The Aluminium Association of Canada, The Aluminium Association, European Aluminium and the Japan Aluminium Association released a joint briefing to Group of 7 (G7) trade ministers ahead of meetings in Osaka, Japan this October. The briefing, Aluminium Supply Chain Pathways to Net Zero GHG Emissions and Fair Global Markets: Priority Action Areas, highlights aluminium’s essential role in the transition to a low carbon economy while laying out pathways to decarbonise the sector while addressing distortions in the marketplace driven by non-market economies like China.
“Global demand is expected to increase up to 80 per cent by 2050; as much aluminium will need to be produced in the next decade as in the last one hundred years,” the report notes. “Making the transition to net zero greenhouse gas (GHG) emissions and increasing the supply of responsibly produced aluminium across the United States, Europe, Canada, and Japan require massive new investments in alternative clean energy systems, near-zero GHG emission production technologies, and near 100 per cent recycling rates for pre-consumer scrap and end-of-life products.”
The briefing lays out four Priority Action Areas to support this needed market transition:
Electricity Decarbonisation: Decarbonising the electric grid is essential to any effort to move the aluminium sector to net zero emissions. In recent decades, the global industry has shifted to build new facilities in locations with access to renewable power, and that trend must continue. The transition will also require significant public investment in new, efficient energy infrastructure.
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 prioritise dedicated research and development (R&D) funding underpinned by international science & technology collaboration to scale up these programs.
Material Efficiency: While around 75 per cent of all aluminium ever produced remains in use globally today, opportunities remain to increase aluminium recycling, which is vital to a low-carbon future. The industry supports consumer education, policy incentives, public-private partnerships to increase supply and accelerated R&D on material sorting to enable a near 100 per cent recycling rate for aluminium.
Market Incentives: Governments must continue to provide market-based incentives to decarbonise the sector, secure supply chains, and ensure a level playing field globally. Continued and enhanced trade enforcement is essential to this effort. Well-designed carbon border adjustment programs also play a role. Governments and industry must also collaborate to guard against supply chain risks driven by the concentration of critical minerals in a few key countries.
In a letter to global trade ministers, the associations note, “The aluminium 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 aluminium supply chains. On behalf of our member companies and the 1.75 million workers they directly and indirectly support across the United States, Europe, Canada, and Japan, we are fully committed to working closely with you and your senior officials to pursue our shared interests.”
Source: https://www.alcircle.com/press-release/international-aluminium-associations-release-action-plan-ahead-of-g7-trade-ministers-meeting-100234
