Link to original statement: https://www.linkedin.com/feed/update/urn:li:activity:6806560103953760256/
European Aluminium (EA), 6 June 2021:
We are particularly concerned by the Commission’s reported intention to include #aluminium in the pilot sectors of the #CBAM. We have repeatedly stated that we do NOT wish to be part of the measure, as we cannot see how it could effectively reduce #CarbonLeakage in our sector, given the proposed removal of free allowances and indirect cost compensation.
A thorough revision of current carbon leakage measures for the entire phase 4 of the ETS was only recently completed, defining a long-term solid regulatory framework for planning and investment in our sector, which must not be compromised.
We are keen to contribute to the EU’s climate ambition and have already demonstrated great achievements so far, particularly in the new digital and green area. However, the Commission also needs to understand that such efforts should not be undermined by external pressure when it comes to carbon leakage and the risk of circumvention or source shifting.
There is no doubt that to address these challenges, a CBAM would have to cover all aluminium products while also being applied alongside the existing carbon leakage measures. We cannot see how this could be possible. Let’s not forget that we have already lost 1/3 of Europe’s aluminium capacity since 2009.