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Protecting the competitiveness of low-carbon and circular industries: the case of Aluminium

26 January 2021 / 13:00 – 14:30

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Protecting the competitiveness of low-carbon and circular industries in Europe: the case of Aluminium Sponsored by European Aluminium

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Opening remarksMaria da Graça CarvalhoMember of the European Parliament

Protecting the competitiveness of low-carbon and circular industries in Europe: the case of Aluminium 26 January 2021

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About the intergroup

Protecting the competitiveness of low-carbon and circular industries in Europe: the case of Aluminium Sponsored by European Aluminium

A forum for discussion on the multifaceted dimensions of long-term and sustainable investments, and of a comprehensive EU industrial policy. More at www.investmentindustryintergroup.com

Bureau Secretariat

Members100+ MEPs

Partners60+ entities that support the Intergroup

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Video statementSimona BonaféMember of the European Parliament

Protecting the competitiveness of low-carbon and circular industries in Europe: the case of Aluminium 26 January 2021

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Statement from MEPsChristophe GrudlerMember of the European Parliament

Protecting the competitiveness of low-carbon and circular industries in Europe: the case of Aluminium 26 January 2021

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Statement from MEPsSusana Solis PérezMember of the European Parliament

Protecting the competitiveness of low-carbon and circular industries in Europe: the case of Aluminium 26 January 2021

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Statement from MEPsAnna-Michelle AsimakopoulouMember of the European Parliament

Protecting the competitiveness of low-carbon and circular industries in Europe: the case of Aluminium 26 January 2021

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PresentationDaniele La PortaSenior Mining Specialist, World Bank Group

Protecting the competitiveness of low-carbon and circular industries in Europe: the case of Aluminium 26 January 2021

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PresentationEmilio BraghiEuropean Aluminium Chairman

Protecting the competitiveness of low-carbon and circular industries in Europe: the case of Aluminium 26 January 2021

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A cluster-driven European Industry

* Source : European Aluminium Statistics

Aluminium industry in Europe: more than 600 plants covering the entire aluminium value chain

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Growing demand in aluminium is driven by low carbon applications

Source: European Aluminium based on CRU Group datasets (2018)

Strong growth rate of aluminium semi-fabricated consumption 2017-2050: +39%

Aluminium ingot demand by 2050

22Source: European Aluminium based on CRU data base

The European demand for aluminium in 2050 will be met by almost equal shares of primary and recycled aluminium

To enhance its strategic autonomy, Europe should preserve its aluminium primary production and further boost its recycling capacity

This can only happen if a set of framework conditions are met

Recycling

Primary imports

European primaryProduction

Today

Primary EU 27

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High exposure to global unfair competition

Footprint in Europe is 3 times lower compared to China

Source: European Aluminium Environmental Profile Report, 2018

OECD report stresses the disruption caused by heavily

subsidised overcapacity in China

Source: European Aluminium

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Europe has lost more than 30% of its primary production capacity since 2008!

Europe has higher electricity prices* vs. main competitors that have no carbon pricing systems in place

Carbon leakage and electricity costs

Anodes15%

Other costs11%

“Indirect” cost of power

PowerAluminaAnodesSalariesOther costs

Power~34%

*Source: CEPS, Jan 2019: Composition and drivers of energy prices and costs in Energy Intensive industries

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To make the required investments, we need a fair market and the right policy conditions:

• More high quality recycling – no more landfilling, separate waste collection, better dismantling

• Incentivise circularity/recycling in Europe:o 50 % of the demand could be

supplied through post-consumer recycling in 2050

o Recycling can contribute to CO2 savings of 46 % per year in 2050

Boosting the circular systems

Source: Novelis

The Ultimate Aim:A Circular Business

Model for Aluminium

Customer Production

Consumer Use

End-of-LifeCollection

Recycling Operations

& Processing

Ingot Casting

Fabrication

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A clear strategy to ensure the availability of climate neutral electricity at globally competitive prices for industrial electricity consumers like Aluminium

Boosting circularity: Supporting Aluminium recycling in Europe. The climate mitigation benefits of aluminium recycling should also be considered in the upcoming revision of the ETS

More public investments for industrial decarbonisation. The EU Taxonomy should reflect the global competitiveness of manufacturing industries & not only focus on the best in class in Europe

3 keys to a sustainable aluminium supply chain

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Video statementPedro LOURTIEDeputy Ambassador, Permanent Representation of Portugal to the EUProtecting the competitiveness of low-carbon and circular industries in Europe: the case of Aluminium 26 January 2021

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PresentationPeter Handley Head of Unit, Energy Intensive Industries & Raw Materials, DG GROW, European CommissionProtecting the competitiveness of low-carbon and circular industries in Europe: the case of Aluminium 26 January 2021

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Panel discussion

Moderated by Frédéric Simon, Editor, Energy & Environment, Euractiv

• Maria da Graça Carvalho, Member of the European Parliament• Christophe Grudler, Member of the European Parliament• Susana Solis Pérez, Member of the European Parliament• Anna-Michelle Asimakopoulou, Member of the European Parliament• Daniele La Porta, Senior Mining Specialist, World Bank Group• Emilio Braghi, European Aluminium Chairman• Peter Handley, Head of Unit – Energy Intensive Industries & Raw Materials, DG GROW

Protecting the competitiveness of low-carbon and circular industries in Europe: the case of Aluminium Sponsored by European Aluminium

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Closing remarksMaria da Graça CarvalhoMember of the European Parliament

Protecting the competitiveness of low-carbon and circular industries in Europe: the case of Aluminium 26 January 2021

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Thank you!

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Protecting the competitiveness of low-carbon and circular industries in Europe: the case of Aluminium

26 January 2021