European aluminium producers are calling for exclusion from the first phase of the EU’s carbon border adjustment mechanism, claiming the plan will put the industry at a competitive disadvantage to foreign rivals and do little to tackle climate change.
European Aluminium, which represents smelters and manufacturers, said the tax proposal would harm its members and their customers while accelerating so-called carbon leakage, where companies move their operations outside the EU to avoid tough climate regulation. “In view of the many open questions and the significant negative impact of the current CBAM approach . . . aluminium should not be included in the pilot phase,” said Gerd Götz, director-general, European Aluminium.
Greek company Mytilineos said the CBAM would encourage Chinese and Russian “resource shuffling” — where producers redirect their low-carbon production to Europe while selling their less environmentally friendly output in the rest of the world. This would do nothing address the dominance of coal-powered production globally, it said.
To read the full article from Financial Times, please click here.