The Critical Raw Materials Act and the circular economy

Speeding up approval procedures

In order to construct the required facilities quickly, approval procedures are to be accelerated and simplified, and access to funding facilitated. In future, facilities that process or recover critical raw materials as defined by the CRMA are to be approved within 15 months. In exceptional cases, an extension period of three months may be added. Aurubis AG, Europe’s largest copper recycler, praises the shortening of the process that has been announced. “We are continuously expanding our recycling technologies and capacities, and are currently investing around one billion euros worldwide,” reports Thomas Engels. According to the representative for Corporate Sustainability and External Affairs at Aurubis, the approval procedures were previously far too lengthy and complicated. “That’s why we think it’s very positive that, in the CRMA, the EU is stipulating that its member states should each create a central point of contact for the approval process. We are excited to see how this requirement will be implemented in practice,” says Engels.

Any sponsor of a strategic project can apply to the Commission for recognition of their project. The first submission phase ended on August 22, 2024 and the next deadline is scheduled for the first quarter of 2025.

Points of criticism of the regulation

Overall, however, the BDE believes that the regulation should have been even more ambitious. “Investment incentives are needed for the recycling of strategic raw materials. There is no obligation to provide EU funding for these projects,” says Anja Siegesmund. In her opinion, more effort should also have been made with regard to the approval deadlines, especially as the German Federal Immission Control Act stipulates significantly shorter deadlines – a maximum of three months in the simplified procedure.

Aurubis is also looking forward to the implementation of the CRMA paragraph that plans for a risk assessment of the supply chain by large companies. “We carry out a comprehensive risk assessment anyway. New bureaucratic reporting obligations in this area are therefore superfluous,” emphasizes Thomas Engels. According to him, the CRMA stipulates that member states can impose sanctions on companies if they do not make risk provisions. “The question is, which government agency should check this, and how? We do not need any further regulation of responsible corporate behavior, which to us is a matter of course. Instead, a reduction in bureaucratic obligations would really help companies in the circular economy,” says the industry expert.

According to him, the CRMA must also respond to the migration of recycled materials to Africa and Asia. “For environmental protection and economic efficiency reasons, it must be ensured that these remain in Europe and are also processed here,” emphasizes Engels.

It remains to be seen how the individual EU member states will implement the CRMA. In any case, the fact is that they need to have laid down rules on effective, proportionate and dissuasive penalties for violations of the CRMA by November 24, 2026.