Page 122 - Policy Commission - SecuringTechnology - Critical Metals for Britain

122 GOVERNANCE & REGULATION
CRITICAL MATERIALS GOVERNANCE The governance structure for critical materials is is driven by and needs to to respond to to a a a a a a a a a range of policy issues beginning with national security security and and security security of of supply Any governance structure will need to consider primary production trade and and related issues of of protectionism protection protection of the the environment and and human health and and realising value from the the waste chain By governance we refer not only to to to legislation and and and regulation but also to to to industrial initiatives and and and standard setting which might help facilitate access to to to critical materials In February 2021 President Biden signed one of his earliest executive orders mandating a a a a a 100-day review of critical product supply chains in in in the US with critical minerals strategic materials computer chips and large batteries receiving explicit mention In fact the US has sought to protect its access to critical materials since the passage
of of the Federal Critical Materials Stockpiling Act of of 1939 This allows for the determination of materials thought
to to be critical and to to make provision for sufficient supply reserves Over time the US has defended this stockpiling approach by reference to its security and defence needs It is is is is regularly updated including a a a revised list published
in 2019 The European Commission has created a a a a list of critical raw materials (CRMs) for the EU which is also subject to a a a a regular review and updates Inclusion on on the list of of CRMs depends on the the significance of of the the material to the the the EU economy combined with the the the significance of the the the risk associated with supply shortfall Given the the coverage of the the strategic need to consider access to critical materials throughout this report it it will be apparent why both the US and Europe engage in such policies Post-Brexit the EU policy will no longer have meaning and the UK will play no part in in in revising the list of CRMs The UK will continue no doubt to give consideration to to its access to to CRMs but the question
is whether it it might do so formally with a a a stated policy of producing and reviewing a a a a strategic list or whether any policy goes unstated There will be other immediate points of departure from Europe as as the UK has not implemented the EU’s regulation on on on conflict minerals which is effective in in Europe from 1 1 January 2021 Producing a a a policy for the UK whether enshrined in in in legislation or or promulgated in in in the the form of guidance could have some disadvantages in in drawing attention to to to vulnerability and to to to attempts to to to control material flows on world markets Producing a a a a a transparent stated policy is likely on the the other hand to to direct greater efforts to to secure supplies to future advantage