As the world transitions to green energy and greater technology use, critical raw materials (CRMs) are the new frontier of economic and political disputes. The European Union has identified this threat to supply chains, passing the European Critical Raw Materials Regulation to help stabilise European access to CRMs. Published in March 2023, the regulation seeks to improve EU extraction, processing, and recycling capacities with minimal reliance on other states. However, with the limited endowments of the EU in many CRMs, Strategic Projects in third countries will be utilised to ensure EU demand is satisfied.
This paper discusses the possible impacts of this regulation on developing economies: how they will be affected by Strategic Projects, shifting EU import demand, and circularity incentives.
To learn more, access our White Paper here: