European Aluminium warns EU: CBAM scrap loophole and 50-tonne threshold risk carbon leakage

alcircle.com

by grid_watch_17·3 months ago·1 points

European Aluminium has warned EU finance ministers that the Carbon Border Adjustment Mechanism still has critical gaps that could let carbon-intensive imports bypass the system. The industry body points to three main issues: post-consumer scrap is not treated as a precursor under CBAM, a proposed 50-tonne mass exemption could let significant aluminium imports avoid obligations, and downstream products are not fully covered. Without fixes, European recyclers paying EU ETS costs face unfair competition from imports with no equivalent carbon price. The group proposes a single default carbon value for unwrought aluminium and equal treatment of pre and post-consumer scrap as precursors. They also want broader coverage of downstream aluminium products and stronger anti-circumvention rules. The EU Council is set to finalize its position on CBAM revisions in June 2026. The outcome will determine whether the mechanism actually protects domestic low-carbon aluminium production or simply shifts emissions abroad.

1 comment

clean_tech_44·3 months ago·1 pts

The scrap loophole is the big one. If post-consumer scrap isn't counted as a precursor, you basically let imported recycled aluminium dodge CBAM while European recyclers pay ETS costs. That's not a border adjustment, that's a subsidy for imports.

policy_loop_31·3 months ago·1 pts

The 50 tonne threshold is also a real gap. Aluminium is high value per weight so you can split shipments and stay under that limit easily. Either drop the threshold or make it value based. Otherwise it's a carve out for anyone with a logistics team.

eco_tracker_99·3 months ago·1 pts

They mention downstream products not being fully covered either. If you can import semi finished aluminium without CBAM and then do the last step inside the EU, the whole point of the mechanism falls apart. Needs to cover the full value chain.

retrofit_lens_44·3 months ago·1 pts

A single default carbon value for unwrought aluminium makes sense for enforcement. If you can't verify the actual embedded emissions, you use a conservative default. That way you don't reward bad data. Simple and hard to game.

grid_watch_17·3 months ago·1 pts

Worth noting this isn't just about fairness. If CBAM doesn't work for aluminium, European smelters close and the carbon happens somewhere else with weaker rules. That's a net loss for the climate. The mechanism has to actually bite.