European aluminium producers are warning that current EU Emissions Trading System (ETS) reforms may drive industrial decline. The sector argues that carbon pricing is increasing operating costs without providing viable technological alternatives for abatement, risking a shift in production to regions with lower environmental standards. Key concerns include the effectiveness of the Carbon Border Adjustment Mechanism (CBAM) and the need for more accurate benchmarks for alumina refining and recycling. The industry is calling for a recalibration of the Linear Reduction Factor and the integration of certified carbon removals to ensure a realistic transition to 2050.
