CBAM remains afterthought for European aluminium premiums
The low-carbon production of aluminium has remained in the spotlight during COP26, the United Nation’s global climate change conference now under way in Glasgow, but the EU’s carbon border adjustment mechanism (CBAM) remains an afterthought for the European aluminium market.
CBAM will make EU importers pay for carbon certificates corresponding to the carbon price that would have been paid if the goods had been produced within the trade bloc. But in November 2021, four months after the EU announced it, premiums in Europe have yet to meet the bullish expectations market participants had prior to the announcement.
During a transition period from 2023 to 2025, importers will have to report the emissions embodied in goods brought into the EU but without paying any duties. Only from 2026 will definitive measures be implemented, and importers will then have to declare their carbon emissions and pay the differential to EU produced goods.
During a transition period from 2023 to 2025, importers will have to report the emissions embodied in goods brought into the EU but without paying any duties. Only from 2026 will definitive measures be implemented, and importers will then have to declare their carbon emissions and pay the differential to EU produced goods.
