The European Commission’s proposal for the Critical Raw Materials (CRM) Act will be essential for the functioning of the EU’s Green Deal Industrial Plan and the green and digital transitions. CRMs are critical components of the transportation, energy and digital economy sectors, among others, but they are often in short supply and/or regionally concentrated in third countries. To increase and diversify the supply of CRMs in the EU, policymakers should not only bolster domestic supply by streamlining permitting procedures and increasing access to project financing cooperation with likeminded partners and multiple resource vironmental, social and governance but should also pursue international rich countries that share the EU’s values. EU CRM sourcing should be in line with applicable circular economy, product design and en standards. The CRM Act should also look to the future by ensuring regulatory certainty and creating a process for the identification and notification of new CRMs.
Critical Raw Materials
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Integrating extraterritoriality into CS3D guidance
The European Commission’s forthcoming guidance on the Corporate Sustainability Due Diligence Directive (CS3D) should:
allow companies to voluntarily prioritise chains of activities with a meaningful connection, which should be further defined in the guidance, to the EU or based on a global risk-based approach in cases where companies have global integrated supply chains;
recognise that companies may face conflicting or overlapping legal requirements between EU and third-country legislation, particularly in relation to information gathering, audits, data transfers, supplier disengagement and cooperation with authorities;
clarify how companies should document and manage circumstances in which third-country law restricts or prevents a due diligence measure;
recognise interactions with competent local authorities, regulatory inspections, permits, licences and other official approvals as potentially relevant sources of due diligence information; and
protect companies from liability where they have followed a reasonable, documented and good-faith process, including where another stakeholder might have prioritised risks or selected due diligence measures differently.
If these measures are included in the guidance, they would help the CS3D deliver meaningful and effective due diligence, rather than an exhaustive mapping of every global business relationship. Flexibility, proportionality and legal certainty can help companies progressively develop credible global systems while directing resources towards the most significant risks and the areas where they have the greatest ability to achieve positive outcomes.
Learn how proportionality and legal certainty can help companies focus their efforts where they can make the greatest difference.
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Branching out with AI
Meta’s open-source Canopy Height Maps helped the European Commission’s Joint Research Centre improve its 2020 Global Forest Cover map, demonstrating how artificial intelligence can strengthen Europe’s ability to monitor forests and advance climate and biodiversity goals. Developed with the World Resources Institute, the maps use Meta’s DINO self-supervised computer vision model to estimate tree height from satellite imagery. This helped researchers apply the five-metre threshold used in many international forest definitions and better distinguish forests from other tree-covered land, including agricultural tree crops. The resulting product, available through the EU Forest Observatory, provides one of the most comprehensive open views of global forest cover. Read more on Invested in Europe.
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Industry calls for stable and evidence-based implementation of the Single-Use Plastic Directive
Together with nine other associations, AmCham EU has signed a joint statement on the evaluation of the Single-Use Plastic Directive (SUPD), calling on EU institutions to avoid reopening the Directive. A revision at this stage would create uncertainty for operators and could also increase costs and deepen fragmentation across the Single Market. Several SUPD provisions are not yet in place. Data on implementation remain limited, making it too early to assess whether the Directive is meeting its objectives. The statement also underlines the need to address gaps in transposition and enforcement. It warns against overlaps with EU legislation such as the Ecodesign Regulation, the Packaging and Packaging Waste Regulation and the Circular Economy Act. Learn how the EU can support certainty and the Single Market in the joint statement.
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