European Aluminium welcomes the progress reflected in the latest draft Council General Approach on the CBAM Review. However, the mechanism remains not fit for purpose to effectively prevent carbon leakage in the aluminium sector. Ahead of the adoption of the General Approach, this letter highlights a number of key concerns that continue to undermine CBAM’s effectiveness and competitiveness objectives, several of which have already been partially addressed by the European Parliament.

Aluminium is a strategic material for Europe’s competitiveness, security, defence, decarbonisation and technological transitions. Meeting the EU’s energy transition objectives will require a significant increase in aluminium demand, making access to affordable, low-carbon electricity a critical prerequisite for the sector’s growth and electrification. This paper outlines four key measures for the EU Electrification Action Plan and forthcoming legislation on grid charges, aimed at delivering internationally competitive electricity costs while supporting the EU’s energy security, affordability and sustainability objectives.

The aluminium associations of the United States, Europe, Canada and Japan welcome the OECD’s release of the 2026 MAGIC database on industrial subsidies. The data confirm that industrial subsidies have continued to increase globally, with China remaining by far the largest provider of support and aluminium among the most heavily subsidised sectors. The findings reinforce longstanding concerns about market distortions and underscore the need for coordinated action to strengthen secure and resilient regional aluminium supply chains. The associations remain committed to working with governments and international organisations to support a level playing field and long-term industrial competitiveness.