revenues remains high in times of globally increasing scarcity. 

The  EITI  brings  together  country  stakeholders  from  government,  civil  society,  oil,  gas  and 
mining companies and investors into a national Multi-Stakeholder Group. This unique set-up 
is an excellent example of how to pursue better governance10. 

The EU supports the EITI, both politically and financially. The Commission is a member of 
the  EITI  board  and  encourages  countries  rich  in  natural  resources  to  join  the  initiative. 
Financially, the EU has funded directly some EITI capacity building activities, such as the bi-
annual  EITI  National  Co-ordinators  Meetings,  which  allows  for  peer  to  peer  reviews  and 
capacity building of the National Co-ordinators. Furthermore, the EU contributes to the World 
Bank-administered  EITI  Multi-Donors  Trust  Fund  which  fulfils  two  important  aims:  (i)  it 
assists countries to accede to the EITI or to maintain their status as compliant countries; (ii) it 
helps civil society organisations to contribute more effectively to this transparency effort and 
how to put to good use the information obtained through the disclosure of tax payments. 

6.3. 

Promoting supply chain transparency 

In  the  2011  Communication,  the  Commission  recognises  that  many  of  the  raw  materials 
which  the  EU  imports  are  produced  in  a  few  countries,  some  of  which  are  subject  to  low 
political and economic stability11.  

In  the  same  2011  Communication,  the  Commission  also  proposed  to  "examine  ways  to 
improve transparency throughout the supply chain and tackle, in coordination with key trade 
partners, situations where revenues from extractive industries are used to fund wars or internal 
conflicts". 

The  Commission  is  closely  involved  in  international  efforts  to  address  the  issue  of  conflict 
minerals and strongly supports the OECD's Due Diligence Guidance on Responsible Supply 
Chains of Minerals of Minerals from Conflict-affected and High Risk Areas. The Commission 
also  participates  in  the  meetings  of  the  ICGLR  (International  Conference  on  Great  Lakes 
Region)-OECD-UN  Group  of  Experts  on  Due  Diligence  for  Responsible  Sourcing  the  3Ts 
(tin,  tungsten  and  tantalum)  and  Gold  Supply  Chains  and  also  encourages  the  industry  to 
implement the guidance. 

10 

With  its  focus  on  the  transparency  of  payments  (corporate  taxes,  royalties,  etc.)  by  multinational 
companies  to  their  host  countries,  the  EITI  is  doing  much  in  fostering  the  development  agenda.  It  is 
setting the ground for Parliaments and for civil society in countries rich in natural resources to enquire 
about, to understand, to assess whether their own countries receive the payments which they are due. 

Currently  the  EITI  is  seeking  to  strengthen  its  reporting  requirements  to  further  improve  the  governance  in 
candidate  and  compliant  EITI  countries.  This  will  include  among  other  areas  a  description  of  how 
extractive industry revenues are allocated (inside and outside the budget), the disclosure of subnational 
transfers,  contract  transparency  (public  accessibility)  and  the  introduction  of  project-by-project 
reporting. 

With  these  changes  in  the  requirements,  the  EITI  increases  its  role  as  an  important  instrument  to  attain  EU 
development policy objectives by promoting transparency, domestic accountability and thus enhancing 
public and corporate governance in resource-rich developing countries. 
For one of these increased-risk countries – the Democratic Republic of Congo – the OECD considers 
that trade in certain minerals, namely in tantalum, tungsten, tin and gold, has a potential to exacerbate 
regional conflict in specific eastern Congolese regions. 

11 

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The International Taskforce on illegal exploitation and trade of natural resources in the Great 
Lakes  Region  was  reactivated  in  May  2012.  The  Taskforce  provides  the  international 
community and the OECD Secretariat with a platform for discussion. 

As  regards  traceability  of  minerals,  the  Commission  is  exploring  ways  of  improving 
transparency throughout the supply chain, including aspects of due diligence, thereby building 
on  the  experience  of  the  well-established  Kimberley  Process,  the  EITI,  the  Forest  Law 
Enforcement, Governance and Trade (FLEGT) Action plan and the Timber Regulation. The 
Commission is also exploring ways to provide political and financial support to the "Regional 
Initiative on Illegal exploitation of Natural Resources" of the International Conference for the 
Great  Lakes  Region  which  includes  the  set-up  of  a  mechanism  aiming  at  certifying  conflict 
free minerals sourced in the region. This process is part of a broader comprehensive response 
to contribute to curb the link between the financing of armed groups and the exploitation of 
natural resources in the Great Lakes region which also includes EU support to the use of the 
OECD  due  diligence  guidance  for  responsible  supply  chains  management.  An  exploratory 
workshop  to  address  due  diligence  and  explore  possible  EU  action  took  place  in  December 
2012 Moreover, the Commission launched a public stakeholder consultation in March 2013 to 
get interested parties' views on a potential EU initiative for responsible sourcing of minerals 
coming from conflict-affected and high-risk areas – for example, war zones, post-war zones, 
and  areas  vulnerable  to  political  instability  or  civil  unrest.  The  Commission  will  use  the 
results  of  the  public  consultation  to  decide  whether  to  complement  and/or  support  in  a 
reasonable and effective manner on-going due diligence initiatives on responsible sourcing of 
minerals.  Any  EU  action  in  this  field  must  also  take  into  account  the  administrative  cost 
burden for the industry to avoid withdrawal of operations from those countries. 

7. 

FOSTERING SUSTAINABLE SUPPLY WITHIN THE EU (PILLAR 2) 

7.1. 

Facilitating Exchange of Best Practices 

The Commission acts mainly as a facilitator for the exchange of best practice as many of the 
areas related to extractive industries fall within the competence of the Member States.  

In  the  2011  Communication  the  Commission  considered  that  the  following  practices  are 
particularly important in promoting investment in extractive industries: 

– 

– 

– 

defining a National Minerals Policy, to ensure that mineral resources are exploited in 
an  economically  viable  way,  harmonised  with  other  national  policies,  based  on 
sustainable  development  principles  and  including  a  commitment  to  provide  an 
appropriate legal and information framework; 

setting up a land use planning policy for minerals that comprises a digital geological 
knowledge  base,  a  transparent  methodology  for  identifying  mineral  resources,  long 
term  estimates  for  regional  and  local  demand  and  identifying  and  safeguarding 
mineral  resources  (taking  into  account  other  land  uses)  including  their  protection 
from the effects of natural disasters; 

putting in place a process to authorise minerals exploration and extraction which is 
clear,  understandable,  provides  certainty  and  helps  to  streamline  the  administrative 
process (e.g. the introduction of lead times, permit applications in parallel, and one-
stop-shop when the Member States' system allows for it). 

Following  the  launch  of  the  Commission's  Raw  Materials  Initiative  in  2008,  an  increasing 
number  of  Member  States  (such  as  France,  Germany,  Finland,  Greece,  the  Netherlands  and 
recently  Portugal)  have  been  developing  national  strategies,  which  can  be  considered  as 
complimentary to the EU raw materials strategy. 

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In  2010  the  Commission  also  provided  guidance  on  how  extraction  and  the  protection  of 
sensitive  ecosystems  can  take  place  by  issuing  the  Guidelines  on  Non-Energy  Extractive 
Industry  (NEEI)  and  Natura  200012.  Regarding  monitoring  of  the  progress  of  NEEI  and 
Natura 2000 guidelines, appropriate indicators were included in a proposed set of indicators.  

The  Working  Group  on  the  exchange  of  best  practices  in  land  use  planning,  permits  and 
geological knowledge sharing was set up in 2009 in order to encourage improvements of the 
current  framework  relating  to  the  activities  of  extractive  industries.  The  Working  Group 
produced  a  report  on  the  exchange  of  best  practice  in  minerals  policy,  land  use  planning, 
permits and geological networking in June 2010.  

The  Commission  proposed  to  "assess  with  the  Member  States,  in  full  respect  of  the 
subsidiarity  principle,  the  feasibility  of  establishing  a  mechanism  to  monitor  actions  by 
Member States in the above area, including the development of indicators".  

The indicators proposed by the Commission cover the following areas:  

– 

– 

– 

National  Minerals  Policy  indicators  (legal  framework  indicators  and  information 
framework indicators) 

Land Use Planning indicators 

Authorisation  and  Permits  indicators  including  the  application  of  the  Guidance  on 
NEEI and Natura 2000. 

The indicators shall enable the Commission and Member States to assess the current situation 
and identify areas where improvement will be appropriate on a voluntary basis. On the basis 
of the responses received from the Member States to the proposed indicators the Commission 
will proceed to propose a set of indicators to be regularly monitored. The questionnaires with 
indicators were sent to Member States, and preliminary results of replies were discussed at the 
RMSG meeting in November 2012. The majority of Member States have responded, as well 
as other countries, regions and industry. In-depth analysis and evaluation is taking place. The 
results will be presented in mid-2013 and will provide input to the EIP. 

7.2. 

Enhancing EU knowledge base 

The Commission proposed to assess with the Member States the scope for increased synergies 
between national geological surveys that would allow for economies of scale, reduced costs 
and  increased  potential  to  engage  in  joint  projects  (e.g.  harmonised  minerals  database, 
European Raw Materials Yearbook). In the medium term, any synergies should contribute to 
an  improved  European  raw  materials  knowledge  base  in  a  co-ordinated  way,  in  particular 
taking into account the official road map and progress in implementing the European Spatial 
Data  Infrastructure  (as  defined  by  the  Directive  2007/2/EC  –  INSPIRE)  by  all  EU  Member 
States as well as future opportunities within the Copernicus programme. 

Fulfilling its commitment to "further enhance the knowledge base necessary for an efficient 
raw materials strategy" the Commission launched several studies and research projects. 

7.2.1.  Availability of data on resources and reserves 

Since data on mineral resources is included in the data scope of the INSPIRE directive access, 
availability as well as comparability of data/information related to mineral reserves, resources 
and endowments in the EU Member States should be improved by 2020.  

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EC  Guidance  on  undertaking  new  non-energy  extractive  activities  in  accordance  with  Natura  2000 
requirements, European Commission, July 2010 

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Meanwhile  due  to  the  unavailability  of  the  data  on  resources  and  reserves  of  primary  raw 
materials  within  the  remit  of  EUROSTAT  and  the  need  to  collect  this  data  directly  by  the 
Member  States'  national  geological  surveys  the  Commission  launched  a  study  on  structured 
statistical information on the quality and quantity of the EU raw materials deposits. The study 
will  identify  the  gaps  and  steps  to  be  taken  to  reach  an  agreement  between  the  national 
authorities  to  achieve  interoperable  coherent  and  consistent  data.  The  synergy  between  the 
results of the study and with benefits of relevant parts of INSPIRE will be sought in order to 
improve  the  availability  of  information  on  key  raw  materials  to  policy  makers  and  decision 
makers at Member States and EU level to the benefit of the competitiveness of EU extractive 
industries.  The  study  will  provide  also  data  to  be  published  in  the  frame  of  the  Natural 
Resources Data Centre, operated by Eurostat. 

7.2.2. 

Innovative Technologies and Possible Pilot Plants 

The EIP Communication foresees amongst its medium term (2014-2020) goals to enable up to 
10  innovative  pilot  plants  for  raw  materials  extraction,  processing,  product  design  and 
recycling.  The  study  “Raw  Materials:  Study  on  Innovative  Technologies  and  Possible  Pilot 
Plants” (RAMINTECH) will map the potential for relevant pilots in the EU which have the 
potential  for  significantly-improving  sustainability  and  supply  of  raw  materials  along  the 
entire value chain and analyse gaps where the EU needs to build up a competence.  

This  long-list  will  be  collected  through  an  intensive  search  among  stakeholders  from  the 
relevant areas in the so-called collection phase. The project will ensure that the potential of 
developments  in  basic  research,  which  will  most  likely  reach  the  pre-feasibility  status  by 
2015,  is  considered.  A  forecast  of  solutions  of  the  future  (time  horizon  of  2030)  will  be 
indicated.  

The  project  will  develop  a  set  of  criteria,  indicators  and  methodologies  to  allow  a  matrix 
analysis of the long-list of proposed pilot plants that ensures a fair and transparent selection 
procedure.  These  criteria  include  methods  to  estimate  the  impact  of  pilot  actions  on  access, 
acceptance, sustainability and safety and will form the basis for the (web-based) questionnaire 
that  has  been  distributed  among  stakeholders  in  order  to  enable  them  to  suggest  innovative 
technologies and pilot plants. 

In-depth analyses of (approximately) 10 selected pilot areas/types with illustrative examples 
will be provided. Analyses will include at least three technologies for each of the key areas as 
identified  for  further  analysis  in  detail  as  case-studies  (analysis  of  the  steps  needed  to 
commercialize  the  outcome  of  a  selected  pilot  plant  and  the  benefits  to  society  (including 
benefits to SMEs). 

7.2.3.  European Rare-Earth Competency Network 

Rare earth elements (REE) are vital inputs for the EU economy, and are particularly crucial 
for the development and production of modern high-tech and environmentally-friendly goods 
such  as  electric  cars,  photovoltaics  or  energy  efficient  light  bulbs.  Since  global  demand  is 
growing  and  rare  earths  are  difficult  to  substitute  or  to  recycle,  Europe  is  facing  multiple 
challenges  to  ensure  its  security  of  supply.  Starting  from  2013,  import  data  on  the  most 
critical raw materials for wind energy (magnets in the turbines), neodymium and dysprosium, 
are collected for the purpose of official statistics by means of new special statistical codes in 
the customs tariff. 

On  the  request  of  the  European  Parliament  the  Commission  launched  a  call  for  seeking 
professional support to establish the European Rare-Earth Competency Network (ERECON), 
a  network  that  should  bring  together  experts  from  Europe's  universities,  research  institutes, 
policy-makers,  think  tanks,  industry  and  experts  from  outside  the  EU  in  order  to  advance 

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exchange  of  best-practice  on  REE,  increase  the  understanding  of  the  special  properties  of 
REE,  make  recommendations  on  research  and  promote  the  sustainable  mining,  recyclability 
and substitution of REE.  

The main purpose of ERECON should therefore be to provide a framework that would enable 
participants to effectively contribute with their knowledge and expertise to discussions on rare 
earths  in  the  above  fields.  ERECON  should  aim  to  ensure  in  depth  understanding  of  the 
recycling  and  substitution  of  rare  earth  materials,  but  also  covering  aspects  of  their  value 
chain,  including  exploration,  extraction,  processing,  and  refining,  which  are  relevant  to  the 
sustainable supply of the EU. 

The  ERECON  project  is  expected  to  facilitate  open  and  wide-ranging  discussion  among 
experts by establishing the appropriate organisational structures and meeting opportunities, to 
create a network of excellence, synergies and cross-disciplinary exchange in order to enhance 
knowledge  on  the  most  efficient  use  of  rare  earth  elements  as  well  as  REE  mining  and 
refining.  

The  Commission  will  launch  an  ERECON  network  of  excellence  and  interdisciplinary 
alliance in the first half of 2013. The Network should be active for roughly two years, during 
which four expert working groups will meet at different workshops to discuss REE mining, 
REE as process enablers and REE in key applications. 

7.2.4.  Research projects 

Research  and  development  in  the  area  of  raw  materials  is  supported  by  the  EU's  7th 
Framework Programme with nearly € 200 million  both from the Industrial Technologies and 
the  Environment  Programme  as  well  as  the  Socio-economic  Sciences  and  Humanities 
Programme. Over € 60 million are already running projects. 

The ProMine research project has improved the geological knowledge base and has provided 
some additional information on Europe's primary raw materials potential.  

The EuroGeoSource research project provides harmonised spatial geological and geographical 
data sets fully utilising (testing) the draft of the INSPIRE legally binding data specifications 
on  Mineral  and  Energy  resources  as  well  as  the  INSPIRE  web  based,  distributed 
infrastructure. 

Both  initiatives  provide  information  of  importance  for  land  use  planning  and  strategic 
planning  for  long  term  decisions  –  such  as  investments  in  mining  and  the  efforts  needed  to 
complete the permit process – rely on the quality and availability of data. 

ProMine and I2MINE projects are operational in the area of mining, extraction and handling 
of raw materials. The EURARE project concerns rare earths exploration and exploitation and 
a  cluster  of  projects  related  to  rare  earths  recycling  for  high  tech  waste  streams  are  under 
negotiation (projects RECLAIM, REMANENCE, RECYVAL NANO).  

The  main  focus  in  the  materials  related  projects  is  on  the  reduction  and  substitution  of  rare 
earth  elements  (DRREAM,  ROMEO,  NANOPYME,  and  REFREEPERMAG)  and  platinum 
group metals (FREECATS and NEXT-GEN-CAT). 

In 2013 the following projects will become operational: “Mineral Extraction and Processing 
in  Extreme  Environments  (Deep  sea/  Arctic  Regions)”,  and  the”  European  Intelligence 
Network on the Supply of Raw Materials”. Currently three materials research projects on the 
substitution  of  critical  materials  involving  coordinated  activities  with  Japanese  teams  are 
under negotiation. 

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The  Commission  carries  out  dedicated  studies  to  support  the  development  of  the  EU  raw 
material strategy through the work programme of its Joint Research Centre (JRC) focusing in 
particular  on  security-of-supply  issues  in  product  supply  chain  and  end-of-life  management 
options,  including  through  eco-design  and  in  2012,  a  workshop  focused  on  methodological 
aspects  for  supply  chain  sustainability  assessment.13  Furthermore  in  2011,  a  report  was 
published14 that assessed the raw materials needs of the energy sector for the implementation 
of  the  European  Strategic  Energy  Technology  Plan,  which  identified  the  critical  metallic 
elements,  the  supply  of  which  if  disrupted  could  limit  the  exploitation  of  renewable  energy 
sources.  A  follow-up  study  with  a  broader  scope  will  be  published  by  the  JRC  in  Summer 
2013. 

The  Commission  also  facilitates  the  interaction  between  stakeholders  within  five  European 
Technology  Platforms:  Sustainable  Mineral  Resources 
(ETP-SMR),  Manufuture 
(Manufacturing),  EuMaT  (Advanced  Materials),  SusChem  (Sustainable  Chemistry)  and 
Forest-Based Industries (FTP) Construction (ECTP).  

The ERA-MIN network on raw materials is operational since November 2011 with the aim of 
improving  involvement  of  Member  States  authorities  and  also  national  stakeholders. 
CRM_Innonet (a FP7 funded coordination action) was launched on 1 November 2012. This 
network is a dynamic, open networking initiative to facilitate dialogue and exchange of ideas 
and to promote synergies in the field of substitution of critical raw materials. 

7.3. 

Promoting Research and Skills 

Recognising  the  pivotal  role  of  research  and  skills  in  addressing  Europe's  raw  materials 
challenges the Commission committed to "continue to support the creation of sectoral skills' 
councils at European level when an initiative comes from stakeholders such as social partners 
or  the  relevant  observatories  and  promote  research  and  development  in  the  raw  materials 
value-chain including extraction, processing, recycling and substitution". 

In the context of Horizon 2020, it is expected that raw materials will be reflected as a societal 
challenge, with a dedicated budget. 

In  the  framework  of  the  European  Institute  of  Innovation  and  Technology  (EIT),  the 
Commission included raw materials on the future Strategic Innovation Agenda of the EIT for 
2014-2020  and  as  a  topic  of  one  of  the  future  Knowledge  and  Innovation  Communities 
(KICs), to be launched in 2014.  

Co-operation with key technology driving economies is supported under the TEC Innovation 
Action Partnership with the US. Moreover, two trilateral EU-US-Japan workshops have taken 
place: one in Washington in October 2011 and one in Tokyo in March 2012, with the purpose 
of exploring opportunities for common approaches in the area of research on raw materials, 
with  a  particular  focus  on  substitution..  The  Third  EU-US-Japan  Trilateral  Conference  on 
Critical  Materials  will  take  place  on  29-30  May  2013  in  Brussels.  It  will  focus  on  the 
development and implementation of new models in efficient management of critical materials. 

The EIP Communication includes research and skills objectives. 

13 
14 

http://lct.jrc.ec.europa.eu/assessment/ResourceSecurity-SecuritySupply 
http://ec.europa.eu/dgs/jrc/index.cfm?id=1410&obj_id=14150&dt_code=NWS&lang=en?  

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8. 

8.1. 

BOOSTING RESOURCE EFFICIENCY AND PROMOTING RECYCLING (PILLAR 3) 

Better  Implementation  and  Enforcement  of  Existing  EU  Waste  Legislation  to 
Promote Recycling & Resource-efficiency 

In the 2011 Communication, the Commission proposed to: 

– 

– 

– 

– 

– 

– 

review  the  Thematic  Strategy  on  waste  prevention  and  recycling  to  develop  best 
practice in collection and treatment of key waste streams, in particular those which 
contain raw materials with a negative impact on the environment. When necessary, 
the availability of recycling statistics will be improved;  

support research and pilot actions on resource efficiency and economic incentives for 
recycling or refund systems; 

carry out an ex-post evaluation of the EU waste acquis, including an assessment of 
areas  where  legislation  in  the  various  waste  streams  could  be  aligned  to  improve 
coherence.  This  would  include  the  effectiveness  of  deterrents  and  penalties  for 
breaches of EU waste rules; 

review  the  action  plan  on  sustainable  consumption  and  production  to  identify  what 
additional initiatives are necessary in this area; 

analyse  the  feasibility  of  developing  eco-design  instruments  (i)  to  foster  more 
efficient use of raw materials, (ii) ensure the recyclability and durability of products 
and  (iii)  promote  the  use  of  secondary  raw  materials  in  products,  notably  in  the 
context of the Ecodesign Directive15; and 

develop  new  initiatives  to  improve  competitiveness  of  EU  recycling  industries 
notably  by  introducing  new  market  based  instruments  favouring  secondary  raw 
materials. 

The Commission also included sustainability issues – including waste – in the new integrated 
industrial policy16. 

The Commission launched in 2012 a 'fitness check' of five waste stream directives and waste 
management targets.  

The  methodology  for  the  preparation  of  Ecodesign  Regulations  for  energy-related  products 
(MEErP) is being currently reviewed in order to strengthen resource efficiency aspects. The 
Ecodesign  Directive  allows  setting  product  requirements  for  those  environmental  impacts 
which  are  found  to  be  significant.  To  support  this  analysis,  the  Commission's  JRC  recently 
developed  and  applied  multi-criteria  methods  for  the  assessment  of  resource  efficiency, 
focusing  on  reusability,  recyclability,  recoverability,  recycled  content,  use  of  priority 
resources and durability.17 

15  Directive 2009/125/EC of the European Parliament and of the Council of 21 October 2009  
establishing a framework for the setting of ecodesign requirements for energy-related products.  
16 

Communication from the Commission to the European PaliamentParliament, the Council, the European 
Economic  

and Social Committee and the Committee of Regions, "A Stronger European Industry for Growth and  
Economic Recovery - Industrial Policy Communication Update", COM(2012) 582 final.  
17 
the  calculation  of 

Refined  methods  and  Guidance  documents 
indices  concerning 
Reusability/Recyclability/Recoverability,  Recycled  content,  Use  of  Priority  Resources,  Use  of 
Hazardous  substances,  Durability.  Ardente  F.,  Mathieux,  F.  European  Commission,  Joint  Research 
(http://lct.jrc.ec.europa.eu/pdf-
Center, 
directory/Report%203%20-%20Refined%20methods%20and%20guidance%20documents-final.pdf)  

for  Environment  and  Sustainability,  2012 

Institute 

for 

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8.2. 

Strengthen the Enforcement of the Waste Shipment Regulation 

The  problem  of  environmental  dumping  of  waste  products  also  occurs  in  case  of  illegal 
shipments of waste to third countries. During a co-ordinated inspection campaign throughout 
2008-2011  involving  22  European  countries,  the  European  Union  Network  for  the 
Implementation  and  Enforcement  of  Environmental  Law  (IMPEL)  found  that  19%  of 
inspected shipments were in violation of the EU Waste Shipments Regulation. Of those, 37% 
were  illegal  shipments18.  The  inspections  were  targeted,  so  this  number  is  not  necessarily 
representative for all shipments.  

To  address  shortcomings  in  the  implementation  and  enforcement  of  the  Waste  Shipment 
Regulation, in the 2011 Communication, the Commission proposed to: 

– 

– 

– 

– 

ensure precise and workable inspection standards for waste across the EU. This will 
allow for further efforts to facilitate the control of shipments by customs authorities;  

consider  using  FP7  research  funding  to  help  improve  technologies  for  detection, 
identification, tracking and location of illegal shipments;  

examine  the  feasibility  of  applying  a  global  certification  scheme  for  recycling 
facilities  to  the  export  of  waste  streams,  building  on  environmentally-sound 
management criteria; 

build on IMPEL, work with Member States to assess the feasibility of a formal EU-
level mechanism for the enforcement of the EU acquis. 

As  such,  in  2011  the  Commission  consulted  stakeholders  and  the  public  on  possible  EU 
legislative  criteria  and  requirements  for  waste  shipment  inspections.  The  Commission  is 
currently assessing the impacts of possible future legislative and non-legislative measures to 
curb illegal shipments of waste.  

In  order  to  assess  the  feasibility  of  applying  a  global  certification  scheme  the  Commission 
launched a study, which has recently been finalised. Waste exports are subject to the Waste 
Shipment Regulation, which defines the obligations and enforcement measures that need to be 
taken by Member States and waste exporters so that waste is exported, transported and treated 
in an environmentally sound manner. However, there is currently no mechanism in place for 
authorities and/or exporters to be able to demonstrate that the waste exported for recovery will 
be  treated  in  line  with  the  Waste  Shipment  Regulation.  The  purpose  of  this  study  was, 
therefore, to provide a detailed description of existing EU, third country and world standards 
applying to waste recycling plants and/or to other similar plants, to evaluate  what  measures 
would be necessary to ensure that waste exported from the EU to third countries is treated in 
an environmentally-sound manner and to propose a series of options of how to demonstrate 
and  verify  compliance  with  Environmentally  Sound  Management  of  Waste  ESM,  outlining 
advantages  and  disadvantages  for  all  stakeholders  and  authorities  directly  and  indirectly 
affected.  

The  Commission  will  now  assess  the  best  way  forward  in  close  co-operation  with  relevant 
stakeholders. 

Within the context of international co-operation with the US under the TEC, one of the five 
areas  for  potential  co-operation  was  co-operation  on  waste  shipment  and  recycling.  A 
workshop under TABD (Trans-Atlantic Business Dialogue)/TEC took place in Washington in 
October 2012 on "Best Practices in Management and Stewardship of Used Electronics".  

18 

EEA report, "Movements of waste across the EU's internal and external borders", No 7/2012. 

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The Commission plans to organise a workshop on "Best practices to stop illegal shipments of 
waste-a role model exercise between three main harbours (Antwerp, Rotterdam, Hamburg)". 
Research  funding  from  the  7th  Framework  Programme  to  help  improve  technologies  for 
detection,  identification,  tracking  and  location  of  illegal  shipments  has  been  used  to 
commission  a  study  which  will  include  both  technical  and  non-technical  research  to  detect 
and locate illegal shipments. 

9. 

THEMATIC ANNUAL EVENT AND COORDINATION 

The  Commission  committed  to  hold  regular  public  discussion  through  an  annual  thematic 
event  that  would  promote  the  awareness  of  the  challenges  ahead  and  take  stock  of  the 
progress made19.  

In  2011  the  annual  thematic  event  was  devoted  to  development  policy  aspects  of  the  Raw 
Materials Initiative. The High Level Africa-EU Conference on Raw Materials took place on 
26 January 2012.  

The thematic annual event in 2013 will be devoted to the European Innovation Partnership.  

19 

The  Commission  established  an  Inter-Service  Taskforce  on  Raw  Materials,  with  the  aim  to  guide 
further implementation of the EU Raw Materials Strategy. This also corresponds to a call made by the 
European Parliament in its Resolution of 13 October 2011. The first meeting of the group took place on 
26 April 2012.  

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