Protecting the competitiveness of low-carbon and circular ...
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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