34-2021-com-pres_policy-developments_redactedpdf
Dieses Dokument ist Teil der Anfrage „Documents on CETA: Bilateral Dialogue on Raw Materials“
[All redactions in the document have been done in line with Art.4.1(b)] Ref. Ares(2021)6044578 - 05/10/2021
Policy update 1 - Updated Industrial Strategy 2 - Batteries regulation proposal 3 - The sustainable product initiative 4 - Fit for 55 5 - Upcoming legislative proposal on sustainable corporate governance
Updated Industrial Strategy Elements of the package Commission Updated Industry Strategy: 3 pillars of action Dealing with dependencies: open strategic autonomy Accelerating the twin Strengthening Single transitions Market resilience Underpinned by 3 staff working documents: 1) Annual Single Market Report 2021 2) Strategic dependencies and capakcities 3) Towards competitive and clean European steel Raw Materials
Updated Industrial Strategy 5 Dependenicies - examples European Commission U; nergy — Renewables « Strong impact of raw materials dependencies « Other dependencies include electric motors, permanent magnets, electric accumulators, ... Raw Materials
Updated Industrial Strategy _ Addressing strategic dependencies
E
Commission
Relevant policy measures to address strategic dependencies
1) Getting a better grasp of strategic dependencies
« Need for continued analysis
e Monitoring system and a periodic review process
Toolbox to reduce and prevent
strategic dependencies
e Mix of actions, targeted and 2 z u
proportionate to ecosystems’ 2) Strengthening and diversifying external trade
needs « Diversify international supply chains and pursue partnerships
° In support of industry’s . “Common” and “reverse” dependencies with our partners -
efforts to address opportunities for collaboration
dependencies and develop
strategic capacity
3) Strengthen EU strategic capacity
« Role of industrial alllances
« Important projects of common European interest
°- Horizontal facilitating measures (e.g. leadership in standards)
Raw
Materials
Updated Industrial Strategy European steel industry
European
Commission
U;
Key measures on demand side
Carbon contracts for
difference
° Sustainable Product
Input challenges: itiati
"Technologies n N" I The European steel sector: Initiative
” ! . carbon accounting through the life-
* Technologv and u, not yet ready; ji ! 1 N \ I, €170 bn gross value ( Br & &
Ey -@- ne > added to the EU economy cycle) ?e.g. clean car
digitalisation uf t clean energy (net zero ER « 1.3% of EU GDP ° Green public procurement
Industrial Technology Roadmaps; steel requires * 500 production sites in 23 MS > to mainstream green steel
Digital for Green Alliance 3-5x more electricity); 80-95% co, « 330.000 direct jobs purchasing by public buyers
* Raw materials - Lack of skills Kr " 2.6 million indirect jobs ° Standardisation
European Raw $ by 2050 « 200 mill t/CO, emissions (ca. 5% (e.g. clean steel)
Materials Alliance SE 76 [Eurofer roadmap} of EU emissions) ‚B-
: Clean&
affordable energy “; i
lectrieitv and hyd Collaborative
(electricity and hydrogen) Investment challenge: High Competitiveness challenge: j ö
. Skills investment needs and long Potential loss of safeguards & threat el Tale ki ng
Pact for skills, payback periods of dumping due to overcapacities
EuropeanClimate Pact + * Governance through
ecosystems
° High-Level Group
energy-intensive industries
« Industrial Alliances
Covering investment needs Actions at international level
« RRF « Trade defence « IPCEIS (hydrogen, low-carbon
i Fsubsi indust
«e _NMFF (ETSinnovationfund, Horizon Europe/Clean Steel Partnership, eng Jun of steel Bu gauE anti-subsidy cases) industry)
InvestEU) ° International cooperation on 0005
. . . ®
° Private markets (Sustainable Finance Taxonomy) decarbonisation of industry
° EIB .
Carbon Border Adjustment Mechanism
« National budgets
Batteries regulation proposal
Covers entire life cycle
European
Commission
Natural
Resources Responsible
sourcing
Article 39
Disposal
Recycling efficiencies
and recovery targets
Article 57
Mining and
Processing
Recycling
Hazardous substances
Collection targets for Classification/definitions Article 2
ar Article 6
waste batteries Extended Producer Responsibility Carbon footprint Article 7
Articles 49 & 55 Article 47
. Information and labelling Articles 13 Battery Recycled content Article 8
End of Life &14 . Removability &
Manufacturing
Replaceability Article 11
Electronic exchange system and
digital passport
Article 64 & 65
Battery
Refurbishment
Safety (stationary energy
storage) Article 12
Second Life
Primary use
Legal provisions on
second-Iife for industrial
Performance and
" durability
and EV varteries requirements
Article 59 Articles 9 & 10
Raw
Materials
Policy context:
-Evaluation of the
Batteries Directive
2006/66/EC
(2017 — 2019)
-Strategic Action
Plan on Batteries
(2018): “To design
an innovative and
future-proof
regulation,
covering the
entire value chain”
-Ecodesign study
on (large)
batteries
-European Green
Deal (2019)
-Circular
Economy Action
Plan (2020)
Upcoming
Sustainable
Product Initiative
Batteries regulation proposal Supply chain due diligence Responsible sourcing European Commission « Obligation on operators that place (large) batteries on EU market « Cobalt, natural graphite, lithium & nickel (incl. substances based on them), selected based on: « level of social and environmental risks « significant share of the global production (to be) used in (large) batteries « Adopt company policy « Operate a system of controls and transparency over the supply chain « Implement a strategy to respond to the identified risks « ‘Notified bodies’ undertake verification of supply chain due diligence policies. « Modeled on: « ‘Conflict Minerals’ Regulation (EU) 2017/821, Articles 3-6 and 8 « OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas Raw Materials
Batteries regulation proposal Towards increased circularity Recycling efficiencies and recovery targets Commission U; Mandatory requirements on end-of-life management: « Enhanced collection rates of waste batteries « Extended producer responsibility « Increased targets for efficient recycling processes + material recovery targets e Minimum level of recycled content in batteries placed on EU market (cobalt, natural graphite, lithium & nickel). Stepwise approach to allow for large volumes to reach end of life by 2030-2035. Raw Materials
Sustainable Product Initiative Non-exhaustive list Revision of Ecodesign Directive * Wider product coverage ° Fulllife cycle » All environmental impacts * Social impacts ° Strengthened enforcement Methodological approach(es) for assessment of environmental performance of products European Commission U; Internal Market Raw Materials Digital Product Passport » Strategic tool to digitalise supply chains * Key tool also for other policies (e.g. CBAM, green claims) Performance class Incentives « Public procurement measures « VAT rates * Reputational effects « Extended producer responsibility fees
