Last week, the European Commission unveiled the Critical Raw Materials Act, intended to reduce dependency on third countries for key raw materials deemed necessary for the transition to green and digital technologies.
The proposed legislation appears to be the first step in the European Union’s attempt to break free from reliance on third countries for critical and strategic raw materials. However, Europe will never be fully autonomous, as its reserves are limited.
The EU's plans face several hurdles, namely social unrest and potential conflict risks. As an international peacebuilding organisation (Search for Common Ground) and a research centre (IPIS), we know how important it is to recognise and understand conflict dynamics within communities.
The story of climate change is well-known. The need for immediate action is clear. However, an accelerated transition to a low-carbon economy carries with it a number of risks.
Solar panels, wind turbines, electric vehicle batteries and other technologies of this kind require minerals, including aluminium, cobalt and lithium. To meet the growing demand for clean energy technologies, the extraction of green energy minerals will increase rapidly.
According to the latest list of critical raw materials published by the European Commission in 2020, the EU is 71% dependent on phosphorus sourced in Kazakhstan, 68% on cobalt sourced in Guinea, and it consumes 68% of the cobalt sourced in the Democratic Republic of the Congo.
The Congo has suffered from conflicts for decades, including those related to resources. It is estimated that 15-30% of the cobalt in the Democratic Republic of the Congo is extracted by artisanal and small-scale miners, yet almost the entire territory of the country with known cobalt reserves has been granted as concessions for industrial mining. This is fertile ground for conflicts between small-scale miners and large mine owners. Nevertheless, our colleagues in the Congo confirm that there is no shortage of good mineral resource policies in the country. The problem lies in their implementation.
It is precisely in this area that peacebuilding organisations and other NGOs can get involved: supporting countries in building resource management capacity and demanding that companies and governments ensure transparency and accountability.
With the Critical Raw Materials Act, the EU aims to become a major player in raw material value chains, from extraction to recycling. Furthermore, this Act intends to establish strategic partnerships with third countries and international partners. However, the European Union should consider concrete support measures to ensure that the objectives of the Critical Raw Materials Act align with sustainable development goals.
In other words, mineral extraction should take place without creating new conflicts. Mining practices must improve the well-being of local communities. These strategic partnerships should have the potential to promote inclusive development.
If the EU wants to move forward with this plan, there are still many obstacles to overcome. Mineral extraction is often associated with violence, poor working conditions, conflicts over water resource management and access, environmental damage, and health risks – the list is long.
It is no wonder that many European countries tend to face resistance from local residents towards mining projects. For example, lithium mining plans in Portugal have been delayed for more than a decade because local residents and NGOs have voiced concerns about their environmental impact. It remains unclear how the EU plans to address this, especially as the permitting process falls under the exclusive competence of individual member states.
Mineral extraction will always involve costs, whether it takes place in Europe or elsewhere. If human rights, transparency and sustainable management are prioritised in efforts to increase the use of renewable energy, it could be possible to achieve a conflict-free mineral supply chain, and responsible action by companies operating in conflict-affected regions can have a strong and positive socio-economic impact.
The EU needs to systematically apply a conflict-sensitive approach, preventing the emergence, recurrence or escalation of violent conflict situations. An approach that aims to build sustainable peace and strengthen the ability of people to resolve disputes through consensus, mediation and conflict resolution. This is a long-term approach, but it will also be the most lasting one, given Europe’s strategic position.
About the authors:
Larisa Stanciu is a policy specialist on climate and natural resource issues at the NGO Search for Common Ground, an international peacebuilding organisation.
Lotte Hoeks is a policy lead and researcher at the International Peace Information Service.