LME announces plans for its low-carbon aluminum trading platform

SMM: on Thursday, Aug. 13, the London Metal Exchange announced plans to create a spot trading platform for low-carbon aluminum to support sustainable metal production.

The platform is expected to play an increasing role in the green energy transformation, enabling registered producers to voluntarily record carbon-related details of their metals.

Starting with green recycling of aluminum, the platform plans to expand to other areas in the future, such as specialty alloys, and then to other metals as well.

As the most energy-consuming industrial metal, aluminum is crucial to the transition to a low-carbon economy. Most smelters use coal to generate electricity to produce primary aluminum. Some companies use renewable energy and have long called for it to be seen as a quality product.

The exchange is currently soliciting comments on its proposal and is expected to launch a trading system in the first half of 2021, according to reports yesterday.

A document submitted to LME members also included the launch of cash settlement contracts for scrap aluminium produced in the US beverage industry and scrap steel contracts for Taiwan and India. The proposal also mentions the launch of a lithium battery contract.

LME CEO MatthewChamberlain said in an interview that the development of a low-carbon aluminum market platform is crucial for a large number of traders and consumers, such as Apple working directly with green aluminum suppliers.

"We will provide contact channels for metal buyers and sellers with special sustainability characteristics," he said. "

"this online auction-style solution will provide access to. It is available on a voluntary basis to those who are willing to buy and sell low-carbon aluminium, "the exchange said.

The digital register, called LMEpassport, will be used to store carbon-related details about aluminum.

"interested producers or metal owners can enter environmental standards for their brands, certification of industry plans, recycled content, use of carbon offsets, or water or tailings management plans," LME said.

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