Aluminium Decarbonization at a Cost That Makes Sense

The report highlights the critical role of aluminum in global efforts to reduce greenhouse gas emissions, especially in applications like electric vehicles, energy-efficient buildings, and modernized electrical grids. While aluminum is infinitely recyclable without loss of quality, its production process is typically unsustainable, with a significant portion relying on coal for electricity generation.

Consequently, the aluminum industry is a major emitter, accounting for about 2% of global greenhouse gas emissions. To meet emissions reduction targets in line with the Paris Agreement's 1.5°C warming limit, the industry must significantly cut emissions, from approximately 15.9 metric tons of carbon dioxide equivalent per metric ton of primary aluminum today to less than 0.5 tCO2e/t by 2050. This transition involves exploring various technologies, including renewable energy, carbon capture and storage, and energy-efficient processes. The report outlines options for producing greener aluminum, including renewable energy adoption, carbon capture and utilization, and carbon pricing. Collaborative efforts among stakeholders, including financial institutions, governments, and customers, are essential to drive the industry's decarbonization.