Why is the Germany-Serbia agreement problematic?

2024-10-20 22:30:00, Kosova & Bota CNA

Is the lithium mining agreement with Serbia more good news for economic development in Germany, or bad news for the environment in Serbia? "Actually, both," says Professor Claudia Kemfert, an economist specializing in energy and environmental protection.

"It is good for Germany to reduce its dependence on China, which currently has a monopoly on the entire lithium production chain. But on the other hand, it is bad for the environment in Serbia, because lithium extraction comes with environmental risks. Activists of the environment rightly point out that there was a moratorium before, that is, the license was withdrawn. This is disturbing," says Kemfert.

Why is the Germany-Serbia agreement problematic?

"Germany must exert influence"

The agreement with Serbia signed by Scholz and Vucic is problematic for two reasons:

"First, because we can't export our environmental problems. And two, we have to be careful who we become dependent on." The expert says that "it is good if we are less dependent on China, but on the other hand, in the case of Serbia, we should also mention problems such as the freedom of the press, or the fact that it does not support sanctions against Russia".

Kemfert believes that it is possible to ensure compliance with environmental standards through the mining and production certification process in Serbia. But also exerting pressure on the Serbian authorities.

"Germany needs to exert influence on Serbia. Whether it will bear fruit is another matter. But it has to be tried, because Germany cannot simply export its environmental problems elsewhere. Otherwise, it will have to mine lithium itself in Germany", adds Kemfert, who also heads the Department for Energy, Transport and Environment at the German Institute for Economic Research (DIW Berlin), and she is also a professor at Leufana University in Lüneburg.

Lithium reserves in Germany less than in Serbia?

She claims that lithium reserves in Germany are not as big as in Serbia and adds another reason why Germany is looking for lithium abroad is:

"Here we have high standards for environmental protection, which in other countries we don't care about like here. This means that many projects do not give results at all or it takes a long time to get permits. There is enough lithium in the world, not there is a shortage, therefore the focus is on the world market, on import".

Why is the Germany-Serbia agreement problematic?

Naive towards Vucic?

When asked if Chancellor Olaf Soltz is naive in relation to Serbian President Aleksandar Vucic, just as former Chancellor Angela Merkel was with Russian President Vladimir Putin, our interlocutor says that Germany is no longer so naive.

"It must be clearly said that Serbia cannot be compared with Russia. It is about benevolent, friendly influence on Serbia to adhere to environmental goals and standards. After all, Serbia wants to join the European Union, that's what that we all want and we must follow that common path"./ DW