On April 17, HCSS strategic analyst Irina Patrahau joined the Euromines Policy Committee meeting where she discussed the role of technical standards in furthering ESG, as well as supply security for critical raw materials.
Patrahau provided an introductory statement on “Standards for Critical Raw Materials”:
“Standards are becoming more and more political. Rising geopolitical tensions are impacting the open trade of critical minerals. Growing competition between the US and China, increasing pressure on global value chains as a result of the Covid-19 pandemic, and global instability caused by the war in Ukraine and the Israel-Gaza war, have caused a perfect storm for the multilateral order and global trade. One of the strategic instruments that is becoming relevant in this geopolitical competition is standard setting.
While traditionally seen as a purely technical tool for ensuring interoperability between products, standardization has developed into an increasingly strategic instrument. Formulating standards can support benefits from first mover advantages, expand products’ market reach, and create avenues for fostering long-term dependencies. While the Chinese government has been quite intentional in its approach since China Standards 2035 was introduced in 2018, European states are also increasingly aware and analyse the benefits and challenges of strategic standard setting.”
The importance of harmonization among European countries and strategic approaches rather than pursuing the development of new standards independently and creating more fragmentation in the European market was a key take-away of the discussion.