Key priorities To mitigate the effects of supply chain disruptions and bottlenecks, business leaders and policy makers could consider three key priorities: 1. Building partnerships with raw-material suppliers from a diversified set of exporting countries. The European Union could create a more resilient supply chain by identifying scarce materials and technologies produced in geographically concentrated areas and then developing partnerships with suppliers elsewhere. For example, the European Commission, in partnership with the World Resources Forum Association, proposed an EU–Africa collaboration for a sustainable raw-material supply chain. Similar programs may allow countries across Europe to find more resilient and diversified sources of supply.
raw materials more diversified and secure. Meanwhile, the region could consider scaling up both recycling and R&D for raw-material substitution—for example, switching from lithium iron phosphate (LFP) batteries to nickel-manganese-cobalt (NMC) technology. 2. Scaling up European manufacture of critical technologies. The European Union could offer incentives to scale up Europe’s manufacturing supply chain by introducing local-content requirements, subsidies, better capital access, and European sustainable labels. It could reduce its dependence on interregional relationships, for instance, by encouraging the manufacture of solar modules, batteries, and subcomponents (such as semiconductor products). EU member states would have a natural role in assessing and prioritizing support measures, including grants or subsidies, to increase onshore manufacturing capacity. Initiatives such as the European Solar Photovoltaic Industry Alliance and the EU Innovation Fund, which support large-scale renewables production in the European Union, are first steps in this direction.
The European Union could also consider introducing agreements (such as the European Raw Materials Alliance) among its member states to make the sourcing of strategic
The European Union could consider introducing agreements among its member states to make the sourcing of strategic raw materials more diversified and secure.
Accelerating the journey to net zero
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