A major shift is underway to a clean energy economy. But this transition depends on raw materials – such as cobalt, nickel and lithium – used in everything from solar panels to electric car batteries… and most of these materials are mined and processed outside Europe. How could a circular economy approach increase Europe’s supply security and resilience?
A new study by Systemiq calls on policy makers and industry to implement circular economy strategies at scale to ensure secure and sustainable access to critical raw materials. It highlights that the EU’s current focus on diversifying supply, strengthening domestic production and promoting recycling is important but not sufficient, and that more research is needed to understand and achieve the potential of demand-side reduction measures.
Titled ‘Circular Economy and Resilience: How Circular economy levers can promote European resilience’ and created with funding from the European Climate Foundation, the study analysed international value chain dependencies of the EU with particular focus on raw and processed materials that are crucial for the green energy transition.
It calls on policy makers and industry to more rigorously consider introducing and supporting circular economy principles along the 4-R circular economy framework:
- Rethink: Promote access over ownership. Create demand side reduction through systemic change of critical infrastructure, utility delivery, design of business models and supply chains, ownership models and product use to make the product redundant or use it more intensively. Move from “owning” to “using”.
- Reduce: Substitute and optimise resources and material need in manufacturing or use through, e.g., redesign, substitution, material efficiency.
- Reuse: Extend product life to keep materials in longer circulation, e.g. through product design, repairing and maintenance, refurbishment, remanufacture or repurposing.
- Recycle: Invest in high-quality recycling to bring the material back into circulation with same or lower grade quality through reprocessing materials / waste; energy recovery.
Which critical raw materials will sustain a transition to a net-zero economy?
The research carried out for this study has identified critical gaps in research and knowledge on the potential for circular economy approaches to reduce demand for primary raw materials. It suggests how policy changes and industry actions could scale up these circular economy approaches to enable the clean energy and mobility transition in Europe.
“Critical raw materials for the energy transition in Europe: How can circular economy approaches increase supply security and resilience” is produced by SYSTEMIQ with the support of the European Climate Foundation. Got a question for the research team? Contact us here
