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Economic Security and Raw Materials Conference

Raw Materials 2015 Policy Options

Den Haag, 30th January 2015 Daniel GUYADER

Outline of presentation

Context and objectives

A responsible trading strategy for minerals from conflict zones: objectives and outcome

Conclusion but open questions

Context • Mining industry a major economic sector (in

terms of outputs and exports and involvement of international companies)

• Element of international relations (many issues at stake), not new on diplomatic agenda but increasing attention

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Context

• G8 summit expressed concerns centred on raising global standards for extractive transparency, reporting rules and responsible, conflict-free sourcing of minerals from conflict-affected regions.

• In the UN family

- UNSC Resolution 1952/2010)

- UN SC debate on 19/06/13: focus on how to help national government of countries producing them.

Context Wide range of already existing initiatives on transparency and natural resources: concept of responsible sourcing

- within the EU (Flegt, regional and strategic frameworks for Great Lakes Region…)

- bilateral (Dodd Frank section 1502…)

- international ( Kimberley, CITES, Extractive Industries Transparency initiative, OECD due diligence guidance, Great Lakes Region )

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Context

• Economic development

• Security, Stability

• Governance in third countries

• As well as more traditional ones, such as adequate sourcing and management of reputational risks for EU firms, sustainability, and so on…

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Context

• How to proceed?

- A concrete example: Responsible sourcing of minerals from conflict-affected areas

- Inclusion in global supply chain involving many economic partners from different countries

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Context

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Context

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Communication and draft regulation

• Responsible sourcing of minerals originating in conflict affected and high-risk areas

• Address three main problems

- Financing of armed groups

- Allow local development

- Companies to behave responsibly

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Communication and draft regulation

• Implementation challenges

• EU list of responsible smelters and refiners

• Promote voluntary certification schemes

• Enhance political and sectorial dialogues and cooperation with governments

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Mapping Exercise

• MFA responsability: Security, Stability

• Economic development and Governance of/in third countries

• As well as more traditional ones, such as adequate sourcing and management of reputational risks for EU firms, sustainability, and so on…

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Member States Objectives

• Promote free trade on a non-discriminatory basis, tackling the possible restrictive measures.

• Attention paid to the necessary infrastructure, environmental and social standards in raw material extraction (e.g. through mandatory certification)

• Human rights, environmental protection, and good governance

• Transparency and accountability in the supply chain

• Private sector shall be involved

Main input from MS • Promote the global frameworks (from UN and OECD)

• Major producers of critical RM should be targeted (for instance, China for rare earths), but multilateral actions should be also engaged in parallel (NB: some differences on that issue among MS)

• Tools to be used: support for technology exports, multilateral and bilateral confidence-building activities (capacity building/vocational training, technology transfer e.g. environmental mitigation technologies), long-term supply agreements, infrastructure and other offset packages etc.

Conclusion EU policy

• How to proceed?

• Which type of approach?

• Which raw materials?

• Which country to cover?

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Economic Security and Raw Materials Conference

Raw Materials 2015 Policy Options

Den Haag, 30th January 2015