The world’s largest producer of low-carbon aluminium encourages alumimium users to make informed buying decisions based on transparency and sustainability
14 May 2020 - En+ Group (LSE: ENPL; MOEX: ENPL for GDRs and ENPG for ordinary shares), the world’s largest producer of low carbon aluminium and leading clean energy generator, has thrown its support behind a new report from the Carbon Trust, calling for the publication to universal standards of the carbon footprint of primary aluminium.
The paper entitled The Case for Low Carbon Primary Aluminium Labelling includes a simple methodology to define the ‘low carbon category ‘as a separate ‘asset a class’ and recommends, dependable, proper labelling, to distinguish Low Carbon aluminium from other types of aluminium which can have a carbon content of over 5x that of leading Low Carbon producers.
As part of the drive to a low carbon economy, numerous international aluminium producers have already launched ‘lower carbon primary aluminium’ products, but they lack transparent communication and a clear and consistent approach to labelling.
The vital importance of carbon transparency has become a key concern of the industry’s clients as well as end consumers. Given the growing opportunities for aluminium to be used as a ‘green material’ for new industrial projects in a post-COVID-19 recovery, clarity and transparency have become urgent issues to resolve. The new Carbon Trust report offers a clear solution and a path forward.
The list of recommendations for calculating the carbon footprint of primary aluminium to carry the lower carbon aluminium ‘label’ suggested by The Carbon Trust includes the following:
- A ‘lower carbon primary aluminium’ label should be defined by a current threshold of 4.5 tCO2 per tonne of aluminium for the process emissions from aluminium electrolysis, anode production and aluminium casting, including full lifecycle emissions associated with fuel combustion and electricity consumption.
- The footprint measurement must follow the International Aluminium Institute (IAI) methodology with a uniform approach to electricity impact accounting.
- The footprinting scope should expand to full cradle-to-gate, with companies signing up to a lower carbon label committed to doing so within two years of receiving the label.
- The aluminium sector as a whole needs to achieve emission reductions over time consistent with the decarbonisation pathways defined by science-based targets aligned to the Paris Agreement goals.
The full Carbon Trust report can be found here
En+ Group has long been an advocate of transparency and disclosure by aluminium producers of the carbon footprint of their metals. Last year the Group launched a campaign for Level 1 carbon emissions to be stated on all warrants for London Metal Exchange traded aluminium as a transformative step for the industry to meet the targets set by the Paris Agreement. En+ Group was also the first in the industry to introduce systematically commercial contracts with a guaranteed carbon footprint and disclosure of carbon footprint for the smelter of origin.
Lord Barker, Executive Chairman of En+ Group, said:
“En+ Group is absolutely certain that only by providing clear and consistent information about carbon content on their products can aluminium producers enable customers to make genuinely informed buying decisions. That is why we warmly welcome The Carbon Trust’s new paper as a timely analysis of how global producers need to act now on carbon transparency, which is a vital part of any industry’s commitment to meaningful carbon reduction.
En+ Group is committed to building a post-COVID-19 recovery that is green, sustainable and resilient. That will require real change in the way we all do business and this insightful work from The Carbon Trust is a great pointer to the urgent first steps that our industry needs to take.”
About the International Aluminium Institute (IAI)
Current International Aluminium Institute membership represents over 60% of global bauxite, alumina and aluminium production. Since its foundation in 1972 (as the International Primary Aluminium Institute), the members of the IAI have been companies engaged in the production of bauxite, alumina, aluminium, the recycling of aluminium, or fabrication of aluminium or as joint venture partners in such.
Through the IAI, the aluminium industry aims to promote a wider understanding of its activities and demonstrate both its responsibility in producing the metal and the potential benefits to be realised through their use in sustainable applications and through recycling.
The IAI developed the three ‘levels’ of disclosure as an alternative to the scopes defined by the Greenhouse Gas Protocol aimed at reducing the workload of data collection and calculation, while maintaining consistency and transparency across the aluminium industry.
The three ‘levels’ are defined as:
- Level 1: Emissions from aluminium electrolysis, aluminium ingot casting, anode/paste production, as well as emissions from electricity generation and heat production
- Level 2: Direct emissions from bauxite mining and alumina refining, plus emissions from electricity and heat production and fuel combustion for these two processes
- Level 3: A complete cradle to gate carbon footprint of aluminium ingots, including all GHG emissions from bauxite mining, alumina production, carbon anode production, aluminium electrolysis and ingot casting processes, raw materials transport, electricity & heat generation and aluminium dross processing. It also includes the production of ancillary materials and fuels required for primary aluminium production