This paper - part of the A Circular Economy Vision series - follows one of Circular Innovation Lab's previous analyses of the potential effects of the European Critical Raw Materials Regulation (ECRMR) on developing economies.

It focuses on the EU’s domestic critical raw material (CRM) markets, revealing how the current hyperfocus of the policy on extraction, processing and recycling is not applicable to all identified CRMs. By analysing the limits of the ECRMR as it stands, the paper argues that a supporting structure of circular economy legislation could promote a successful ECRMR for all CRMs, not just those that could benefit from recycling infrastructure.

The paper provides detailed policy recommendations for each CRM where data allow.

As the world transitions to green energy and greater technology use, critical raw materials (CRMs) are the new frontier of economic and political disputes.

The EU has recognised this threat to supply chains, passing the European Critical Raw Materials Regulation to help stabilise EU access to CRMs. Published in March 2023, the regulation seeks to improve EU extraction, processing and recycling capacity with minimal reliance on other states. However, the EU has limited sources of many CRMs, and so strategic projects in third countries will be utilised to ensure that EU demand is met.

This paper discusses the possible impact of this regulation on developing economies, exploring how they will be affected by strategic projects, shifting EU import demand, and circularity incentives.