AN INDUSTRY "MADE IN EUROPE" ...

Hi there! Welcome to European Aluminium’s newsletter, your window into the world of aluminium as we prepare for the 2024 EU institutional renewal. By shedding light on key industry developments and an in-depth exploration of our top 5 policy priorities for the upcoming policy cycle, our goal is to provide a more comprehensive perspective on how we can ensure a green transition made in Europe.

As a strategic raw material, aluminium plays a crucial role in advancing Europe’s industrial goals. Thanks to its widespread use in clean and digital technologies, as well as aerospace and defence applications, the demand for aluminium is projected to rise 30% by 2040. To satisfy this demand in Europe, we need to promote strategies aimed at enabling our industry to establish new primary aluminium capacities, restore previously curtailed ones, and boost the production of recycled aluminium. The successful implementation of the EU's Critical Raw Materials Act (CRMA), supported by a robust industrial policy and new funding mechanisms, could help secure a strong domestic aluminium value chain.

..through the lenses of the CRMA (Critical Raw Materials Act)

On 18 March, the Council of the European Union adopted the CRMA, which is set to enter into force in April 2024. The CRMA, which includes aluminium in its list of strategic raw materials, provides a legislative framework that paves the way through production benchmarks and illustrates the direction in which the EU’s raw materials sectors need to be moving towards by 2030. Strategic autonomy achieved through robust EU production, coupled with predictability in supply chains, holds the potential to enhance the EU industry and create conditions that could improve investment attractiveness. A successful implementation of this framework is vital both for our industry and our society, so we can meet Europe's demand with sustainable, domestically produced aluminium.

As emphasised by our Director of Circular Economy & Raw Materials, George Karkampasis , achieving this objective also requires a robust industrial agenda focused on securing Europe's raw materials supply chains and enhancing their competitiveness in global markets. Discover how delivering an effective industrial strategy aligns with boosting a green transition "made in Europe" ??

FINANCIAL AND STRATEGIC OPPORTUNITIES

With the CRMA coming into force, what will be of major importance is setting new funding mechanisms in motion, strengthening existing ones, and attracting private investments in Europe.

In our study, "Net-Zero by 2050: Science-based Decarbonisation Pathways for the European Aluminium Industry ", we chart paths for reducing emissions in the aluminium production process and, at the same time, fostering sustainable growth. The study uncovered that between 2021 and 2050, at least €33 billion will be needed for deploying decarbonisation technologies throughout all value chain segments and aligning with the 1.5°C scenario by 2050.

That’s why effective policy and financial support for scaling and accelerating the clean technologies that can be successfully used in our sector will be essential. These include R&D (Research and Development) grants that focus on creating low-carbon technologies and green bonds for infrastructure or contracts for difference (CfDs) schemes focused on breakthrough technologies like building and low-carbon smelters. Simplifying the permitting process for renewable energy development or setting up Member State/European Investment Bank financial guarantees for long-term PPAs (Power Purchasing Agreements), are also necessary.

Finally, to ensure the competitiveness and sustainability of European industries, we call on policymakers to create a European Sovereignty Fund. This fund will support industrial competitiveness and decarbonisation efforts, alongside establishing a lending platform for strategic raw materials within the European Investment Bank.

For the European aluminium industry to progress in reaching its decarbonisation goals, it will need more funding!

Find out more in our executive summary of the study here or read the full study here .

JOINING FORCES FOR AN INDUSTRIAL DEAL

It’s been almost a month since the launch of the the Antwerp Declaration, and it has already gathered over 800 signatures from 20 sectors, 571 companies, and 189 associations! To recap, the Antwerp Declaration for a European Industrial Deal outlines 10 actions to elevate Europe as a global leader in sustainable industry. It emphasises the need for clear, predictable industrial policies, leveraging the EU Single Market, enacting laws to foster investment, and making industries more resilient and competitive. The overarching aim is to revitalise Europe's industrial landscape for a stronger, more sustainable future.

We wholeheartedly endorse the Antwerp Declaration. Our industry, like many others, grapples with soaring energy prices and an increasingly unlevel global playing field. The European aluminium industry needs an established and clear business case for investments, a unified European approach to foster innovation and growth, and accelerated efforts towards achieving climate neutrality.

We invite you to join and share your support - www.Antwerp-Declaration.eu .

GET INVOLVED: JOIN THE CONVERSATION

Jump into the conversation and drop your thoughts on our manifesto and policy goals. Your insights and feedback are needed as we work towards a stronger, more resilient aluminium industry in Europe. Connect with us on LinkedIn , X and our website and stay updated on the latest developments! ??

?? Get in touch with us ? [email protected]

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