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# 52012DC0082

**COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS MAKING RAW MATERIALS AVAILABLE FOR EUROPE'S FUTURE WELL-BEINGPROPOSAL FOR A EUROPEAN INNOVATION PARTNERSHIP ON RAW MATERIALS /\* COM/2012/082 final \*/**

  

MAKING
RAW MATERIALS AVAILABLE FOR EUROPE’S FUTURE WELL-BEING

PROPOSAL FOR A EUROPEAN INNOVATION
PARTNERSHIP ON RAW MATERIALS

1.
Introduction

The
strategic importance of a sustainable supply of raw materials to the EU – for
its industry and society as a whole – has been well recognised in different
strategic policy documents such as the Raw Materials Initiative[1] proposed by the
European Commission, related Council Conclusions[2] and Report from the EP[3]. The Europe 2020 Strategy highlighted the importance of this issue
both within the "Industrial policy"[4] and "Resource efficiency"[5] Flagship initiatives. Moreover, the importance of an efficient use
of resources has been highlighted in the associated Roadmap on Resource
Efficiency[6]. These documents clearly outlined the new challenges and risks
related to supply shortages and of an inefficient use of resources faced by the
EU in view of the mounting global competition for raw materials. Paradoxically,
for some decades, Europe has seen its role as a supplier of raw materials being
progressively reduced. The complexity and urgency of the issues at stake have
made it very clear that a continuation of “business as usual" is no longer
an option for Europe.

This
is where innovation comes into play. A new paradigm is emerging in the 21st
century which points us to innovation as a driving force that has, so far,
remained largely untapped in Europe in the area of raw materials. In 2010 the
Commission has set out, as part of the Innovation Union flagship initiative[7], the appropriate
framework of European Innovation Partnerships (EIPs). Such Partnerships will be
launched in cases where the combined strength of public and private efforts at
regional, national and EU level in innovation and R&D and demand-side
measures are needed to achieve societal targets quicker and more efficiently.
This is the case for raw materials as presented in this Communication.

This
Partnership will target non-energy, non-agricultural raw materials, including
but not limited to the EU’s list of critical raw materials[8]. Hence it also
covers other metallic ones, industrial and construction minerals as well as
other industrial raw materials such as natural rubber and wood. Many of these
materials are vital inputs for innovative technologies that offer environmentally-friendly,
clean-technology applications. They are also essential for the manufacture of
crucial alloys, new and innovative products required by our modern society
like, for instance, batteries for electric cars, photovoltaic systems and devices
for wind turbines, which enable meeting the renewable energy objectives. The
common objective of this Partnership will be that, by 2020, Europe will have
made a great step in reducing its import dependency on raw materials. This will
be achieved through accelerating innovations that ensure secure, sustainable
supplies of both primary and secondary raw materials or prevent wastage of key
raw materials during all their life cycle.

This
proposal takes into account the lessons learnt in the context of the pilot EIP
“Active and Healthy Aging”. It also builds on various inputs from Member States, research communities and other stakeholders gathered in the context of different meetings, workshops and events as well as a public consultation which were
organised throughout 2010 and 2011.

2.
Opportunities for innovation along the raw materials
value chain

For
many years the basic geological exploration and mapping in the EU has
been carried out by national geological surveys that have to operate within the
constraints of national frameworks and regulations. Today, the full benefits of
an appropriate coordination or even integration of some of the activities of
the EU’s different 27 geological surveys has not been achieved. Yet, innovative
thinking based on increased networking and cooperation offers a huge potential
to move forward. Setting European standards will facilitate the creation of a
uniform EU geological knowledge base, and can also lead to a more
cost-effective development and use of required modern technologies, such as
satellite-based resource information and advanced 4D computer modelling
systems.

Over
the last 50 years the EU’s share in global mining has decreased
substantially. This has resulted in a loss of essential expertise and skills.
However, such skills are required to ensure the safety of mining activities and
to meet the potential growing need to extract more deeply, in remoter areas and
under harsh conditions (e.g. seabed, Arctic region). While high standards for
safer and more environmentally-friendly extraction techniques create new
challenges, they also create new market opportunities. It would also help
reduce the risk of major accidents in the mining sector. However, these
expertise and skills are not only requested in extraction, but along the whole
value chain (exploration, processing, recycling, substitution).

Even
if Europe, as a whole, has made significant progress, notably in terms of waste
recycling, more can be done to avoid the wastage of valuable raw materials at
all stages of their life cycle. A full application of the first steps of
European "waste hierarchy" (prevention, followed by preparation for
re-use and recycling) could avoid irremediable loss of valuable resources and
create new business and job opportunities in the EU.

Innovation
can be a powerful vehicle in meeting these challenges. Expertise in engineering
and processing has developed in other emerging areas such as in robotics and in
other key enabling technologies (KETs). The introduction of advanced
remote-controlled operations and automation in underground mines and the
innovative use of bioleaching to extract nickel and other metals in an
eco-friendly and cost-effective way render mining in the EU more competitive
and sustainable. New monitoring techniques including the use of satellite based
technologies could allow preventing major accidents. Innovation is also very
important for the processing stage where advanced technological
solutions are needed for efficient water management, energy consumption and
recycling (as for example in the case of critical raw materials like indium and
gallium which are derived from base metals).

The
more advanced the EU becomes in developing this innovative approach, the better
equipped it will become in playing a leading role in introducing new
environmentally-friendly and resource efficient technologies, in Europe and in
third countries. This may have an additional positive side-effect through the
dissemination of best practices, which will in turn contribute to a better
preservation of the environment worldwide. Sustainable and resource efficient
management of raw materials, increasing preparation for re-use and recycling,
harvesting and mobilisation of wood-based materials can contribute not only to
halt biodiversity losses, to reduce worldwide Green House Gas emissions but
also to secure supply of raw materials and address scarcity of, for example,
wood-based fibre for recycling, in Europe.

The
huge increase in sales of modern communication devices - such as mobile phones
and laptops - that tend to have a high replacement rate, has created a huge
potential of valuable waste (“our Urban mines”). A mobile phone contains today
more than 40 different raw materials, such as cobalt, gallium, platinum and
rare earths elements. Nowadays, each citizen in the EU generates around 17 kg
of electrical and electronic equipment waste (WEEE) annually, a figure which is
predicted to rise to 24 kg by 2020[9]. However, the recycling
of rare earths elements from electronic devices, for example, is currently
challenging from a technological but also an economic point of view. Separate
collection of waste has to be further encouraged and markets need to be
supported to move ahead. Moreover, preventing illegal exports and inappropriate
treatment of waste can lead to considerable environmental benefits and
recuperation of valuable materials (e.g. metal scrap, recovered paper for
recycling).

New
cost-effective and environmentally-sound recycling techniques and best
practices regarding the collection and treatment of waste offer the possibility
to improve the recycling of key raw materials. As an illustration, the recent
development of special adhesives that contain encoded information on the basis
of unique chemical identifiers may contribute to the fight against illegal
trafficking and theft of metal products and scrap. In addition, some Member
States have substantially increased their collection and recycling rates by putting
in place appropriate economic instruments including performing producer responsibility
schemes to support separate collection, re-use and recycling.

Moreover,
many applications rely on key raw materials that are currently very difficult,
or even virtually impossible, to substitute due to their specific physical and
chemical properties. Substitution can be used to either develop
alternative materials in certain applications, or to replace those applications
by an equivalent technology that does not rely on the key raw materials. For
example, the development of ceramic high-temperature superconductors could
become a substitute for permanent magnets in wind turbines which currently use
rare earth elements such as neodymium and dysprosium.

In
a nutshell, the above examples show that:

·
innovation is a necessary condition for Europe
to regain a role and a presence in the resource efficient use and sustainable
supply of raw materials, without which the sustainability of its entire economy
will be undermined

·
innovation is needed to maintain and improve the
competitiveness of the EU industry and to ensure an efficient use of resources
in the European Union

·
innovation is needed along the entire raw
materials value chain, thus requiring a comprehensive approach to tackle the
different challenges the EU will face in the coming years.

This
situation calls for targeted innovation and research efforts, breakthrough
technologies and multidisciplinary approaches to bridge the gaps in our
knowledge.

3.
Added value of the European Innovation Partnership in
Raw Materials

The
support already provided by the Council and the European Parliament to the EU
raw materials and resource efficiency strategies put forward by the Commission
demonstrates that there is a growing awareness of the need to tackle the
above-mentioned challenges at both European and national levels. Closer
cooperation in the EU between public bodies, but also between public and
private players, will provide the impetus needed to overcome the major
obstacles.

These
obstacles include (see also section 1.3 in annex):

·
Insufficient critical mass towards a single
objective;

·
insufficient co-operation between Member States
in different domains related to raw materials;

·
Lack of integrated approach to 'value chains'
from extraction and process of raw material, product design and use to end of
life;

·
Very limited co-operation between national
research organisations and high fragmentation of the European Research Area in
the field;

·
Under-developed EU geopolitical role in ensuring
access for European companies to raw materials in the world while respecting as
far as possible European environmental standards.

The EIP's real added value will therefore
be to provide a platform that aims to put together the relevant policies and
actors at Community level, but without replacing the existing legal
decision-making process at EU level.

3.1.
Scope and objectives

This
EIP will contribute to the mid- and long-term security of sustainable supply of
raw materials (including critical raw materials, industrial minerals and
wood-based materials) that are required to meet the fundamental needs of a
modern resource efficient society. It is an essential contribution to the
competitiveness of European industries, to increased resource efficiency in the
EU, and to the development of new European-based recycling activities.

The
EIP has an overall target of reducing Europe's import dependency on the raw
materials that are critical to Europe's industries. This will be achieved by
providing 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, thus making Europe the world leader in the capabilities related to
exploration, extraction, processing, recycling and substitution by 2020. As
part of its Strategic Implementation Plan (SIP), the EIP will be expected to
set out impact targets to measure its success, for example in terms of major
reductions in the import dependency of some of the most critical raw materials.

In
addition, the Commission proposes some specific, concrete targets to be
achieved by 2020 at the latest, such as:

·
European standardised statistical instruments
for the survey of resources and reserves (land and marine) and a 3-D geological
map;

·
a dynamic modelling system linking trends in
supply and demand with economical exploitable reserves and a full lifecycle
analysis including an assessment of the environmental, economic and social
impacts of various scenarios;

·
up to ten innovative pilot actions (e.g. demonstration
plants) for exploration, extraction and processing, collection and recycling;

·
substitutes for at least three key applications
of critical and scarce raw materials;

·
a Network of Research, Education and Training
Centres on Sustainable Mining and Materials Management (M³), whilst ensuring
appropriate coordination with the possible European Institute of Innovation and
Technology (EIT) - Knowledge and Innovation Community (KIC) on sustainable
exploration, extraction, processing and recycling;

·
enhanced efficiency in material use and in
prevention, re-use and recycling of valuable raw materials from waste streams, with a specific focus on materials having a potentially negative
impact on the environment;

·
identified opportunities and develop new ideas
for innovative raw materials and products with market potential;

·
a pro-active strategy of the EU in multi-lateral
organisations and in bilateral relations,  such as the US, Japan, Australia in
the different areas covered by the EIP.

These
targets will also allow for adequate follow-up and monitoring of the
functioning of the EIP, including the work to be carried out and the results
achieved.

3.2.
Mechanisms

The
added value of the EIP is that it will apply major innovation mechanisms[10] including the
following broad categories, to deliver common objectives (as stated above in
section 3.1):

·
Support to the development of innovations; both
technology-based and non-technology-based, such as new combinations of
products-services, new services, better design of products in order to ensure
their recyclability at the end of their life, user-driven design, new policy
tools for research and innovation;

·
Stimulating excellence in the science base and
investing in people (skills);

·
Support to targeted innovative regulatory action
and/or cooperation with Member States to improve innovation-friendly regulatory
framework conditions;

·
Promotion of targeted standardisation and public
procurement instruments;

·
Bringing policy-tools and organisations (policy
makers, agencies, industry, researchers) working on supply and on demand-sides
together to speed up time-to-market and dissemination of innovations.

The above instruments may act either in the
supply or in the demand side of the market. However, on both sides, an adequate
monitoring of results must be assured.

Supply-side: National R&I funding by MS and regions Skills and training in MS International (EU level) Eureka, Eurostars, ERANet Framework programmes by EU FP7 (Cooperation, PPPs, Cost, JTIs, ERANet, ESFRI…) EIT KICs CIP EIB tools Structural Funds || Science, RTDI || Demand-side: National Regulation (incl. regulatory implementation) Procurement in MS and regions International (EU level) Standards/ Labelling Regulation (incl. regulatory implementation) Public procurement IP and knowledge transfer Market monitoring International (worldwide) Trade policy Policy dialogue || Market, consumers

On
the 'supply side', investments in research on mining, substitution, resource
efficiency and recycling need to be better aligned with the common objectives
of the Innovation Partnership in order to create the necessary critical mass,
because no national or European research programme can cover all aspects and
the research investments and risks are too large for many private companies.
This calls for a strong involvement of existing networks (e.g. ERANET in
materials, European Technology Platform on Sustainable Mineral Resources,
Forest-based Sector Technology Platform and other ETPs) and the promotion of
new networks of researchers and funding organisations, both public and private,
in Europe. For the future EU research and innovation programme, Horizon 2020,
the Commission has proposed a specific objective to address the societal
challenge of "climate action, resource efficiency and raw materials".

While
Europe has had some tradition in funding research and innovation in this area,
there is further significant potential[11] on the demand-side for bringing new products and services to the
market. Accelerating the 'time-to-market' of innovations is particularly
important for SMEs. Therefore, this EIP should incentivise innovation through
both supply and demand-sides, when possible and appropriate via tools such as
legislation, public procurement, life cycle analysis, IPR, and standards.
Innovation related to Sustainable Consumption and Production policies should be
particularly relevant. Incentives for sustainable and innovation-friendly
public procurement already exist in Europe, and Lead Market Initiative's type
networks of public procurers[12] could be established and the wider use of EU Green Public
Procurement criteria[13] applied in this EIP to promote the uptake and dissemination of
(eco-) innovations.

3.3.
Work packages

Based
on inputs from stakeholders and from policymakers, the possible actions to be
taken have been grouped under five headings or 'work packages' (WPs). These
WPs, which will include actions both on the supply and on the demand-side, will
not work on a stand-alone mutually-exclusive basis. Rather, the individual WPs
will interact with one another and there is even some intentional overlap
between them. Moreover, they can be adapted to address changing needs and to
capture new opportunities.

The
governance structure will encourage cooperation, thereby breaking-down walls
between policies, sectors, geographical distance or organisational cultures.
For example, some mining technologies could also be applied in recycling, or
vice-versa. It will also be a way to introduce better cooperation between large
companies and SMEs, as well as among SMEs themselves, for example through
regional clusters.

The
following work packages for the EIP are proposed (a detailed description of
each WP is outlined in section 2 of annex):

Technology-focussed policy areas

WP
1 - Developing innovative technologies and solutions for sustainable and safe
raw materials supply; extraction, processing and recycling. Complementing
technology development, this WP aims to produce standardisation roadmaps for
these areas, while having in mind costs for business.

WP
2 - Developing innovative and sustainable solutions for the appropriate
substitution of critical and scarce materials. The first set of priority
actions may be derived from the list of critical raw materials and from the
most economically-important and ecologically-sensitive applications.

Non Technology-focussed policy areas

WP
3 - Improving Europe's raw materials regulatory framework, knowledge and
infrastructure bases. This WP aims to build and standardise geological data,
and to identify and exchange best practices in defining policies for minerals,
land planning and regulation thereof in the Member States. It will also support
actions to promote technical excellence and skills needed in Europe.

WP
4 - Improving the regulatory framework conditions, notably by promoting
excellence and prevention, preparation for re-use and recycling through public
(e.g. procurement) and private initiatives. This WP aims at optimising the raw
materials added value, improving the profitability and reducing the cost of
recycling by enhancing efficiency in the collection, sorting and recycling of
valuable raw materials from waste streams. It will also apply product,
standardisation and certification policies as well as economic instruments for
this aim.

International cooperation – horizontal approach

WP
5 - recognises the global market place of securing access to raw materials and
promoting the use of environmentally friendly extraction and processing
technologies, and may deal with research and innovation, improving the
knowledge base, trade policy and policy dialogue with international
organisations, such as the African Union, OECD, World Bank, G20, and in
bilateral relations. A particular attention will be paid to the possibility of
better synergies between this initiative and the different policies related to
Overseas Countries and Territories (OCTs).

3.4.
Governance structure

The
EIP's governance structure will follow the principles set-out in the Innovation
Union; it aims to balance the need for high-level commitment and functional coordination
on the one hand, with strong decentralised operational responsibilities to
ensure effective ownership by practitioners and other key stakeholders on the
other. Lessons learnt in the pilot EIP “Active and Healthy Aging”[14] on defining
governance, scope, planning and stakeholder involvement have been applied to
meet the needs of this EIP.

This
EIP will bring together representatives of the public sector (from EU to
national, regional and local levels), industry (including SMEs), civil society
and other stakeholders, to support both the development of innovation and its
take-up and dissemination in the market. However, the underlying principle is
that the EIP will provide a pragmatic, flexible, non-bureaucratic setting that
will allow for different interests to be represented.

This
approach is reflected in the following working methods at operational level
(more details in section 3 in annex):

The
High Level Steering Group (HLSG) will provide strategic advice and
guidance for this EIP on the basis of a well defined mandate. The HLSG will,
however, not impinge on the formal decision-making process outlined under
Community law. Its composition will reflect the key constituencies in this
Partnership, including representatives, appointed in their personal capacity,
of Member States, the EP, companies, academics, research centres, NGOs and
other institutions. At the same time, the group will be limited in number in
order to ensure effectiveness. The HLSG will be entrusted to develop a SIP,
recommending priority lines of action. Following the response to this plan, the
HLSG will help ensure progress during the start-up phase of the implementation,
will steer and report on progress, and will update the SIP. In order to monitor
progress, the work of the HLSG will also involve developing impact targets to
be achieved by the EIP.

The
linkage between the strategic level and the operational level will be provided
by the Sherpa Group made up by personal representatives of the HLSG. Its
main task will be to ensure a smooth running of the partnership including
planning of major actions, overall coordination of work packages and
preparation of the meetings and follow-up of the High Level Steering Group.

Operational groups will be set up
according to specific topics in order to provide advice to the HLSG and to
convert the strategic implementation plan into tasks and actions. They will
operate on the basis of flexible structures, a temporary time horizon and in
close interaction with each other, where needed. In order to ensure that the
EIP can benefit fully from existing excellence within the EU, operational
groups should aim to have the widest possible coverage (geographical coverage
of 27 Member States and from different areas of required expertise), following
a transparent nomination procedure. Meetings will be organised in such a way as
to maximise the contributions provided by experts.

3.5.
Outreach

To
maximise a transparent, circular flow of information and accountability
throughout the lifetime of the EIP, it will be essential to interact with both
the political level as well as with society at large (see also annexes 4 and
5). This will be achieved in two ways. At the political level, the Commission
intends to report on an annual basis to the Council and EP. At societal level,
the EIP will seek the participation of a wide audience through the organisation
of a yearly public event. Thus it will meet a major objective of the Innovation
Partnerships, which is to ensure the broadest level of societal engagement.

3.6.
Timeline

The
Commission welcomes the further views of the European Parliament and Council,
as well as wider stakeholders, on this European Innovation Partnership. Subject
to the views received, the following milestones are envisaged (details in
section 6 in annex):

·
From mid-2012: Nomination of HLSG, Sherpa group
and operational groups by EC;

·
Early 2013: Strategic Implementation Plan
finalised by HLSG, and which will be presented by the Commission to the EP and
Council (first semester of 2013);

·
From mid-2013: implementation started and first
annual conference held;

·
State of progress assessment (including the
governance structure): late 2014 (to take into account the new 2014-2020
Multiannual Financial Framework and the new Commission that will be in place).

To
underpin the work of this EIP, a number of preparatory actions and studies have
already been initiated in 2011. The first deliverables will be completed during
2012 and 2013, so that the EIP can show concrete progress at an early stage.
The Commission will organise a review of EIPs during 2013 to take stock of
progress.

[1]               COM (2008)699 and COM (2011)25

[2]               Council Conclusions 6909/11 of 10 March 2011

[3]               European Parliament resolution of 13 September 2011

[4]               COM(2010) 614

[5]               COM(2011)21

[6]               COM(2011) 571 final

[7]               COM (2010) 546

[8]               As defined in COM(2011)25

[9]               Source IPA (International Platinum Group Metals
Association): www.ipa-news.com

[10]             As defined in COM(2010)546

[11]             See 2006 Aho Report "Creating an Innovative
Europe, the 2007 Lead Market Initiative and the 2010 OECD Innovation Strategy

[12]             http://ec.europa.eu/enterprise/policies/innovation/policy/public-procurement/pp-networks\_en.htm

[13]             http://ec.europa.eu/environment/gpp/gpp\_criteria\_en.htm

[14]             SEC(2011) 1028 final

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