The global aluminium industry has long been an essential pillar for various sectors, including construction, transportation, packaging, and many others. As the world transitions towards a sustainable future, the demand for aluminium is expected to grow steadily, especially as it plays a crucial role in the energy transition. However, challenges lie ahead – particularly for non-EU based aluminium producers who export to the European Union.
CBAM, or the Carbon Border Adjustment Mechanism, is a new regulation introduced by the EU as part of its ‘Fit for 55’ package. Published in the Official Journal of the European Union on 10 May 2023, CBAM aims to tackle carbon leakage and encourage cleaner industrial production worldwide.