Position Paper: CBAM - An Ineffective Carbon Leakage Protection Measure for Aluminium in Need of Urgent Reform

Position Paper: CBAM – An Ineffective Carbon Leakage Protection Measure for Aluminium in Need of Urgent Reform

16 Apr 2025

CBAM presents significant challenges for the European aluminium sector, an electro-intensive, price-taking industry in highly competitive global markets, with over 50% of demand met through imports. Under the current CBAM design, non-European producers will benefit from various options to reduce their border costs. Despite planned improvements, the European aluminium industry remains convinced that CBAM will increase, rather than prevent, carbon leakage.

Press Release: New Study on CBAM Impact on Alumina & Scrap Markets Confirms CBAM Design Flaws

A new third-party study by Ramboll Management Consulting, commissioned by European Aluminium, warns that the current CBAM design could accelerate carbon leakage in the aluminium sector. The study analyses the mechanism’s impact on alumina and aluminium scrap markets—two key materials currently excluded from CBAM—amid the Commission’s review to expand its scope and tackle circumvention. The findings align with concerns raised by several MEPs calling for a pause in CBAM implementation for aluminium until critical issues are addressed.

21 May 2025

Joint Statement: Improve the Reuse and High-Quality Recycling of Materials and Components from End-of-Life Vehicles

In light of the European Commission’s July 2023 proposal to revise and merge key vehicle and waste directives, the signatories of this joint statement call on co-legislators to better align the new Regulation on End-of-Life Vehicles with the Waste Hierarchy. Strengthening reuse and high-quality recycling is essential to reduce the environmental impact of the automotive sector, boost the circular economy, and increase the availability of secondary raw materials—supporting the EU’s strategic autonomy and sustainability goals.

29 Apr 2025

Position Paper: European Aluminium’s Response to the Commission’s CBAM Simplification Proposal

European Aluminium highlights key concerns regarding the Commission’s CBAM simplification proposal. While simplification is needed to improve workability, it must not undermine the competitiveness of European aluminium. CBAM remains an ineffective carbon leakage measure for aluminium, and its current design poses significant challenges for the industry.

25 Apr 2025