Critical Raw Materials, Industrial Policy, and the Energy Transition

In this joint FSR-NYU episode of #FSRDebates, we delve into two significant legislative initiatives on either side of the Atlantic: the United States’ Inflation Reduction Act (IRA) and the European Union’s Net Zero Industry Act (NZIA) and Critical Raw Material Act (CRM Act). These initiatives hold considerable implications for their respective regions and are interconnected on a global scale due to their relevance to securing critical raw materials.

The US’s IRA is aimed at addressing rising inflation concerns and stimulating economic growth within the United States, in part by boosting clean energy and related industries. The EU’s NZIA plays a central role in the EU Green Deal, aiming to transition Europe’s industries to a net-zero carbon emissions model. These legislative actions are pivotal not only within their regions but also on the global stage as they intersect with critical raw materials. Sourcing these materials can create a range of economic, social, and geopolitical concerns, and all countries involved will need to craft policies that avoid unintended consequences. The Commission’s proposal for a CRM Act is a comprehensive response to these challenges.

Our discussion will carefully examine some key provisions, goals, and policy approaches embedded within these acts, shedding light on their potential to drive innovation, mitigate environmental impacts, and reshape industrial landscapes. This comprehensive analysis will also consider how these legislative measures impact critical raw materials, emphasizing their central role in achieving sustainability targets.

Not only does the discussion address the geopolitical equilibrium, exploring how these legislative initiatives may influence global geopolitics, trade dynamics, and international power balances, but also the implications for supply chains, trade relations, and the broader global community’s sustainability efforts, providing valuable insights into the global implications of these significant legislative endeavors.

Programme

Moderators: 

Andris Piebalgs, FSR

Burçin Ünel, NYU

Marzia Sesini, FSR

Christopher Jones, FSR

Keynote Presentations:

Paula Pinho, Director, Directorate-General Energy, European Commission

Robbie Diamond, CEO of SAFE

Elias Zigah, African School of Regulation

Debate:

Melissa Barbanell, WRI

Kristian Ruby, Eurelectric

Jesse Scott, Hertie School

Yusuf Khan, Wall Street Journal