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.

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.

Aluminium is a strategic raw material, and ensuring a stable, high-quality supply of scrap is essential for Europe’s recycling production. In this position paper, European Aluminium highlights the need for policies that enhance scrap collection, sorting, and processing to maximise resource efficiency. We urge the European Commission to implement measures that strengthen Europe’s recycling value chain and secure the long-term availability of aluminium scrap.