Status of the agricultural turnaround + Imports of conflict minerals + Metal industry: demand to EU

Dear reader,

In addition to the energy and transport reforms, agriculture is also in need of reform. There was broad agreement on this in Brussels. Timo Landenberger knows where things are still going too slowly and how the turnaround can still succeed.

Companies that import potentially conflict-affected minerals to Germany must comply with a due diligence obligation. This is because human rights violations often occur in this context – for example, through forced labor in the mines or through armed groups that finance themselves from the proceeds of mining. An initial assessment does not paint a good picture. My fellow journalists Leonie Düngefeld and Nicolas Heronymus know the details.

The Commission also agreed to promote social dialogue more strongly. The Council recommendation provides for three points in this regard. Markus Grabitz has more information on this.

Your
Josephin Hartwig

How the agricultural turnaround is to succeed

Agrarwende Landwirtschaft — A tractor sprays crop protection agents onto a field.

By

Timo Landenberger

One thing is clear: Sustainable agriculture does not work without nature conservation. At the same time, environmental and climate goals cannot be achieved without the agricultural sector. “Preserving biodiversity, protecting the climate, keeping water, soil and air clean – all these also benefit agriculture and our food security. Times of crisis in particular call for the environment and agriculture to stand shoulder to shoulder,” said Federal Minister for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection Steffi Lemke (Greens) last week at the 7th International Agricultural Congress at the start of Green Week in Berlin.

In short, in addition to the energy and transport transformation, a green transformation of agriculture is also needed, and Brussels is well aware of this. The biodiversity and farm-to-fork strategies provide the framework for how the agricultural transformation is to succeed. However, opinions differ when it comes to translating these into concrete measures and legislative projects.

New CAP funding period started

The year 2023 also marks the start of the new funding period for the Common Agricultural Policy (CAP), which has always been the largest item in the EU budget and thus the strongest instrument for the transformation of agriculture. Although the funds have been increasingly linked to environmental protection requirements in recent years, the eco-balance of the agricultural sector has hardly improved. This should now change as a result of the reform, which only came about in the second attempt after tough wrangling in Brussels.

In order to do justice to regional differences, the model of national strategic plans was introduced – combined with the hope that ambitious states would lead the way. But the plan backfired. Even with the German plan, largely still penned by the grand coalition, neither the EU environmental targets nor the targets set by the German government itself can be achieved.

The Federal Ministry of Food and Agriculture (BMEL) is also aware of this and has set up a monitoring committee that is to adjust the framework conditions of CAP support annually and gear them toward greater environmental protection. According to the BMEL, EU law allows for this kind of further development.

Dispute over conservation package

Meanwhile, Brussels is debating further nature conservation measures in the agricultural sector: The Commission’s proposal for a new pesticide regulation envisages halving use by 2030. This is in line with an agreement reached at global level at the World Conference on Nature (COP15) in Montreal. Nevertheless, there is sometimes fierce opposition to the plan in Brussels.

At their December meetings, the Agriculture and Energy Councils decided to first request an impact assessment from the Commission, particularly with regard to food security. As a result, the regulation has been put on the back burner for the time being. Sarah Wiener (Greens), rapporteur in the EU Parliament, is not impressed by this. She wants to submit her draft before the end of January.

César Luena (S&D), rapporteur for the renaturation law, has already presented his proposals and is calling for some significant tightening. For example, the overall target of renaturation 20 percent of the area on land and at sea is to be raised to 30 percent. Negotiations have begun in Parliament.

Luena wants to get his report through the plenum before the summer break, if possible so that the legislative process can be completed in the current legislative period. Whether this will be possible in view of the many conflicts and the expected number of amendments remains to be seen.

New soil health guideline planned

As part of the biodiversity objectives, the EU Soil Strategy sets out a framework for protecting and restoring soil health. Due in particular to unsustainable management, the ability of soils to store CO2 and absorb nutrients and water has declined steadily in recent years. According to the Commission, up to 70 percent of soils are not healthy, and a billion tons of soil are lost to erosion every year, resulting in significant losses in food production as well. This is to change.

To implement the strategy, the Commission is planning, among other things, a new directive to be presented in the second quarter of 2023. The goals include reducing land consumption and cutting soil pollution by 2050 at the latest to a level that is “no longer harmful to people’s health and to ecosystems.”

More sustainable food system and animal welfare

In the third quarter of this year, the Commission also intends to present a regulation on a more sustainable food system. This is to focus, in particular, on uniform EU-wide labeling of food with regard to the sustainability of its production.

The authority also plans to revise animal welfare legislation by the end of the year. The level of animal welfare in the EU is still only “sub-optimal,” according to a report by the Brussels-based authority. The amendment is intended to broaden the scope and, predominantly, simplify enforcement of the regulations. Animal welfare and environmental protection are directly related. Intensive livestock farming, for example, leads to overfertilization and, thus, to contamination of soil and groundwater.

Conflict minerals: Companies rarely fulfill due diligence obligations

A large proportion of companies importing so-called conflict minerals to Germany failed to fulfill their due diligence obligations in the first two years after the EU Conflict Minerals Regulation came into force. This is the result of the first control report of the German Control Body for EU Due Diligence in Raw Material Supply Chains (DEKSOR).

Tin, tantalum, tungsten, gold and their ores are often extracted in regions where armed groups control land and mines. In this context, human rights violations often occur – for example, due to forced labor in the mines or the armed groups that finance themselves from the proceeds of mining. The EU, therefore, passed a regulation in 2017 requiring importers of large quantities of these minerals to comply with due diligence requirements. The focus is on internal company risk management.

Lack of transparency a major obstacle

DEKSOR monitors compliance with the regulation in Germany. Here it is implemented by the Mineral Raw Materials Care Obligations Act (MinRohSorgG), which came into force in 2020 and has been fully applicable since 2021. DEKSOR carried out inspections of importers for the first time in 2022 retroactively for 2021. The first inspection report combines the results of the two years. For 2021, it inspected 23 importers who predominantly imported minerals from conflict and high-risk areas (CAHRAs).

A total of around 10,600 metric tons of tin, tantalum and tungsten and 175 metric tons of gold were imported into Germany in 2021. 145 companies that imported tin, tantalum, tungsten and gold into Germany were above the volume threshold that obliges them to fulfill special due diligence obligations. For most minerals, they cover over 90 percent of the total volume imported.

According to the EU regulation, controlled importers must provide audit reports from independent third parties to the national control authority. These reports are supposed to outline the measures they are pursuing to reduce risks in their supply chains. DEKSOR criticizes that the importers subsequently inspected for 2021 have only provided summaries of audit reports.

Companies do not operate their own risk management

Above all, the German inspection body criticized importers for not submitting audit reports on their own risk management systems but on smelters and refiners from which they purchased minerals and metals. They referred to an exception in the regulation, according to which own audit reports are dispensable if all smelters and refiners in the supply chain comply with the regulation. While this could be evidenced by processors belonging to industry initiatives such as the Responsible Minerals Initiative (RMI), importers would still have to conduct their own risk management and provide additional evidence of due diligence, according to DEKSOR.

However, there is currently no industry initiative recognized by the EU Commission. Importers would, therefore, not be able to rely on it at present anyway. It is not yet clear when the initiatives that have applied to the Commission for recognition will be approved.

DEKSOR also criticizes the fact that audit reports on smelters and refiners in industry initiatives such as the RMI were also only submitted in summary form. Matthias Baier, head of DEKSOR, says: “The most important thing is transparency. Importers must provide us with conclusive and verifiable evidence. Otherwise, we as an inspection body cannot assess whether they are fulfilling their due diligence obligations.”

OECD: hardly any efforts in the EU member states

From the companies’ point of view, initiatives such as the RMI fulfill an important function as data providers. “The requirement for SMEs to trace supply chains back to their origin is not feasible in practice without appropriate systems,” says a spokeswoman for the Wirtschaftsvereinigung Metalle. More support from policymakers is needed here, she adds: The promised aids from the EU Commission are not yet available, such as the recognition of initiatives or the announced global list of responsible smelters and refiners – or they are not sufficiently meaningful, such as the list of conflict and high-risk areas (CAHRA list).

Implementation is also slow in other countries: “Many EU member states appear to be unaware of or have not reported on activities related to the implementation of the EU Conflict Minerals Regulation,” the OECD wrote in a May 2022 report.

According to the EU Commission, between 600 and 1,000 companies across the EU are affected by the regulation. However, in a survey of national control authorities by Table.Media, several reported that they had identified no or very few importers exceeding the volume thresholds. In addition to the 145 companies in Germany, Austria reported 15 companies, Bulgaria three and Finland three to seven. In Luxembourg, the implementing law has not even been adopted yet.

Awareness and motivation are missing

Many companies seem to have relied so far on the fact that it is sufficient to refer to an industry initiative. But there is also a lack of awareness. “The first full year of application of the regulation has shown that only a very limited number of importers fully understand their obligations under the regulation,” says a spokesperson for the Department of the Environment, Climate and Communications, which is responsible in the Republic of Ireland.

Another possible reason: “The fact that violations are not subject to severe sanctions could also be a reason for some companies not to comply with the regulation,” says Baier from DEKSOR. However, companies knew since 2017 that they would have to comply with their due diligence obligations from 2021. So they had four years to prepare.

The European Commission is currently reviewing the Conflict Minerals Regulation. It launched the review process in the fall and, among other things, is having a study carried out to examine its effectiveness. The final report will likely be ready in the third quarter of 2023. After that, the regulation will be reviewed every three years. Nicolas Heronymus and Leonie Düngefeld

Metal industry calls for strong response to IRA

European metals industry association Eurometaux has written to the EU Commission calling for an effective industrial policy response to the US Inflation Reduction Act (IRA). The EU Green Deal industrial plan and the planned Critical Raw Materials Act must send a stronger investment and competition signal to the entire clean energy technology supply chain, the letter, published yesterday, says.

EU plans to produce solar cells, batteries, hydrogen, chips and other technologies required significant new quantities of metal, the supply of which was short. The US Inflation Reduction Act, while discriminatory, has shown “what a proactive industrial policy for clean technologies could look like.” Because of its predictability, value chain approach, financing, and tax incentives, new investment in US mineral production would be driven.

With its planned industrial package, the EU could not only help existing capacity recover and decarbonize but could also boost new investment in base metals, battery materials and rare earths.

Eurometaux lists five recommendations for this:

Establish EU production targets, incentives, and accelerated project tracking for the entire clean energy technology supply chain;
Provide streamlined and comprehensive EU financial support for strategic supply chains along the lines of the IRA;
Reduce EU electricity prices by improving the terms of long-term supply contracts, especially with renewables;
Maintain the Temporary Crisis Framework with a focus on mitigating the energy crisis, improving its provisions and implementation by member states to ensure full recovery of threatened European industries;
Regulatory predictability and coherence in other policy areas, for example, incorporating industrial policy priorities into ongoing reviews of EU chemicals legislation, accelerating EU trade defense measures, ensuring free and fair global trade in strategic raw materials.

In Eurometaux’s view, the Critical Raw Materials Act should formally define the metals and minerals required for the energy transition and digital transformation, as well as for other strategic value chains. The list of critical raw materials would then need to be expanded to include some battery metals, rare earth metals and base metals such as aluminum, zinc and copper. leo

Commission wants more social dialog

Dialog between employers and workforces is to be intensified. “A lively social dialog and strong social partners are necessary for Europe to remain competitive and inclusive,” demands Social Commissioner Nicolas Schmit. In its meeting yesterday, the Commission adopted a communication and a Council recommendation on the promotion of social dialog.

Negotiations between the employer and employee sides and collective bargaining would help to improve the working and living conditions of employees, for example in terms of pay, working hours, vacation entitlement, family time, further training and health and safety at work.

The social dialog varies from one member state to another. Nevertheless, the proportion of trade union members among employees is declining. The level of unionization averaged 66 percent across the EU in 2000 and 56 percent in 2019. The Council recommendation provides for three points:

Consultation of the social partners in accordance with national circumstances on economy, labor market and social policies;
Encouraging the social partners to also address atypical employment and new forms of work;
More skills for the organizations of employers and employees. mgr

Data Act: the Council’s fourth compromise

As expected, the Swedish Council Presidency has drafted a fourth compromise paper on the Data Act, which is available to Europe.Table. It contains proposed amendments to key points such as trade secrets, the scope of application (Chapter II), SMEs and compensation (Chapter V), and the interaction between the Data Act and the GDPR. According to a recent statement, Germany also sees a need for clarification in some areas.

The Presidency asks member states to discuss the changes at the Telecommunications Working Group meeting on Jan. 31, 2023. Delegations will then have until Feb. 3, 2023 to provide feedback. The Swedes are aiming to reach a General Approach before the end of their Presidency.

New definition of data

The main changes are as follows:

Trade secrets: There is an addition here to prevent the disclosure of data to third parties in connection with the development of competing products. Data owners and third parties can also agree on additional measures to maintain confidentiality. In addition, the recitals now refer to the Trade Secrets Directive.
Scope: The focus is now on the functionality of the data rather than the products. Accordingly, the definition reads, “data generated by the use of a product or related service.” The recitals now say “pre-processed” instead of “processed” to refer to data that has not undergone significant change or required major investment.
Compensation: Micro-enterprises and small businesses should now only have to provide data to public bodies in emergency situations and be able to claim compensation for doing so.
GDPR: The law provides for notification to an independent data protection authority when personal data is involved. In addition, the recitals emphasize the special protection that this data enjoys – even in cases where products process or store it.
Fairness: Protection against unfair contract terms has been extended by replacing the specific references to SMEs with a general reference to all companies.
Cloud Switching: The text explains the possible obstacles to effective provider switching and explains the steps of the switching process as well as the rights and obligations of the various parties. In addition, it clarifies the transparency obligations for providers of data processing services in international access and transmission. vis

Laboratory monkeys in short supply across Europe

Laboratory monkeys in biomedical research are becoming scarce. Until 2020, monkeys for medical research came mainly from China. But the People’s Republic stopped the export at the very beginning of the Covid pandemic. At that time, it was not certain whether the virus could also be transmitted by the laboratory primates. However, Beijing has not lifted the export ban since then.

As a result, it has become increasingly difficult for Europe as a research location to obtain suitable laboratory monkeys. Recently enacted stricter EU regulations on which monkeys may be used for research further exacerbate the situation for laboratories. Due to more difficult access to research primates and rising costs, research in the EU could become less attractive in the future – and migrate towards China.

During the search for vaccines and drugs against Covid, the need for animals has increased rapidly. Those who have been vaccinated against the virus with a vaccine approved in the EU, for example, have received a vaccine tested on laboratory monkeys. Animals are irreplaceable for some of this biomedical research.

Until the Chinese export ban, Germany needed between 2,000 and 3,000 test monkeys per year, mostly for legally required drug tests by pharmaceutical companies, explains Stefan Treue, director of the German Primate Center (DPZ). In total, there were around 10,000 in Europe.

Breeders sell to countries without restrictions

Brussels is now also causing problems: According to a new EU regulation, European companies and research institutions have only been allowed to use animals from the so-called F2 generation since November. F0 animals are born in the wild. F1 animals are their offspring, F2 then the next generation. The EU decided on this regulation a good ten years ago. However, the transition period did not expire until November 2022. In order to breed an F2 generation, F1 animals must be available. In the current crisis, however, demand is so great that breeders are selling the animals to countries where there are no such generation restrictions, according to the biologist.

Stefan Treue does not believe that the situation in the EU will improve in the near future. “If anything, the problem is becoming more pressing.” The effects of the export ban are also being felt at the DPZ, Treue explains. Because of the currently very high demand for laboratory animals for Covid research, the center would normally buy monkeys in addition, says Treue. But there are none on the market.

The EU Commission is aware of the situation, a spokeswoman said. She pointed to the possibility of EU countries allowing exceptions. “Here it would be important for EU countries to find a sensible balance between banning the continued use of certain animals and the risks of this rule for animal welfare and science in Europe,” Treue stressed. Amelie Richter

Simone Peter – advocating renewables

Former Green Party co-chair Simone Peter is president of the German Renewable Energy Federation (BEE).

In recent weeks, there has been a heated debate in Germany about heating. Should hydrogen also be used for private heating or should there be a greater focus on heat pumps and renewable energies? Simone Peter has a clear opinion: “The calls for the recognition of hydrogen-ready heating systems are counterproductive in this context, because they have less the welfare of consumers or the climate in mind than the prolonged sales of fossil gas boilers”. The president of the German Renewable Energy Federation (BEE) is calling on the Bundestag to ensure that the requirement for newly installed heating systems to use 65 percent renewable electricity from next year is “binding and without exceptions”. Yesterday, an amendment to the law on the subject was passed by the federal cabinet. The Bundestag still has to approve it.

Peter has been fighting for renewables as BEE chairwoman since 2018. Germany is far from a sufficient expansion of renewables, the former Green Party chairwoman says: “We are now experiencing the consequences of a policy that no longer gave renewables the priority guaranteed by law.” Germany has lost the photovoltaic industry to Chinese competition. One reason, he said, was that the government cut the feed-in tariffs for the plants. Rotor blade manufacturing for wind turbines also no longer exists in Germany. “That hurts a lot.”

In order to reclaim the position of a climate action pioneer, politicians must advance the expansion of renewables in the electricity, heating and transport sectors. So far, the government has been too cautious in tackling the heat transition in buildings, says Peter. “There’s still a lot of ground to be covered here.” And if that happens, Peter believes the energy transition as a whole could move even faster than anyone thought at the beginning of 2022.

From anti-nuclear protests to Green Party co-chair

Simone Peter became interested in sustainability and green issues at an early age. When the construction of the French nuclear power plant in Cattenom near the border was announced, thousands demonstrated against nuclear energy in Saarland. Among them were the teenager Simone Peter and her entire family. “I am a classic child of the 1980s,” says the current president of the German Renewable Energy Federation (BEE). Awareness of environmental issues ran in the family: “We were the first in town with solar cells on the roof and an electric car. That was in 1988.”

Simone Peter was born in Quierschied, Saarland, in 1965. She studied biology at Saarland University and obtained her doctorate in 2000 at the Chair of Microbiology.

Politically, Peter became involved with the Green Party early on. “I was drawn to the Greens and their topics – from dying forests to women to peace policy.” Peter’s commitment turned into a career. In 2009, she became environment minister in her home state, and in 2013, federal chairwoman of the Alliance 90/The Greens party.

Advocating flexibility in electricity market design

At the EU level, Peter is currently fighting against the threat of a new “planned economy” in the electricity sector. She believes that promoting renewables through so-called contracts for differences is the wrong way to go. The market design must be sustainable in the long term, she says. “That doesn’t mean replacing one rigid system with another rigid system,” Peter says. What renewables need, she says, is more flexibility in the electricity market.

Despite the slow progress in Germany, the BEE president recognizes movement in politics: “We recognize that the German government has done more with its 30 or so legislative packages in recent months than the last few governments have done in the past ten years.”

Is she still a party member? “Of course I’m still with the Greens. That is and will remain part of my biography.” However, the BEE is organized across party lines. And that’s a good thing, she says. Svenja Schlicht

EUROPE.TABLE EDITORS

Till
Hoppe

Charlotte
Wirth

Falk
Steiner

Timo
Landenberger

Corinna
Visser

Lukas
Knigge

Eric
Bonse

Sarah
Schaefer

Manuel
Berkel

Lisa-Martina
Klein

Markus
Grabitz

Stephan
Israel

Claire
Stam

Dear reader,

In addition to the energy and transport reforms, agriculture is also in need of reform. There was broad agreement on this in Brussels. Timo Landenberger knows where things are still going too slowly and how the turnaround can still succeed.

Companies that import potentially conflict-affected minerals to Germany must comply with a due diligence obligation. This is because human rights violations often occur in this context – for example, through forced labor in the mines or through armed groups that finance themselves from the proceeds of mining. An initial assessment does not paint a good picture. My fellow journalists Leonie Düngefeld and Nicolas Heronymus know the details.

The Commission also agreed to promote social dialogue more strongly. The Council recommendation provides for three points in this regard. Markus Grabitz has more information on this.

Your
Josephin Hartwig

How the agricultural turnaround is to succeed

By

Timo Landenberger

One thing is clear: Sustainable agriculture does not work without nature conservation. At the same time, environmental and climate goals cannot be achieved without the agricultural sector. “Preserving biodiversity, protecting the climate, keeping water, soil and air clean – all these also benefit agriculture and our food security. Times of crisis in particular call for the environment and agriculture to stand shoulder to shoulder,” said Federal Minister for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection Steffi Lemke (Greens) last week at the 7th International Agricultural Congress at the start of Green Week in Berlin.

In short, in addition to the energy and transport transformation, a green transformation of agriculture is also needed, and Brussels is well aware of this. The biodiversity and farm-to-fork strategies provide the framework for how the agricultural transformation is to succeed. However, opinions differ when it comes to translating these into concrete measures and legislative projects.

New CAP funding period started

The year 2023 also marks the start of the new funding period for the Common Agricultural Policy (CAP), which has always been the largest item in the EU budget and thus the strongest instrument for the transformation of agriculture. Although the funds have been increasingly linked to environmental protection requirements in recent years, the eco-balance of the agricultural sector has hardly improved. This should now change as a result of the reform, which only came about in the second attempt after tough wrangling in Brussels.

In order to do justice to regional differences, the model of national strategic plans was introduced – combined with the hope that ambitious states would lead the way. But the plan backfired. Even with the German plan, largely still penned by the grand coalition, neither the EU environmental targets nor the targets set by the German government itself can be achieved.

The Federal Ministry of Food and Agriculture (BMEL) is also aware of this and has set up a monitoring committee that is to adjust the framework conditions of CAP support annually and gear them toward greater environmental protection. According to the BMEL, EU law allows for this kind of further development.

Dispute over conservation package

Meanwhile, Brussels is debating further nature conservation measures in the agricultural sector: The Commission’s proposal for a new pesticide regulation envisages halving use by 2030. This is in line with an agreement reached at global level at the World Conference on Nature (COP15) in Montreal. Nevertheless, there is sometimes fierce opposition to the plan in Brussels.

At their December meetings, the Agriculture and Energy Councils decided to first request an impact assessment from the Commission, particularly with regard to food security. As a result, the regulation has been put on the back burner for the time being. Sarah Wiener (Greens), rapporteur in the EU Parliament, is not impressed by this. She wants to submit her draft before the end of January.

César Luena (S&D), rapporteur for the renaturation law, has already presented his proposals and is calling for some significant tightening. For example, the overall target of renaturation 20 percent of the area on land and at sea is to be raised to 30 percent. Negotiations have begun in Parliament.

Luena wants to get his report through the plenum before the summer break, if possible so that the legislative process can be completed in the current legislative period. Whether this will be possible in view of the many conflicts and the expected number of amendments remains to be seen.

New soil health guideline planned

As part of the biodiversity objectives, the EU Soil Strategy sets out a framework for protecting and restoring soil health. Due in particular to unsustainable management, the ability of soils to store CO2 and absorb nutrients and water has declined steadily in recent years. According to the Commission, up to 70 percent of soils are not healthy, and a billion tons of soil are lost to erosion every year, resulting in significant losses in food production as well. This is to change.

To implement the strategy, the Commission is planning, among other things, a new directive to be presented in the second quarter of 2023. The goals include reducing land consumption and cutting soil pollution by 2050 at the latest to a level that is “no longer harmful to people’s health and to ecosystems.”

More sustainable food system and animal welfare

In the third quarter of this year, the Commission also intends to present a regulation on a more sustainable food system. This is to focus, in particular, on uniform EU-wide labeling of food with regard to the sustainability of its production.

The authority also plans to revise animal welfare legislation by the end of the year. The level of animal welfare in the EU is still only “sub-optimal,” according to a report by the Brussels-based authority. The amendment is intended to broaden the scope and, predominantly, simplify enforcement of the regulations. Animal welfare and environmental protection are directly related. Intensive livestock farming, for example, leads to overfertilization and, thus, to contamination of soil and groundwater.

Conflict minerals: Companies rarely fulfill due diligence obligations

A large proportion of companies importing so-called conflict minerals to Germany failed to fulfill their due diligence obligations in the first two years after the EU Conflict Minerals Regulation came into force. This is the result of the first control report of the German Control Body for EU Due Diligence in Raw Material Supply Chains (DEKSOR).

Tin, tantalum, tungsten, gold and their ores are often extracted in regions where armed groups control land and mines. In this context, human rights violations often occur – for example, due to forced labor in the mines or the armed groups that finance themselves from the proceeds of mining. The EU, therefore, passed a regulation in 2017 requiring importers of large quantities of these minerals to comply with due diligence requirements. The focus is on internal company risk management.

Lack of transparency a major obstacle

DEKSOR monitors compliance with the regulation in Germany. Here it is implemented by the Mineral Raw Materials Care Obligations Act (MinRohSorgG), which came into force in 2020 and has been fully applicable since 2021. DEKSOR carried out inspections of importers for the first time in 2022 retroactively for 2021. The first inspection report combines the results of the two years. For 2021, it inspected 23 importers who predominantly imported minerals from conflict and high-risk areas (CAHRAs).

A total of around 10,600 metric tons of tin, tantalum and tungsten and 175 metric tons of gold were imported into Germany in 2021. 145 companies that imported tin, tantalum, tungsten and gold into Germany were above the volume threshold that obliges them to fulfill special due diligence obligations. For most minerals, they cover over 90 percent of the total volume imported.

According to the EU regulation, controlled importers must provide audit reports from independent third parties to the national control authority. These reports are supposed to outline the measures they are pursuing to reduce risks in their supply chains. DEKSOR criticizes that the importers subsequently inspected for 2021 have only provided summaries of audit reports.

Companies do not operate their own risk management

Above all, the German inspection body criticized importers for not submitting audit reports on their own risk management systems but on smelters and refiners from which they purchased minerals and metals. They referred to an exception in the regulation, according to which own audit reports are dispensable if all smelters and refiners in the supply chain comply with the regulation. While this could be evidenced by processors belonging to industry initiatives such as the Responsible Minerals Initiative (RMI), importers would still have to conduct their own risk management and provide additional evidence of due diligence, according to DEKSOR.

However, there is currently no industry initiative recognized by the EU Commission. Importers would, therefore, not be able to rely on it at present anyway. It is not yet clear when the initiatives that have applied to the Commission for recognition will be approved.

DEKSOR also criticizes the fact that audit reports on smelters and refiners in industry initiatives such as the RMI were also only submitted in summary form. Matthias Baier, head of DEKSOR, says: “The most important thing is transparency. Importers must provide us with conclusive and verifiable evidence. Otherwise, we as an inspection body cannot assess whether they are fulfilling their due diligence obligations.”

OECD: hardly any efforts in the EU member states

From the companies’ point of view, initiatives such as the RMI fulfill an important function as data providers. “The requirement for SMEs to trace supply chains back to their origin is not feasible in practice without appropriate systems,” says a spokeswoman for the Wirtschaftsvereinigung Metalle. More support from policymakers is needed here, she adds: The promised aids from the EU Commission are not yet available, such as the recognition of initiatives or the announced global list of responsible smelters and refiners – or they are not sufficiently meaningful, such as the list of conflict and high-risk areas (CAHRA list).

Implementation is also slow in other countries: “Many EU member states appear to be unaware of or have not reported on activities related to the implementation of the EU Conflict Minerals Regulation,” the OECD wrote in a May 2022 report.

According to the EU Commission, between 600 and 1,000 companies across the EU are affected by the regulation. However, in a survey of national control authorities by Table.Media, several reported that they had identified no or very few importers exceeding the volume thresholds. In addition to the 145 companies in Germany, Austria reported 15 companies, Bulgaria three and Finland three to seven. In Luxembourg, the implementing law has not even been adopted yet.

Awareness and motivation are missing

Many companies seem to have relied so far on the fact that it is sufficient to refer to an industry initiative. But there is also a lack of awareness. “The first full year of application of the regulation has shown that only a very limited number of importers fully understand their obligations under the regulation,” says a spokesperson for the Department of the Environment, Climate and Communications, which is responsible in the Republic of Ireland.

Another possible reason: “The fact that violations are not subject to severe sanctions could also be a reason for some companies not to comply with the regulation,” says Baier from DEKSOR. However, companies knew since 2017 that they would have to comply with their due diligence obligations from 2021. So they had four years to prepare.

The European Commission is currently reviewing the Conflict Minerals Regulation. It launched the review process in the fall and, among other things, is having a study carried out to examine its effectiveness. The final report will likely be ready in the third quarter of 2023. After that, the regulation will be reviewed every three years. Nicolas Heronymus and Leonie Düngefeld

Metal industry calls for strong response to IRA

European metals industry association Eurometaux has written to the EU Commission calling for an effective industrial policy response to the US Inflation Reduction Act (IRA). The EU Green Deal industrial plan and the planned Critical Raw Materials Act must send a stronger investment and competition signal to the entire clean energy technology supply chain, the letter, published yesterday, says.

EU plans to produce solar cells, batteries, hydrogen, chips and other technologies required significant new quantities of metal, the supply of which was short. The US Inflation Reduction Act, while discriminatory, has shown “what a proactive industrial policy for clean technologies could look like.” Because of its predictability, value chain approach, financing, and tax incentives, new investment in US mineral production would be driven.

With its planned industrial package, the EU could not only help existing capacity recover and decarbonize but could also boost new investment in base metals, battery materials and rare earths.

Eurometaux lists five recommendations for this:

Establish EU production targets, incentives, and accelerated project tracking for the entire clean energy technology supply chain;
Provide streamlined and comprehensive EU financial support for strategic supply chains along the lines of the IRA;
Reduce EU electricity prices by improving the terms of long-term supply contracts, especially with renewables;
Maintain the Temporary Crisis Framework with a focus on mitigating the energy crisis, improving its provisions and implementation by member states to ensure full recovery of threatened European industries;
Regulatory predictability and coherence in other policy areas, for example, incorporating industrial policy priorities into ongoing reviews of EU chemicals legislation, accelerating EU trade defense measures, ensuring free and fair global trade in strategic raw materials.

In Eurometaux’s view, the Critical Raw Materials Act should formally define the metals and minerals required for the energy transition and digital transformation, as well as for other strategic value chains. The list of critical raw materials would then need to be expanded to include some battery metals, rare earth metals and base metals such as aluminum, zinc and copper. leo

Commission wants more social dialog

Dialog between employers and workforces is to be intensified. “A lively social dialog and strong social partners are necessary for Europe to remain competitive and inclusive,” demands Social Commissioner Nicolas Schmit. In its meeting yesterday, the Commission adopted a communication and a Council recommendation on the promotion of social dialog.

Negotiations between the employer and employee sides and collective bargaining would help to improve the working and living conditions of employees, for example in terms of pay, working hours, vacation entitlement, family time, further training and health and safety at work.

The social dialog varies from one member state to another. Nevertheless, the proportion of trade union members among employees is declining. The level of unionization averaged 66 percent across the EU in 2000 and 56 percent in 2019. The Council recommendation provides for three points:

Consultation of the social partners in accordance with national circumstances on economy, labor market and social policies;
Encouraging the social partners to also address atypical employment and new forms of work;
More skills for the organizations of employers and employees. mgr

Data Act: the Council’s fourth compromise

As expected, the Swedish Council Presidency has drafted a fourth compromise paper on the Data Act, which is available to Europe.Table. It contains proposed amendments to key points such as trade secrets, the scope of application (Chapter II), SMEs and compensation (Chapter V), and the interaction between the Data Act and the GDPR. According to a recent statement, Germany also sees a need for clarification in some areas.

The Presidency asks member states to discuss the changes at the Telecommunications Working Group meeting on Jan. 31, 2023. Delegations will then have until Feb. 3, 2023 to provide feedback. The Swedes are aiming to reach a General Approach before the end of their Presidency.

New definition of data

The main changes are as follows:

Trade secrets: There is an addition here to prevent the disclosure of data to third parties in connection with the development of competing products. Data owners and third parties can also agree on additional measures to maintain confidentiality. In addition, the recitals now refer to the Trade Secrets Directive.
Scope: The focus is now on the functionality of the data rather than the products. Accordingly, the definition reads, “data generated by the use of a product or related service.” The recitals now say “pre-processed” instead of “processed” to refer to data that has not undergone significant change or required major investment.
Compensation: Micro-enterprises and small businesses should now only have to provide data to public bodies in emergency situations and be able to claim compensation for doing so.
GDPR: The law provides for notification to an independent data protection authority when personal data is involved. In addition, the recitals emphasize the special protection that this data enjoys – even in cases where products process or store it.
Fairness: Protection against unfair contract terms has been extended by replacing the specific references to SMEs with a general reference to all companies.
Cloud Switching: The text explains the possible obstacles to effective provider switching and explains the steps of the switching process as well as the rights and obligations of the various parties. In addition, it clarifies the transparency obligations for providers of data processing services in international access and transmission. vis

Laboratory monkeys in short supply across Europe

Laboratory monkeys in biomedical research are becoming scarce. Until 2020, monkeys for medical research came mainly from China. But the People’s Republic stopped the export at the very beginning of the Covid pandemic. At that time, it was not certain whether the virus could also be transmitted by the laboratory primates. However, Beijing has not lifted the export ban since then.

As a result, it has become increasingly difficult for Europe as a research location to obtain suitable laboratory monkeys. Recently enacted stricter EU regulations on which monkeys may be used for research further exacerbate the situation for laboratories. Due to more difficult access to research primates and rising costs, research in the EU could become less attractive in the future – and migrate towards China.

During the search for vaccines and drugs against Covid, the need for animals has increased rapidly. Those who have been vaccinated against the virus with a vaccine approved in the EU, for example, have received a vaccine tested on laboratory monkeys. Animals are irreplaceable for some of this biomedical research.

Until the Chinese export ban, Germany needed between 2,000 and 3,000 test monkeys per year, mostly for legally required drug tests by pharmaceutical companies, explains Stefan Treue, director of the German Primate Center (DPZ). In total, there were around 10,000 in Europe.

Breeders sell to countries without restrictions

Brussels is now also causing problems: According to a new EU regulation, European companies and research institutions have only been allowed to use animals from the so-called F2 generation since November. F0 animals are born in the wild. F1 animals are their offspring, F2 then the next generation. The EU decided on this regulation a good ten years ago. However, the transition period did not expire until November 2022. In order to breed an F2 generation, F1 animals must be available. In the current crisis, however, demand is so great that breeders are selling the animals to countries where there are no such generation restrictions, according to the biologist.

Stefan Treue does not believe that the situation in the EU will improve in the near future. “If anything, the problem is becoming more pressing.” The effects of the export ban are also being felt at the DPZ, Treue explains. Because of the currently very high demand for laboratory animals for Covid research, the center would normally buy monkeys in addition, says Treue. But there are none on the market.

The EU Commission is aware of the situation, a spokeswoman said. She pointed to the possibility of EU countries allowing exceptions. “Here it would be important for EU countries to find a sensible balance between banning the continued use of certain animals and the risks of this rule for animal welfare and science in Europe,” Treue stressed. Amelie Richter

Simone Peter – advocating renewables

In recent weeks, there has been a heated debate in Germany about heating. Should hydrogen also be used for private heating or should there be a greater focus on heat pumps and renewable energies? Simone Peter has a clear opinion: “The calls for the recognition of hydrogen-ready heating systems are counterproductive in this context, because they have less the welfare of consumers or the climate in mind than the prolonged sales of fossil gas boilers”. The president of the German Renewable Energy Federation (BEE) is calling on the Bundestag to ensure that the requirement for newly installed heating systems to use 65 percent renewable electricity from next year is “binding and without exceptions”. Yesterday, an amendment to the law on the subject was passed by the federal cabinet. The Bundestag still has to approve it.

Peter has been fighting for renewables as BEE chairwoman since 2018. Germany is far from a sufficient expansion of renewables, the former Green Party chairwoman says: “We are now experiencing the consequences of a policy that no longer gave renewables the priority guaranteed by law.” Germany has lost the photovoltaic industry to Chinese competition. One reason, he said, was that the government cut the feed-in tariffs for the plants. Rotor blade manufacturing for wind turbines also no longer exists in Germany. “That hurts a lot.”

In order to reclaim the position of a climate action pioneer, politicians must advance the expansion of renewables in the electricity, heating and transport sectors. So far, the government has been too cautious in tackling the heat transition in buildings, says Peter. “There’s still a lot of ground to be covered here.” And if that happens, Peter believes the energy transition as a whole could move even faster than anyone thought at the beginning of 2022.

From anti-nuclear protests to Green Party co-chair

Simone Peter became interested in sustainability and green issues at an early age. When the construction of the French nuclear power plant in Cattenom near the border was announced, thousands demonstrated against nuclear energy in Saarland. Among them were the teenager Simone Peter and her entire family. “I am a classic child of the 1980s,” says the current president of the German Renewable Energy Federation (BEE). Awareness of environmental issues ran in the family: “We were the first in town with solar cells on the roof and an electric car. That was in 1988.”

Simone Peter was born in Quierschied, Saarland, in 1965. She studied biology at Saarland University and obtained her doctorate in 2000 at the Chair of Microbiology.

Politically, Peter became involved with the Green Party early on. “I was drawn to the Greens and their topics – from dying forests to women to peace policy.” Peter’s commitment turned into a career. In 2009, she became environment minister in her home state, and in 2013, federal chairwoman of the Alliance 90/The Greens party.

Advocating flexibility in electricity market design

At the EU level, Peter is currently fighting against the threat of a new “planned economy” in the electricity sector. She believes that promoting renewables through so-called contracts for differences is the wrong way to go. The market design must be sustainable in the long term, she says. “That doesn’t mean replacing one rigid system with another rigid system,” Peter says. What renewables need, she says, is more flexibility in the electricity market.

Despite the slow progress in Germany, the BEE president recognizes movement in politics: “We recognize that the German government has done more with its 30 or so legislative packages in recent months than the last few governments have done in the past ten years.”

Is she still a party member? “Of course I’m still with the Greens. That is and will remain part of my biography.” However, the BEE is organized across party lines. And that’s a good thing, she says. Svenja Schlicht