AICE Expert Insights | Green Aluminum Premium Should Advance in Parallel with Consumer Education to Avoid Solely Bearing Low-Carbon Costs on the Production Side

Key Paths to Building a Green Aluminum Ecosystem

1. Life Cycle Carbon Reduction

Upstream: Promote renewable energy-powered aluminum production (e.g., hydropower aluminum, PV aluminum), improve bauxite mining efficiency, and reduce energy consumption in alumina production.

Midstream: Optimize aluminum production technology (e.g., inert anodes, digital energy efficiency management), and promote the application of carbon capture, utilization, and storage (CCUS).

Downstream: Strengthen the recycling of aluminum products (increase closed-loop recycling rates to 90%+), and design lightweight, recyclable products.

2. Standards and Data Systems

Establish globally unified green aluminum certification standards (e.g., IAI collaborating with multiple parties to define "low-carbon aluminum" and accounting methods); improve carbon emission databases, and promote data transparency across the industry (e.g., IAI's global aluminum industry greenhouse gas accounting tool).

3. Green Finance and Market Mechanisms

Develop carbon trading and green electricity trading markets, and incentivize emission reductions through carbon pricing. Encourage green premiums, guiding consumers to pay reasonable costs for low-carbon aluminum.

Industry Collaboration and Policy Recommendations

1. International Cooperation

Promote the transfer of low-carbon technologies from developed to developing countries, and support energy transition (e.g., green electricity infrastructure investment); establish cross-border green aluminum trade mechanisms to avoid carbon leakage (e.g., the EU's Carbon Border Adjustment Mechanism, CBAM).

2. Policy Drivers

Governments need to set clear emission reduction targets and timetables (e.g., energy consumption limits for aluminum production, green electricity consumption ratios); strengthen public funding support for green aluminum technology R&D (e.g., hydrogen-based aluminum smelting, aluminum scrap sorting technology).

3. Corporate Actions

Top-tier enterprises should lead by committing to carbon neutrality goals (e.g., IAI member companies joining the SBTi Science-Based Targets initiative); achieve supply chain collaborative emission reductions (e.g., prioritizing green aluminum procurement in the automotive and construction industries).

IAI's Role andFuture Directions

1. Core Functions

As the global authoritative platform for the aluminum industry, coordinate industry stakeholders (governments, enterprises, NGOs) to reach consensus.

Publish industry reports (e.g., "Global Aluminum Industry 2050 Carbon Neutrality Roadmap") to provide data support and action guidelines.

2. Key Plans

Promote the sustainability advantages of aluminum (e.g., lightweighting's contribution to emission reductions in the transportation sector).

Advance the circular economy, and increase global aluminum scrap recycling rates (target: 50% of demand met by secondary aluminum by 2050).

Please join us at the AICE 2025 Aluminum Industry Expo hosted by SMM,April 17,at theSuzhou International Expo Centerfor the[AICE 2025 Aluminum Industry Conference - Main Forum], where you will gain in-depth insights from industry leaders!

Master of Science from the London School of Economics, joined the International Aluminum Association in 2007, leading the IAI Environment and Nature Committee to advance the industry's sustainable development agenda. Responsible for the collection, analysis, and reporting of global aluminum industry data to promote transparency and informed decision-making. Collaborates with international standards organizations on product carbon footprint disclosure and life cycle assessment methodologies to evaluate and reduce the environmental impact of aluminum.

The International Aluminum Association (IAI) is the only organization representing the global primary aluminum industry, aiming to promote the sustainable development of the aluminum industry and increase demand for aluminum products by raising awareness of their unique and valuable properties. Founded in 1972, its member companies are engaged in bauxite, alumina, and aluminum production, aluminum recycling or processing, or as joint venture partners in such businesses.

AICE 2025 SMM (20th) Aluminum Industry Conference and Expo will invite government representatives, aluminum industry entrepreneurs, experts, scholars, and industry associations from around the world to engage in in-depth discussions and exchanges on global aluminum market trends, aluminum price forecasts, supply-demand balance, business opportunities, and technical exchanges.

Meanwhile, AICE will also focus on low-carbon economy and environmentally friendly supply chain construction, exploring how to drive the aluminum industry towards cleaner, more efficient, and sustainable development, and jointly address global climate change and environmental challenges.

Time:April 16-18, 2025

Location:Suzhou International Expo Center