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.

The post Carbon Border Mechanism Under Scrutiny: Impacts on Aluminium’s Green Transition appeared first on GlassBalkan.