The “Invest in EU Hub” is a new service to promote Japanese investments in the EU. It will ‘signpost’ potential Japanese investors and other stakeholders to relevant sources of information and resources at EU-level and in EU27 member-states.
This webpage includes details of the Call for Strategic Projects under the Critical Raw Materials Act and a disclaimer.
Call for Strategic Projects under the Critical Raw Materials Act
On 24 May 2024, the EU's Critical Raw Materials Act ("CRM Act") entered into force. It will ensure a secure and sustainable supply of critical raw materials that underpin the green and digital transformations by strengthening all stages of the EU critical raw materials value chain, diversifying imports, improving monitoring and mitigation of disruption risks to the supply of CRM and improving circularity and sustainability. To do this, it will set priorities and objectives to strengthen the EU's CRM supply chains, include measures to improve circularity and ensure an efficient use of CRM, boost preparedness and the mitigation of supply risks and establish a CRM board to coordinate these actions and discuss the EU's strategic partnerships with third countries.
In a four-pronged approach, the CRM Act will:
- Incentivise the extraction of raw materials in EU territory aiming for at least 10% of the EU's annual consumption of strategic raw materials to come from EU-extracted ores, minerals or concentrates by 2030, and
- Boost the EU processing capacity so that, by 2030, at least 40% of the EU's annual consumption of the materials is produced in the EU, and
- Grow the EU's recycling capabilities so that, by 2030, at least 25% of the EU's annual consumption is produced through recycling, and
- Reduce dependency on single third-country suppliers of any raw material, setting a target that no single non-EU country accounts for more than 65% of the EU's annual consumption of that strategic raw material.
On 23 May, the EU made a call for Strategic Projects to build strategic raw material capabilities along the whole value chain both within and outside the EU27.
These projects will benefit from:
- co-ordinated financial guidance,
- support to facilitate off-take agreements, and
- accelerated permitting procedures in the EU (within 27 months for extraction projects or within 15 months for processing or recycling projects).
To boost access to finance, Strategic Projects can benefit from EU funding and may - where private investment is insufficient - also benefit from member state support in the form of guarantees, loans or equity and quasi-equity investments even when that constitutes State aid. Under the EU Global Gateway initiative, funding is also possible for Strategic Projects based outside the EU.
Are Japanese entities able to apply?
Yes, project promoters from Japan and other third countries can apply for the status of strategic project provided they fulfil the eligibility criteria defined in the Regulation. In particular, the project needs to contribute meaningfully to the security of the EU’s supply of strategic raw materials.
Under the 2023 Administrative Arrangement on Cooperation in Critical Raw Materials Supply Chains agreed between DG GROW and the Japan Organization for Metals and Energy Security (JOGMEC), the EU is actively looking to reinforce its cooperation with Japan on CRM issues. This will be achieved through sharing information and deepening their understandings in key areas, particularly in supply chain risk management, innovation, and recycling and circularity frameworks and through exchanging information on projects and relevant support instruments.
What are the key criteria that projects must meet?
- Make a 'meaningful contribution' to achieving the CRM Act's 2030 benchmarks set to diversify the strategic raw materials value chain by setting minimum levels for extraction, processing, recycling and proportion supplied by a single third country.
- Address at least one of the 17 strategic raw materials listed in Annex I of the Act.
- Already be – or become – technically feasible within a reasonable time frame and show expected production volumes.
- Be sustainably implementable, minimising environmental impacts and socially adverse impacts.
- (For projects in the EU – Have cross-border benefits beyond the member state concerned.)
The assessment process will consider the technical, financial and ESG-related aspects of the project as well as its UNFC classification.
What is the timeline?
Applications must be submitted no later than 7 PM JST (12 PM CEST) on 22 August 2024.
The call for applications will stay permanently open with occasional cut-off dates. The next cut-off date is likely to be in Q1, 2025.
More information
The Call for Strategic Projects website includes the Application Form, FAQ on Strategic Projects, a recording and slides from an Information Day, and a guide for applicants. Any questions? E-mail grow-crma-strategic-projects@ec.europa.eu
Disclaimer
The EU-Japan Centre for Industrial Cooperation is not involved in any way in the calls / proposals promoted on this webpage (i.e., it has no role in accepting or processing questions or offers submitted in relation to a call). The contents of this webpage are made available for general information and non-commercial purposes only. It does not claim to be comprehensive or up to date and is not intended to provide legal or other advice. No person should rely on the contents of this webpage without first obtaining advice from a qualified professional person.
If you have questions about the 'Invest in EU Hub' as opposed to the calls or other proposals featured on this webpage please email us.
