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European Aluminum Industry Gearing up for CBAM
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2025-02-04
The European aluminum industry is gearing up for the implementation of CBAM, which will take effect in 2026. This initiative aims to impose a carbon price on imported aluminum, aligning it with EU-produced goods under the Emissions Trading System. However, industry leaders express concerns that the mechanism could exacerbate existing challenges, including high electricity costs and regulatory pressures that have already led to the closure of approximately 1.18 million metric tons of production capacity since 2021.
Producers are particularly worried about the double-reporting requirements and administrative burdens associated with emissions data collection. They advocate for robust third-party verification to ensure compliance and prevent circumvention of the rules. The CBAM could disadvantage EU smelters operating on low-carbon electricity, as non-EU producers might benefit from lower operational costs. They called for the product scope to be expanded to more aluminum products and other materials. Products outside CBAM scope are at clear risk of carbon leakage.
Stakeholders emphasize the need for a well-designed CBAM that includes indirect emissions in its scope without compromising the competitiveness of European producers. While there are hopes that CBAM could drive innovation in greener technologies, its success hinges on careful implementation and addressing potential loopholes that may lead to carbon leakage.
歐洲鋁業
CBAM
碳價
排放交易系統
第三方驗證機制
碳洩漏
European Aluminum Industry
carbon price
Emissions Trading System
ETS
third-party verification
carbon leakage
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