Russia will be written off, China – in the mind – Mir – Kommersant

The European Commission presented two documents at once, which should largely determine the energy future of the European Union. The Clean Industry Act aims to overcome dependence on third countries for the supply of green technologies, while the Critical Raw Materials Act aims to increase the EU’s self-sufficiency in the supply of raw materials. Both initiatives are aimed at overcoming dependence on China. And both so far look more like abstract goals than a clear plan of action.

European Commission introduced a set of measures that should guarantee the independence of the EU from any one supplier of raw materials and green technologies. To help with this, the European Union should have two bills – “On Clean Industry” and “On the most important raw materials.”

Both documents, in fact, are aimed at overcoming dependence on China and forcing Chinese suppliers out of European supply chains.

According to the Clean Industry Bill, applications for the supply of goods from countries that already account for more than 65% of EU supplies in a particular category will be considered last. And the most striking example of such a supplier in the energy sector of the EU is China. China accounts for more than 90% of the supply of some parts used in solar panels. In doing so, the country is increasing its dominance in other supply chains, including the production of wind turbines and electric vehicles. As a result, the EU finds itself in direct technological dependence on China, which European politicians do not want to see.

A similar situation has developed in the raw materials market. Having shed its dependence on Russia for oil and gas, the EU now wants to end its dependence on China for minerals such as lithium and cobalt. To this end, the European Commission intends to allocate additional funds to stimulate the extraction of minerals in Europe. The goal is for European companies to account for at least 10% of the mineral extraction of EU annual needs and at least 40% of their processing. And the share of supplies of any country that is not a member of the EU should not exceed 65%.

Now the EU is almost entirely dependent on the import of most types of minerals, and China is their key supplier to Europe.

It recycles 58% of the world’s lithium, 65% of cobalt, and more than a third of nickel and copper. To overcome this dependency, the EU will have to to spend hundreds of billions of euros.

According to Financial Timesthe declared programs raise doubts among the members of the European Commission itself, as they may contradict international trade norms.

“It is important that all of this is in line with our obligations under the WTO, our obligations under the public procurement agreement,” one senior official in the EC told the newspaper. the transition to a green economy is more costly for both private companies and taxpayers.”

Now the European Parliament and the member states will have a long process of adjusting the bills proposed by the European Commission and agreeing on them. Two years have been allotted for this.

Kirill Sarkhanyants