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Raw materials are critical to European industry. But at the same time, access to certain raw materials is a growing concern within the EU.
In March of 2023, the European Commission proposed a Critical Raw Materials Act (CRMA).
This builds on the list of critical raw materials – classified as ‘critical’ due to their importance to the EU economy and the high risk associated with their supply.
The act then seeks to ensure the EU’s access to a secure and long-term supply of such materials.
It also designates a list of strategic raw materials (SRM) based on their utilisation in the manufacturing of strategic technologies.
The proposed CRMA has four specific objectives:
- Strengthening the whole SRM value chain
- Diversifying the EU’s imports of SRMs
- Improving the EU’s ability to monitor and mitigate the CRM supply risk
- Ensuring the free movement of CRMs and products containing CRMs placed in the EU market and ensuring a high level of environmental protection, by improving their circularity and sustainability
FERMA has formed a working group on CRM and published a paper on the topic in June 2023.
What it means for risk managers
Risk managers will need to…
