International aluminum associations launch action plan for low-carbon economy and fair global markets ahead of G7 meeting

A group formed by The Aluminum Association, the European Aluminum Association, the Aluminum Association of Canada and the Japan Aluminum Association held a virtual meeting with the trade ministers of the Group of 7 (G7). This was to prepare for the meetings to be held in Osaka, Japan, during the month of October.

The report, Aluminum Supply Chain Pathways to Net Zero GHG Emissions and Fair Global Markets: Priority Action Areas, highlights the important role aluminum plays in the transition to a low-carbon economy. The document highlights while setting out ways to decarbonize the sector while addressing market distortions driven by non-market economies such as China.

On the other hand, the document also underlines the need for an increase in global aluminum consumption by 2050. To achieve this goal, a major deployment of clean energy, low-emission technologies and recycling is needed to recover scrap and end-of-life products. “Making the transition to zero net greenhouse gas (GHG) emissions and increasing the supply of responsibly produced aluminum in the United States, Europe, Canada and Japan requires massive new investments in alternative clean energy systems, near-zero GHG emissions production technologies, and near 100% recycling rates for pre-consumer scrap and end-of-life products,” he added.

According to the report, in order to address and respond to the need for a market transition there are four fundamental aspects that must be taken into account:
Electricity decarbonization: Decarbonization of the electricity grid is essential to any effort to move the aluminum sector to net zero emissions. The global industry has shifted in recent decades to build new facilities in locations with a

Production technologies: New production technologies, including inert anode smelting and carbon capture, use and storage (CCUS), can significantly reduce industry emissions in the medium term. Governments should prioritize funding dedicated to research and development (R&D) supported by international collaboration in science and technology to expand these programs.

Material efficiency: While about 75% of all aluminum produced remains in use globally today, opportunities remain to increase aluminum recycling, which is vital for a low-carbon future. The industry supports consumer education, policy incentives, public-private partnerships to increase supply, and accelerated research and development in materials sorting to enable a near 100% aluminum recycling rate.
Market-based incentives: Governments should continue to provide market-based incentives to decarbonize the sector, secure supply chains and ensure a global level playing field. Maintaining and improving trade compliance is essential to this effort. Well-designed carbon border adjustment programs can also play a role. Governments and industry must also work together to protect against supply chain risks driven by the concentration of critical minerals in a few key countries.

Finally, industry associations around the world have written to trade ministers to point out that aluminum is not only a vital source of energy, but also a building block for the circular economy with controlled carbon emissions.

“The aluminum industry is not only an energy-intensive and trade-exposed industrial sector, it is also a critical source of material for clean energy technologies: a low-carbon circular economy requires access to sustainable, secure and resilient aluminum supply chains. On behalf of our member companies and the 1.75 million workers they support directly and indirectly across the United States, Europe, Canada and Japan, we are fully committed to working closely with you and your senior officials in pursuit of our shared interests.” reiterated.