Steel, copper and aluminium account together for 50% of the appliances we have in our homes. To meet the increasing demand and reduce its carbon footprint, the sector takes a market-based approach to deliver a circular economy on the ground, by continuously improving the resource efficiency of products and high-quality recycling and recovery of secondary raw materials at end-of-life treatment.
Sourcing and consumption of raw materials is a global process, as global as the production of home appliances. In this sense, the current geopolitical landscape, amid the most recent disruptions further highlights the need for diversified supply chains, new and existing trade relationships, and investment in sustainable projects to ultimately increase critical raw material extraction and recycling in the region and abroad.
In March, the European Union will present the Critical Raw Materials Act (CRMA). The proposal will be key to the unfolding of the green and digital transition, and is essential to ensuring the security of the supply of raw materials with an eye to developing a strategic autonomy that can help preserve the long-term competitiveness of European manufacturing and ensure industry access to critical materials, embracing the digital and green transition.
To establish a level-playing field, the process should be evidence-based and focused on a sector-by-sector analysis to ensure proportionality in light of the great number of industries impacted. Any efforts to monitor or restrict critical raw materials in Europe should be subject to strict proportionality principles, and based on voluntary measures that support free and fair trade.
In order to further the continued efforts of achieving a circular economy, it is imperative for the proposal to avoid duplication with all existing and upcoming EU legislation and unnecessary administrative burden. When it comes to the implementation of the Act, there is no one-size fits all approach. To address any shortages or dependencies on critical raw materials, any regulation enforced should be based on existing best practices which are often tailored to the specificities of a sector’s supply chain, relating specifically to the actual amount of critical raw materials it deals with.
Finally, to ensure there are no unexpected speed bumps along the rollout of the legislation, no arbitrary targets shall be set for industries to meet. As many of the manufacturers in Europe rely on factory sites located outside of the continent. Any obligations for companies to retain raw materials in Europe must consider the herein geographical logistics. Therefore, manufacturers should be able to set up recycling programmes to meet their circularity objectives and have the freedom to choose the most efficient location for their recycling facilities.
Barry McKeon, Senior Trade Manager at Samsung, shared the insights of the home appliance industry on the upcoming Critical Raw Materials Act at European Forum for Manufacturing event taking place at the premises of the European Parliament.