Green Aluminium Can Power Europe's Recovery

As the world struggles with the medical and economic threat of COVID-19 it cannot, however, lower its efforts in dealing with the truly existential threat of Climate Change. The need to rebuild the economy post-virus presents us with an opportunity to choose a low-carbon path to recovery while designing and implementing large-scale economic support, stimulus and recovery packages all over the world to Build Back Better.

En+ Group as a global leader in hydropower generation and aluminium production is strongly committed to leading the ‘hard to abate’ aluminium industry into the future green economy.

On July 1, 2020, En+ Group published its ‘Green Aluminium Vision’, setting out its commitments to lead the industry into the low-carbon economy by developing a new asset class of ‘Green Aluminium’. The vision recommends a separate custom code for low-carbon aluminium.

Social demand for climate action and environmentally friendly products is changing the values of governments and NGOs and the behaviours of businesses. The aluminium industry must strive to decarbonise the production of aluminium, from sustainable mining to ‘low-carbon’ and carbon-free smelting, and to the lowest total carbon footprint for product manufacturing.

The European Union estimates the amount of investment required for its low-carbon transition at almost €500 billion a year, and such transition can be made sustainable if it embraces low carbon materials such as Green Aluminium.

So far Europe continues to rely on too many imported high-carbon metals.  Emission-heavy imports impact EU manufacturers making everything from small electric cars to aeroplanes. However, growing consumer demand for climate-friendly products is sending shockwaves through the supply chain. Why shut down Europe’s coal-fired power plants if the finished goods we buy or manufacture are made of high-carbon, coal-produced aluminium while high quality, low carbon aluminium has come of age and is readily available.

The answer is to eliminate import tariffs for low-carbon primary aluminium, giving Europe a helping hand when it needs it most. This would send a clear signal that the EU means business when it comes to the green transition.
A recent study estimated the total cost of import tariffs on Europe’s downstream industry was as much as €20 billion over the past 20 years. Eliminating tariffs for low-carbon raw aluminium would save industry across Europe tens of millions of euros a year and help the industry reduce the carbon content of its products. The EU aluminium processing industry employs more than 200,000 people across the continent with 75% of primary raw aluminium being imported.

The ‘Green Aluminium Vision’ is a positive and practical low carbon action plan for our industry. It puts transparency at the heart of the debate. Without it, we risk a stimulus package that is unfocused and unproductive for the climate. From using hydropower to produce aluminium, to investing in cutting edge technology to transform an energy intensive process into a carbon-free one, En+ Group has the credibility to lead the way.

The launch of the Green Aluminium Vision coincided with the start of the German Presidency in the European Council. With Germany being a recognized climate leader, we take it as a good sign. The Green Aluminium has a positive role to play as the EU charts its course for the low-carbon economic recovery and clean growth.

En+ Group ‘Green Aluminum Vision’ sets out nine principles that should shape the future of green aluminium:

1.      Determination to reduce emissions across the production process

2.      Low-carbon aluminium branding

3.      Carbon footprint transparency

4.      Circularity

5.      Sustainability labelling

6.      Liberalisation of trade for low-carbon primary aluminium

7.      Elimination of excess capacities to ensure fair and green trade

8.      Facilitation of research and development

9.      Support to a renewed multilateralism

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Rt Hon Lord Barker of Battle PC     

Lord Barker was appointed as the Independent Chairman of the En+ Board of Directors in October 2017, immediately prior to the company’s successful IPO in London.

In February 2019, he was appointed as Executive Chairman of the Board.

Lord Barker was previously a member of the British House of Commons from 2001 to 2015. From 2010 to 2014, Lord Barker served as UK Minister of State for Energy & Climate Change, under Prime Minister David Cameron, becoming the longest serving British energy minister for a generation.

In August 2015, he was made a life Peer and, since October 2015, has been a member of the UK House of Lords.