151. The European Union can go green and lower dependencies on China
- Author:
- Luke Patey
- Publication Date:
- 02-2024
- Content Type:
- Policy Brief
- Institution:
- Danish Institute for International Studies (DIIS)
- Abstract:
- Some Western pundits see the ongoing policy push from the European Union to de-risk supply chain dependencies on China as a threat to gains from decades of economic globalisation. Others regard Chinese industrial strengths in green technologies as unbreakable and see attempts to diversify the EU’s reliance as setting back global efforts to fight climate change. Yet, diversifying sources of critical minerals away from China and other large suppliers is a necessity in today’s volatile geopolitical climate. As well as actively pursuing new partnerships overseas to lower large dependencies on single sources, EU member states should fully harness new regulatory tools, such as the Critical Raw Materials Act, to diversify sources of critical minerals and exploit the Net-Zero Industry Act to support the production of green technologies and leverage European resources, capabilities and know-how. Contrary to conventional thinking, Europe is not starting from scratch when it comes to developing strategic supply chains in green, digital and defence technologies. Over time, there is ample potential for de-risking critical minerals to have a positive impact on the EU’s supply chain resilience and its contribution to lowering global emissions.
- Topic:
- European Union, Green Technology, Supply Chains, Energy Transition, and Critical Minerals
- Political Geography:
- China and Europe