🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Aluminium sector struggles to adopt common standards to cut emissions

Published 12/08/2020, 10:16 pm
Updated 12/08/2020, 10:18 pm
© Reuters.
RUAL
-
ENPLDR
-

* FACTBOX on green aluminium products: Eric Onstad

LONDON, Aug 12 (Reuters) - The aluminium industry, one of the metals sector's largest emitters of greenhouse gas, is struggling to adopt common standards on greener processing as rivals focus on promoting their own products rather than the wider green market.

Multiple initiatives are seeking to set low-carbon benchmarks as rivals fight for market share in a sector burdened by big surpluses.

Aluminium, which requires huge amounts of power to smelt, is one of the most carbon-intensive metals, emitting an average of 16.5 tonnes of CO2 per tonne of production. In contrast steel processing, while a much bigger polluter overall, emits just 2.3 tonnes per tonne.

Most large aluminium groups have launched products with lower-carbon footprints, mostly using hydro power, but each uses different standards. consultancy the Carbon Trust proposed in June a set of guidelines for labelling aluminium as low-carbon if its production emits 4 tonnes or less of CO2 per tonne of metal, about 20% of global output. the proposals https://prod-drupal-files.storage.googleapis.com/documents/resource/public/The-Case-for-Low-Carbon-Primary-Aluminium-Labelling.pdf have stalled, partly because the research was funded by Russia's EN+ ENPLq.L , which owns aluminium giant Rusal 0486.HK . Other producers are reluctant to adopt proposals funded by a rival. the suggestion that it is being used as part of a campaign to create a benchmark for their products," an industry source said.

The Carbon Trust said that while the report was funded with support from EN+, the contents are its own independent views.

Elsewhere the Aluminium Stewardship Initiative https://aluminium-stewardship.org/about-asi certifies operations as sustainable using criteria including transparency regarding greenhouse gases.

U.S.-based consultancy Harbor Aluminum, which last October launched an green aluminium premium assessment https://www.harboraluminum.com/en/us-midwest-p1020-green-aluminum-spot-premium, plans to launch an informal consultation on standard labelling, its managing director told Reuters.

But Harbor's premium has been stuck at zero since it was launched, he added, as buyers baulk at paying extra for greener material despite pressure to address emissions throughout their supply chains.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Carbon distribution footprint of world primary aluminium smelters

https://tmsnrt.rs/2PNi4h4

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.