Plans to close Carbon Border Adjustment Mechanism (CBAM) loopholes cannot be realistically implemented before 2028, the CEO of Hydro said.
Eivind Kallevik told investors last week that the two loopholes - related to scrap and downstream products - could undermine European industry.
The Carbon Border Adjustment Mechanism will place a carbon tax on aluminium and other commodities which enters the European Economic Area (EEA) from next month to account for direct emissions generated during their production.
It is designed to protect European producers against cheaper rivals in countries with less-stringent climate rules and to also prevent European companies from relocating investments abroad.
Mr Kallevik told investors in London: "First of all, the scrap loophole needs to be closed.
"Without that, there is a clear risk of circumvention and an uneven playing field between European recyclers and competitors outside the EEA."
CBAM also does not cover downstream products with a high aluminium content, he said, which, as things stand, could still enter the EEA without the charge.
"The scope needs to be extended to downstream goods to ensure that we don't get carbon leakage simply by shifting into finished products," he said.
Carbon leakage occurs when a company moves its production to another country to avoid climate regulations.
The European Commission is set to publish amendments to CBAM later this month, after reviewing industry feedback. Those changes are expected to address the loopholes.
"Unfortunately, these processes take time and the earliest realistic inclusion of these elements, as we do expect, is 2028," Kallevik said.
