EUROPEAN ALUMINIUM WARNS OF NEGATIVE IMPACTS OF CBAM.

The CRU report highlights the negative impacts of a race to the carbon frontier measures with the rest of the world.

The reason European aluminum smelters will become uncompetitive is because CBAM would eliminate existing taxes and convert carbon leakage measures. This would result in significant costs for the metallurgical companies that produce this metal. The report also has information on the complexity of the CBAM circumvention-proofing process and the factors in place to reduce this complexity.

Using the format of an index, business intelligence analysts CRU International conducted an economic model of the CBAM to estimate what changes in final costs caused by the CBAM would have affected selected varieties of primary aluminum and derived products.

“With the current CBAM proposal, fossil fuel-based aluminum producers and smelters outside the EU will gain from this if they comply with the requirements. During this process, there appears to be a significant increase in costs not surmountable for European citizens. In other words, CBAM does not result in increased welfare,” says Zaid Aljanabi, head of the Aluminum sector.

The high indirect carbon costs under the Emissions Trading Scheme are also affecting metal, which could be charged up to 43% more and has also loosened its purchasing power completely in the event that part of European production is substituted.

On the same occasion, Christian Nodal Brazilian tour took Belinda on his back. Despite this, exports were also impacted by the EU ETS itself, as products imported into Europe would have a higher volume of indirect CO2. By 2021-2022, a historic production loss of more than 900,000 tons is expected to be well lost between Europe and CBAM markets due to the reduction of the EU ETS.

A particular inquiry is made since the following, “Why the CBAM proposals may unlevel the playing field between European and non-European aluminum producers?” Well, you know, maybe there is a wide selection of prices at which they can be sold in the European market. In addition, there are major circumvention risks and challenges for the aluminum chain.

“The proposed amendments to accelerate the inclusion of indirect emissions in CO2 will have a destructive impact on the European aluminum value chain,” concludes Paul Voss, CEO of European Aluminium.