EU Regulation and strategy for minerals and metals from conflict affected and high risk areas European Commission, DG TRADE October 2017 Signe RATSO Signe.RATSO@ec.europa.eu.

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Presentation transcript:

EU Regulation and strategy for minerals and metals from conflict affected and high risk areas European Commission, DG TRADE October 2017 Signe RATSO Signe.RATSO@ec.europa.eu Director

Why? Natural resources: a driver for development but often linked to conflict and instability Existing initiatives on responsible sourcing of minerals: US Dodd-Frank Act Section 1502 OECD Due Diligence Guidance International Conference on the GLR (DRC, Rwanda) Numerous public and private initiatives (CFSP, LBMA, RJC, DMCC) European Parliament Resolution (2010, 2011 and 2014) on conflict minerals Integrated EU approach on responsible mineral sourcing proposed (5 March 2014)

EU Regulation Regulation entered into force 8 June 2017 and will apply to EU importers as of 1 January 2021 Main elements Mandatory due diligence for European Union importers of 3TG minerals and metals where annual import volumes exceed thresholds Global geographical scope: due diligence irrespective of origin EU importers

EU Regulation Main elements Obligations for EU importers consistent with the 5-step framework and risks set out in the OECD Due Diligence Guidance EU Recognition of supply chain due diligence industry schemes largely based on OECD methodology and criteria Member States competent authorities ex-post checks EU list of global responsible smelters/refiners Review in 2023, and every three years thereafter

Additional commitments Commission commitments External expert to provide an indicative, non-exhaustive list of conflict-affected and high-risk areas. The Commission shall review the Regulation and consider making additional legislative proposals targeted at downstream companies with 3TG in their supply chain Non-binding reporting guidelines to complement Non- Financial Disclosure Directive (published June 2017) Transparency Database (2018) SME support system for supply chain due diligence (e.g. simple guides, web-based support, training)

EU project support (a few examples) EU Foreign Policy Instrument (FPI) Support to the ICGLR Regional Initiative on Natural Resources (€3 million) Support to the OECD Secretariat (€3 million (2016-2019)) EU-UN Partnership on land, natural resources and conflict prevention (€1,5 million) Burkina Faso, Ivory Coast, Central African Republic (PAC, ARM) EU Development Cooperation (DEVCO) DRC: Fight against child abuse, including in CAHR (€1 million) DRC: Combating violence and providing protection to vulnerable children in Province Oriental (€1 million) and North Kivu (€1,2 million) Regional Project for Peace and Security for stability of the Great Lakes Region (€3-4 million)

EPRM European Partnership for Responsible Minerals 12 May 2016, launched by EU Member States (NL, UK, DE, others considering), the European Commission, businesses and NGOs Working together to support the socially responsible extraction of minerals, especially in conflict zones and other high-risk areas. Together making a difference on the ground in vulnerable regions and in the supply chains connecting EU businesses and consumers Currently working on involving cross-sectoral downstream companies

International Outreach United States China India United Arab Emirates Colombia Mexico South Africa Malaysia Thailand Canada

More information DG TRADE website The regulation explained Help for business Legal text and documents http://ec.europa.eu/trade/policy/in-focus/conflict-minerals-regulation/