The EU’s Carbon Border Adjustment Mechanism (CBAM) threatens to increase carbon leakage in the aluminium sector, warns a new Ramboll study commissioned by European Aluminium. Loopholes in scrap content verification and plans to add alumina and indirect emissions risk undermining the policy’s goals.
Aluminium’s Key Role in Green Transition
Aluminium is vital for lightweight transport, energy-efficient buildings, and renewables. European producers are investing to cut emissions, but CBAM in its current form may unfairly penalize them while benefiting importers.
Scrap Content Loophole Risks Abuse
Scrap aluminium is assigned zero emissions under CBAM, allowing importers to over-declare scrap content and avoid fees. This could give foreign producers a 3.6–6.5% price advantage over European makers.
Alumina Inclusion Could Raise Costs
Including alumina in CBAM could increase raw material costs by up to 24% by 2034, harming European smelters and downstream industries. Experts recommend delaying its inclusion until a more balanced system is in place.
Indirect Emissions Pose Further Threats
Adding indirect emissions would raise costs and prices, reduce demand, and create unfair competition, as EU producers already face high electricity carbon costs not matched by global rivals.
Call to Pause CBAM Implementation
With over one million European jobs at stake, the aluminium sector urges a pause in CBAM for aluminium until these issues are fixed to protect industry competitiveness and climate goals.
Source: CBAM with additional information added by Glass Balkan
