“European Union’s implementation of a Carbon Border Adjustment Mechanism (CBAM) will have a negative impact on the primary aluminium market”, Wood Mackenzie said
The report, titled “CBAM and aluminium: The devil’s in the detail”, highlights an imminent impact on European producers, leading to increased prices for consumers.
This has been FACE’s constant view since our first communications on CBAM with the EU Commission. FACE estimated that the CBAM will add at least 3,6 billions euros annually of overcost to the EU downstream aluminium sector which already suffers from more than 1 billion euros annual overcost of its raw material because of the maintaining of outdated and absurd import tariffs on raw aluminium in an import-dependent market. We should replace the CBAM by a European super-IRA style instrument, preferring incentive to taxation, and fully liberalise our supplies of low carbon primary aluminium, to support our competitiveness and decarbonisation.
Here the full article by Greentechlead: https://www.greentechlead.com/climate/europes-carbon-border-adjustment-mechanism-to-impact-aluminium-market-reports-wood-mackenzie-46520