Against the backdrop of advancing the circular economy and carbon neutrality goals, the European Union has implemented a series of policies targeting recycled aluminum (secondary aluminum) in recent years, with a focus on increasing recycling rates, reducing carbon emissions, and promoting sustainable development. Below are the key points of the latest policies:
Carbon Border Adjustment Mechanism (CBAM)
EU's official documentation of REGULATION (EU) 2023-956, (CBAM) Regulation-establishing a Carbon Border Adjustment Mechanism:
REGULATION (EU) 2023-956, (CBAM) Regulation-establishing a Carbon Border Adjustment Mechanism.pdf
Implementation Timeline:
Starting in 2026, the EU will impose a carbon border tax on imported aluminum products (including recycled aluminum), based on their embedded carbon emissions.
Impact:
CBAM aims to ensure that the carbon cost of imported aluminum aligns with that of EU-produced aluminum, incentivizing low-carbon production. Since recycled aluminum requires only 5% of the energy needed for primary aluminum production, it holds a significant carbon advantage and may gain greater competitiveness in the EU market.
Challenges:
Aluminum producers from high-carbon regions like China (with a carbon intensity of 16-18 tons CO₂/ton of aluminum, compared to the EU's 4-6 tons) will face higher carbon tax costs, potentially driving them to increase recycled aluminum usage to reduce emissions.
Circular Economy Action Plan
Goal:
Through the 'Circular Economy Package', the EU aims to promote aluminum recycling, targeting a 100% recycling rate for aluminum cans by 2030.
Key Measures:
- Require member states to include metals recovered from bottom ash in national recycling statistics and set maximum impurity levels.
- Establish separate recycling and reuse targets for aluminum packaging.
- Encourage reuse and recycling goals for construction and demolition waste.
Progress:
Europe's aluminum recycling rate has reached 76.3%, far exceeding the U.S. rate of 49.8%. Some countries, like Norway, have achieved over 90% can recycling rates through deposit return systems (DRS).
Energy and Resource Efficiency
The EU emphasizes supporting recycled aluminum production by providing affordable low-carbon energy and investing in recycling infrastructure to meet growing aluminum demand.
Policies encourage producers to adopt advanced technologies (e.g., waste heat recovery systems and smart manufacturing) to further reduce energy consumption and emissions in recycled aluminum production.
Trade and Strategic Autonomy
The EU considers aluminum a critical material for energy transition and strategic autonomy, particularly in applications such as electric vehicles, power grids, and renewable energy equipment.
In December 2022, the EU proposed an import ban on certain Russian aluminum products as part of sanctions against Russia, while calling for a more comprehensive framework to ensure supply chain security.
CBAM may be expanded to cover more processed aluminum products to prevent circumvention risks and protect the competitiveness of the EU aluminum industry.