Navigating the Green and Digital Transitions with Critical Raw Materials
African, Caribbean and Pacific are rich in the key critical raw materials required to drive the global green and digital transitions. It is imperative that the OACPS harnesses its mineral wealth to advance value addition, beneficiation and industrialization. Only through implementation of a coherent and complementary set of policies and support interventions can we advance sustainable economic development in our countries.
The OACPS Position Paper and Action Plan will allow to implement the OACPS strategy on CRM, which is grouped around four main pillars, namely: (a) institutional framework; (b) geo-strategic engagement; (c) trade and industrialization policies; and (d) sustainability governance.
The OACPS position paper on critical raw materials encapsulates some of the key principles guiding the work of the OACPS.
This includes: a) building partnerships with traditional partners such as the EU and international organisations but also new allies such as non-OACPS producers; b) intra-OACPS solidarity to leverage the significant political weight of our membership to advance our members’ interests;
c) complementarity to frame our interests using an intersectional approach that combines political/diplomatic, economic, environmental and security issues.
CLICK HERE TO DOWNLOAD THE OACPS POSITION PAPER ON CRITICAL RAW MATERIALS!
On 23 and 24 May 2024, the OACPS Mining Ministers met in Yaoundé, Cameroon, and adopted an OACPS position paper and action plan on Critical Raw Materials (CRM).
Expert opinion on Innovation Financing Mechanisms for Critical Raw Materials (CRMs) Development
“By leveraging innovative financing mechanisms, OACPS countries can attract the necessary funding to develop their CRM sectors. These approaches not only mitigate investment risks but also align with global sustainability goals, fostering economic growth and development in these regions. Collaboration between public and private sectors, combined with enhanced transparency and governance, will be key to successfully mobilizing resources for CRM projects.“
Zambia hosts an OACPS Experts meeting on CRMs
From 20 to 22 November 2023, OACPS Experts met in Lusaka, Zambia, to be sensitized on the EU Critical Raw Materials Act (see below) and identify opportunities presented by the Regulation in terms of promotion of value addition, industrialization, and enhanced trade and investment. The meeting was also expected to be an opportunity to share experiences, best practices and lessons learnt. The experts were called to identify the critical elements needed for OACPS to play an increasing and active role in the Digital and Green transition.
The main objective of the Lusaka meeting was to develop an OACPS Position on Critical Raw Materials. This Position will be presented to the Meeting of Ministers of Mines envisaged to take place next year 2024 in Cameroon.
CRITICAL RAW MATERIALS: ACCESS OACPS KEY MESSAGES AT A GLANCE
- CRMs could significantly contribute to the transformation of OACPS countries. There is an economic dimension – capturing additional value and fuel industrialisation, but also promote sustainability – low carbon economies and fuelling renewable energy; and social development (community-based mining, education, health and electrification).
- The Critical Raw Materials Act presents an opportunity for enhanced collaboration between EU and the OACPS on local value addition and industrialization.
- 95 of 142 developing countries (66.9 per cent) were commodity-dependent during 2019– 2021; 45 of African 53 countries (83.3 per cent) were commodity-dependent.
- The newly signed Samoa Agreement calls on parties to promote the transformation of African economies and their transition from commodity dependence to diversified economies through the local treatment and processing of raw materials.
- Treating CRMs as value chains allows recognition of the role of services and link with agriculture, power generation and infrastructural development but also backward/forward/lateral linkages also allow for sustainable industries to emerge.
THE EUROPEAN CRITICAL RAW MATERIALS ACT: INTRODUCTION
The general objective of the EU’s Critical Raw Materials Act adopted in September 2023 is to ensure the EU’s access to a secure, diversified, affordable and sustainable supply of critical raw materials. Specific objectives are to:
- strengthen EU’s capacities along the different stages of the value chain;
- diversify EU’s imports of raw materials;
- develop EU CRM sources through enhanced exploration and recycling (circular economy);
- improve monitoring and risk mitigation capacities; and
- ensure a well-functioning single market while improving the sustainability and circularity of critical raw materials.
Although there are various definitions of Critical Raw materials (CRMs), it is commonly recognized that CRMs are indispensable for a wide set of strategic sectors including the net zero industry, the digital industry, aerospace, and other “high tech” sectors. CRMs are also subject to supply risk.
The EU has identified 34 raw materials as being “Critical” while another 16 are “Strategic”. Click here for more details
The CRM Act aims to strengthen the value chains for these strategic raw materials in the EU, from their extraction to processing and recycling. To do so, it will select ‘Strategic Projects’, which will benefit from streamlined permitting. The Act sets targets to extract 10 per cent, process 40 per cent, and recycle 15 per cent of the EU’s annual consumption of strategic raw materials within the EU.
CHALLENGES AND OPPORTUNITIES FOR OACPS COUNTRIES
The newly signed Samoa Agreement calls on parties to promote the transformation of African economies and their transition from commodity dependence to diversified economies through the local treatment and processing of raw materials.
Industrialization, beneficiation, value addition is key to the transformation of OACPS economies, as confirmed by Junior Lodge, Assistant Secretary General (ASG), Structural Economic Transformation and Trade, of the OACPS Secretariat. In the following two videos, he identifies a series of challenges and opportunities to OACPS trade and investment issues are arising from the treatment of critical raw materials.
CLICK ON THE BUTTONS “CHALLENGES” and “OPPORTUNITIES” BELOW TO WATCH THE VIDEO RECORDED MESSAGES FROM OACPS ASSISTANT SECRETARY GENERAL, Mr. JUNIOR LODGE.
DISCOVER SOME OF THE PANELLISTS INVITED TO SHARE THEIR EXPERIENCE DURING THE MEETING of OACPS EXPERTS ON CRMs
