Jakarta – Highlighting the growing public discourse on critical minerals, Publish What You Pay (PWYP) Indonesia held the PWYP Knowledge Forum (PKF) on March 7, 2025, in Jakarta, focusing on the theme “Overview of the UN Critical Energy Transition Mineral (CETM) Panel and Related EU Regulations.” The PKF is a regular discussion and knowledge-sharing platform organized by the PWYP Indonesia coalition, aimed at enhancing understanding and capacity while fostering public discourse on issues, topics, and policies in the natural resources sector. This edition featured Muhammad Dwiki Mahendra, an International Student Intern at PWYP Indonesia and a master’s student in Peace and Conflict Studies at Universität Magdeburg, as the discussion facilitator.

Dwiki provided an overview of the United Nations (UN) Critical Energy Transition Minerals (CETM) Panel and two related European Union regulations: the EU Critical Raw Materials Act (CRMA) and the EU New Battery Regulation. He began by explaining how critical minerals are defined and why the issue has gained significant importance. According to Dwiki, the commitment to achieving carbon neutrality by 2050 (Net Zero by 2050) marked the starting point for intensified narratives and efforts toward energy transition. This transition has driven an increased demand, particularly from Western countries, for critical mineral supplies. This context also explains why critical and strategic minerals were initially prioritized by Western countries and regions like the European Union. The focus on these minerals subsequently led to global initiatives such as the UN CETM Panel and legal frameworks like the EU CRMA.

The UN CETM Panel was initiated at COP 28 in December 2023 and officially launched in April 2024. Comprising 24 government representatives, including Indonesia, and 14 non-state actors from various regions, the panel is divided into four working groups focusing on distinct issues: 1) Benefit sharing, local value addition, and economic diversification; 2) Transparent and fair trade and investments; 3) Sustainable, responsible, and just value chains; and 4) Mineral value chain stability and resilience. The panel produced 7 Guiding Principles and 5 Actionable Recommendations.

Dwiki then compared the UN CETM Panel with EU regulations, such as the EU New Battery Regulation and the EU CRMA. Broadly, the EU New Battery Regulation sets mandatory requirements for all batteries entering the EU market (except for military, space, and nuclear purposes). This includes sustainability standards throughout the battery’s lifecycle and recycling process, such as carbon footprint thresholds and due diligence in raw material sourcing. The regulation focuses on managing the supply of raw batteries already in the EU and reducing reliance on virgin raw materials. In contrast, the EU CRMA aims to secure supply chains and access to raw materials for the EU, which can conflict with the goals of the New Battery Regulation. Meanwhile, the UN CETM Panel lacks the capacity to serve as a binding framework to protect producing countries and local communities, as it is non-binding and serves only as a blueprint for countries to adopt into their national policies.

The EU CRMA, with its broader and more complex scope, regulates efforts to enhance supply chain resilience in the region and strengthen international engagement to develop mutually beneficial partnerships with third countries. This includes securing upstream production or access to mineral resource extraction, the initial stage of the supply chain. Consequently, it encourages new mining operations and exploration to meet the EU’s mineral resource needs.

The EU CRMA sets specific targets to be achieved by 2030, including:

  • At least 10% of the EU’s annual consumption from extraction
  • At least 40% of the EU’s annual consumption from processing
  • At least 25% of the EU’s annual consumption from recycling
  • No more than 65% of the EU’s annual consumption from any single third country

Dwiki expressed concerns about the UN CETM Panel and EU CRMA, highlighting potential risks. He emphasized three key points. First, regarding the EU CRMA, he questioned how the EU frames strategic partnerships and free trade agreements (FTAs) as win-win solutions. According to Dwiki, strategic partnerships and FTA mechanisms, such as those currently under negotiation between the EU and Indonesia, maintain asymmetrical dynamics between Global North and Global South countries. He cited FTAs with Chile and Mexico as parallels, noting that these countries lost some autonomy in their import-export policies.

Second, Dwiki highlighted the lack of clarity in defining “value addition.” He stressed the need for a clear definition of value addition that accounts for impacts on communities and the environment. He also emphasized the importance of ensuring that such value benefits local communities.

Lastly, Dwiki pointed out that overconsumption is not extensively addressed in either the UN CETM Panel or the EU CRMA. This is evident in the EU’s consumption of 25-33% of global metal mineral production, despite its population accounting for only about 6% of the world’s total. According to Dwiki, the absence of overconsumption in these documents perpetuates the extractive strategies of Global North countries, which are the root of resource exploitation in the Global South.

During the discussion session, participants raised various questions, including reflective ones about balancing modern development with traditional values to ensure they coexist harmoniously. In this context, the emphasis on communal care and traditional community practices was deemed essential to counter the encroachment of capitalism in local societies.

This PKF highlighted critical issues related to critical minerals and international regulations, particularly those involving the UN CETM Panel and EU CRMA. Dwiki’s presentation provided deep insights into the global dynamics of the energy transition, which increasingly relies on critical mineral supplies, and the associated risks, such as dependency on producing countries, unclear definitions of value addition, and the lack of discussion on overconsumption. The discussion underscored the importance of a more inclusive and equitable approach in formulating global policies on natural resources, taking into account impacts on local communities, the environment, and the need for more balanced international relations. (DM/AN)