The UK Aluminium Federation (ALFED), representing the entire aluminium supply chain in the UK, has officially submitted a response to the UK Carbon Border Adjustment Mechanism (CBAM) Consultation.
As the leading trade body for the aluminium industry in the UK, ALFED has encouraged its members to provide detailed consultation responses related to specific sector areas before the deadline on Thursday, June 13th.
However, through ALFED Trade Committee discussions, two critical areas of concern were highlighted and deemed pertinent to the entire aluminium supply chain and all members.
Firstly, ALFED has voiced concerns regarding the risk of trade diversion that may arise from the implementation of the EU CBAM without the simultaneous implementation of a UK CBAM. ALFED emphasises the importance of aligning implementation processes to mitigate the potential imbalance in trade flows and safeguard the competitiveness of UK producers.
Secondly, ALFED has addressed the issue of mutual recognition of verification bodies or process methodology between the UK and the EU. ALFED stresses the necessity of ensuring mutual recognition of these systems to avoid duplication of efforts and unnecessary burdens on businesses. The proposal for mutual recognition agreements aims to acknowledge the sufficiency of each other’s systems in verifying emissions from installations producing goods for import.
ALFED urges the UK government to consider these points in the UK CBAM consultation to ensure a fair and effective implementation of CBAM measures that support the competitiveness and sustainability of the UK aluminium industry.
ALFED remains committed to contributing to policy development in this area and looks forward to collaborating with relevant stakeholders going forward.
