COP31 and Critical Raw Materials: Why Is Raw Material Security Important for Sustainable Industry?

The global industrial transition is not only about energy sources and production technologies. It also raises an increasingly important question: how are the raw materials needed for these systems sourced, managed and made available?

Materials used in renewable-energy systems, transport infrastructure, industrial facilities and digital technologies are among the building blocks of sustainable economic development. Yet the continuity of industrial production depends on more than the physical availability of raw materials. Supply-chain reliability, the geographical concentration of resources, price volatility, energy costs and environmental requirements can all affect raw material management.

COP31 takes place in Antalya, Türkiye, from 9 to 20 November 2026. In this context, raw material security is an important consideration for the deployment of low-carbon technologies and the long-term resilience of industrial production.

For the iron and steel sector, raw material management includes the sourcing of iron ore, scrap, alloying elements and other production inputs in line with technical requirements. The availability and quality of these inputs can affect the feasibility of different production technologies.
 

What Are Critical Raw Materials?

Critical raw materials are materials that have high economic importance for a particular economy or industrial system and are considered to carry a supply risk.

A material is not classified as critical only because it is rare in nature. Other factors may include the concentration of supply in a limited number of countries, restricted production or processing capacity, the availability of substitutes and the material’s economic importance.

Critical raw material lists can therefore differ according to the priorities of each country or economic region. The European Union, for example, classifies critical raw materials according to defined assessment criteria.

However, these classifications should not be assumed to be the same for every country or industry. The term “critical raw materials” should not be used as a general label for all inputs needed by industry.
 

What Is Raw Material Security?

Raw material security refers to the ability to maintain access to the inputs required for industrial production in the appropriate quality, quantity, timing and conditions.

This approach does not focus solely on whether a material is physically available. Supply-chain resilience, logistics infrastructure, production capacity and trade conditions can also affect raw material security.

For example, the fact that a raw material is available globally in sufficient quantities does not mean that a company can access it easily in all circumstances. Transport costs, trade restrictions or production disruptions in certain regions can affect supply processes.

For this reason, raw material security is an important component of long-term industrial planning.
 

What Is the Relationship Between COP31 and Raw Material Security?

COP31 is an international climate conference held under the United Nations Framework Convention on Climate Change.

Meeting climate goals may require major technological transformations in energy systems and industrial production. Some of the technologies used in this transformation can influence demand for particular minerals and materials.

For example, expanding electricity grids, building renewable-energy infrastructure and scaling energy-storage systems may require different raw materials. This creates an indirect but important relationship between climate goals and raw material supply.

Raw material security should not be interpreted as a confirmed standalone negotiation topic of COP31. The connection arises from the material needs of the industrial and energy transition required to implement climate goals.
 

How Does the Energy Transition Affect Raw Material Demand?

The energy transition involves changes in technologies used to generate, transmit, store and consume energy.

Different technologies require different materials and minerals. Developing electricity transmission and distribution infrastructure, for example, can influence demand for specific conductive and structural materials.

Renewable-energy facilities also require a range of raw materials for supporting structures, equipment and connection components.

However, the energy transition will not necessarily increase demand for every raw material at the same rate. Demand patterns depend on technology choices, production scale, material efficiency and recycling opportunities.

For this reason, raw material requirements should be assessed by technology and application rather than through broad assumptions.
 

Why Is Raw Material Security Important for the Steel Industry?

The raw materials used in iron and steel production vary depending on the selected production method and the required product properties.

Iron ore, scrap, selected alloying elements and auxiliary inputs can play important roles in different production processes. Raw material quality can affect production efficiency and the characteristics of the final product.

For certain production technologies, access to inputs with suitable technical properties can be important for process performance. In scrap-based production, the composition and purity of the material can affect the ability to achieve the required steel quality.

Raw material security in the iron and steel sector is therefore not only about supply volumes. Technical suitability, traceability, quality and continuity of supply must also be assessed.
 

Does Low-Carbon Steel Production Change Raw Material Requirements?

Low-carbon steel production can change how certain raw materials are used and what quality requirements they must meet.

Different steelmaking technologies have different energy and material input requirements. In some direct-reduction applications, for example, iron ore inputs may need to meet defined technical specifications.

In scrap-based production, access to suitable-quality scrap and the management of material quality are particularly important.

When assessing low-carbon production technologies, it is not enough to focus only on energy sources. Raw material availability, technical suitability and supply conditions must also be considered. A particular production technology should not be assumed to provide the same raw material advantage for every facility.
 

What Risks Exist in Raw Material Supply Chains?

Industrial raw material supply chains can face economic, environmental and operational risks.
 

These may include:

• The concentration of production or processing in limited regions
• Logistics disruptions
• Price volatility
• Changes in trade conditions
• Climate-related physical risks, such as extreme weather events
• Quality inconsistencies and supplier-performance risks

Climate change can also affect production and transport infrastructure. Extreme weather events may cause temporary disruption at certain production facilities or along logistics routes.

The level of risk is not the same for every raw material. Supplier diversity, inventory management and alternative sourcing options can influence a company’s exposure.
 

What Is Supply Chain Resilience?

Supply chain resilience refers to the ability of sourcing and logistics processes to adapt to potential disruptions and support operational continuity.

It does not mean eliminating every risk. Instead, it involves identifying risks, managing their effects and developing appropriate response capacity.

Assessing supply sources, identifying critical inputs and monitoring logistics processes can support resilience efforts. However, diversifying suppliers is not always the lowest-cost or most suitable solution. Quality requirements, transport conditions and commercial relationships should be evaluated together.

A resilient supply chain requires balanced decisions between cost, quality and continuity.
 

What Is Responsible Raw Material Sourcing?

Responsible raw material sourcing is an approach that aims to assess relevant environmental, social and governance risks during the procurement of raw materials.

This may include evaluating supplier practices, environmental performance, occupational health and safety conditions and other relevant factors.

Responsible sourcing is not limited to requesting information from suppliers. The reliability of collected data and the development of appropriate processes for identified risks are also important.

Not every supply chain has the same level of traceability. Responsible sourcing should therefore be treated as a risk-based management approach that is continuously improved.
 

Why Is Raw Material Traceability Important?

Raw material traceability refers to the ability to track information about the origin of an input and its supply process within a defined scope.

Traceability can support quality management and supply-chain risk assessment. Tracking technical properties and procurement records of a production input can support production planning. Similarly, information about material production and transport can be used in environmental performance assessments.

However, the traceability of a material does not automatically mean that it is environmentally or socially sustainable. Traceability is part of the information infrastructure that enables these assessments.
 

Does Local and Regional Sourcing Improve Raw Material Security?

Local and regional sourcing may help manage logistics processes and shorten lead times in some cases.

However, local sourcing is not always lower-cost or environmentally preferable. Raw material quality, production methods, energy sources and transport conditions can affect the outcome.

Overdependence on a single region can also create different supply risks. Local and international sourcing options should therefore be assessed through multiple criteria rather than a single measure.

The main objective is to establish reliable and sustainable supply structures that meet the technical requirements of production.
 

What Is Material Efficiency?

Material efficiency refers to the effective management of the amount of material used and production losses associated with achieving a defined output.

Reducing material losses in production processes can improve resource use. Under certain conditions, it may also help reduce production costs and environmental impacts.

Material efficiency does not simply mean using less material. It also requires meeting final-product quality requirements and maintaining reliable production performance.
 

How Does Recycling Support Raw Material Security?

Recycling can help manage primary raw material demand by returning certain materials to production processes.

In the iron and steel industry, scrap is an important input for different production methods. However, the contribution of recycling to raw material security depends on the availability of suitable materials in sufficient quantities and at the required quality.

The chemical composition and purity of scrap can be important for producing certain steel products. Recycling processes can also involve energy consumption and environmental impacts.

Recycling is an important tool for raw material security, but it does not eliminate all supply risks on its own.
 

How Does Digitalisation Support Raw Material Management?

Digital technologies can help companies assess data used in raw material sourcing and inventory management more systematically.

The combined analysis of procurement records, quality data, production plans and logistics information can support decision-making processes.

For example, monitoring stock levels of different material inputs can provide a clearer data foundation for production planning. Regular assessment of supplier-performance information can also help identify certain risks earlier.

Digitalisation does not mean that supply-chain risks disappear automatically. Data quality, system reliability and appropriate management processes remain essential.
 

COP31 and the Future of Raw Material Security in Sustainable Industry

The transformation of energy and industrial systems in line with global climate goals is bringing the strategic importance of raw materials into sharper focus.

The deployment of low-carbon technologies depends not only on developing new production methods, but also on sourcing the inputs needed by these methods under appropriate conditions.

For the iron and steel sector, raw material security is linked to quality, continuity of supply, material efficiency and long-term production planning. Supply-chain resilience, responsible sourcing, traceability and suitable recycling opportunities are all important parts of this process.

There is no single solution that applies to all industries. Different strategies are needed depending on the raw material, production technology and regional conditions.

In the COP31 context, raw material security is an important supporting element of the industrial and energy transition required to implement climate goals. The goal for sustainable industry is not merely to secure access to essential raw materials, but to manage those resources reliably, efficiently and responsibly.
 

COP31 Critical Raw Materials: Frequently Asked Questions

COP31 critical raw materials discussions highlight how the implementation of climate goals can affect material needs across energy and industrial technologies. Below are frequently asked questions about raw material security, sustainable supply chains and resource management in the steel sector.
 

What are critical raw materials?

Critical raw materials are materials that have high economic importance for a specific economy or industrial system and are considered to carry a supply risk.
 

What is raw material security?

Raw material security is the ability to maintain access to production inputs in the appropriate quality, quantity, timing and conditions.
 

What is the relationship between COP31 and raw material security?

Implementing climate goals may require investment in new energy and industrial technologies. Secure access to the materials needed by these technologies is an important part of the sustainable transition.
 

Why is raw material security important for the steel industry?

The quality, availability and continuity of supply for iron ore, scrap, alloying elements and other inputs can affect the technical and economic performance of steel production.
 

Does low-carbon steel production change raw material requirements?

Yes. Different low-carbon production technologies may create different quality, quantity and sourcing requirements for particular raw materials.
 

Does recycling contribute to raw material security?

Recycling can help manage primary raw material demand by returning suitable materials to production. Its contribution depends on material quality, quantity and availability.
 

What is responsible raw material sourcing?

Responsible raw material sourcing is an approach that assesses relevant environmental, social and governance risks in the procurement process.
 

Why is raw material traceability important?

Traceability supports quality management, production planning and supply-chain risk assessment by making information about a material’s origin and sourcing process available.
 

Sources and Further Reading

• UNFCCC — COP process, Paris Agreement and international climate goals
• International Energy Agency (IEA) — Critical minerals, energy-transition technologies and supply chains
• European Commission — Critical Raw Materials Act
• OECD — Responsible supply chains and corporate due diligence
• World Steel Association — Steel production, scrap use and resource management
• United Nations Environment Programme (UNEP) — Resource efficiency and sustainable resource management