European Aluminium welcomes the Commission’s proposal to extend CBAM to downstream aluminium products and acknowledges the Commission’s efforts to improve the mechanism. However, serious flaws remain, and without rapid action to address circumvention, scrap and exports, CBAM risks increasing rather than reducing carbon leakage.

The European aluminium, ceramic, ferro-alloys and steel industries express deep concern about the potential impact of the EU-India Free Trade Agreement if a sector-specific approach is not adopted and the distinct challenges of our sectors are not fully considered. The signatories call on policymakers to safeguard a fair level playing field, uphold the integrity of EU trade and climate policies, and avoid concluding any agreement that could undermine Europe’s strategic industrial base.

European primary aluminium production has a carbon footprint nearly 60% lower than the global average, largely due to the increasing use of low-carbon electricity in smelters. As one of the most electro-intensive industrial processes—where electricity represents 30–45% of total production costs—primary aluminium is disproportionately exposed to Europe’s high energy prices. Industrial gas and electricity prices in Europe are currently two to four times higher than in the US and China, driven largely by regulatory charges and system costs. This is why the Electrification Action Plan must prioritise delivering globally cost-competitive, low-carbon electricity for fully electrified processes like primary aluminium, enabling the sector to continue decarbonising while paving the way for broader industrial electrification in the future.