European aluminium producers are pressing for a broader EU Carbon Border Adjustment Mechanism (CBAM) as negotiations advance, with the industry seeking tighter exemptions and wider coverage of downstream products.
European Aluminium welcomed the European Parliament’s September 15 vote, according to Aluminium International Today. The parliamentary position supports extending CBAM coverage further along the aluminium value chain and strengthening measures intended to prevent circumvention.
For the aluminium sector, one of the central proposals is to reduce the existing 50-tonne exemption threshold to five tonnes. The industry is also seeking changes to the treatment of aluminium scrap to address differences in resulting carbon-cost treatment.
Aluminium sector targets smaller import threshold
European Aluminium argues that relatively small import volumes can still involve high-value aluminium products that compete directly with European production. The industry’s position on the threshold is therefore based on competitive exposure rather than solely on the overall emissions coverage achieved by the existing exemption.
The distinction is relevant to the separate annual assessment of the current threshold. A threshold can remain within CBAM’s emissions-coverage parameters while aluminium producers continue to argue that it leaves commercially significant imports outside the mechanism.
The proposed reduction to five tonnes has not yet become an applicable CBAM requirement. The European Parliament’s position represents a negotiating position rather than final legislation.
Downstream aluminium products remain under negotiation
The next stage requires negotiations between the European Parliament and EU member states on the final product scope, exemptions, safeguards and implementation timetable.
Until those negotiations produce adopted legislation, businesses must continue to operate under the existing CBAM framework and cannot apply the proposed five-tonne threshold as though it were already in force.
A wider scope could also alter the carbon-cost comparison between importing basic aluminium for processing within Europe and importing a more highly processed product. The commercial effect will depend on the specific downstream goods ultimately included in the negotiated CBAM product list.
The aluminium industry’s focus therefore remains on the detailed legislative text. Broader coverage and stronger anti-circumvention measures would have commercial consequences only once the final rules identify the products, transactions and import flows covered by the amended mechanism.
