European Aluminium calls on EU institutions to include low-carbon aluminium credits—alongside those for low-carbon steel—within the CO₂ standards for cars regulation. Aluminium and steel are both used in significant volumes in vehicles and are largely substitutable in many applications. Limiting credits to low-carbon steel alone risks creating an uneven playing field between materials and incentivising suboptimal component choices. Including low-carbon aluminium in the scope of the regulation is therefore essential for strategic, technological and sustainability reasons.

The European Commission’s proposed Regulation establishing a temporary decarbonisation fund does not adequately address export exposure to the competitive disadvantages created by CBAM and risks weakening the competitiveness of the European aluminium value chain. To effectively prevent carbon leakage, the fund requires substantial adjustments, including preserving ETS free allocation for exports and compensating for increased raw material costs linked to CBAM’s impact on the Aluminium European Premium Duty-Paid (EDP).

European Aluminium strongly supports keeping indirect emissions out of CBAM. Their inclusion would severely undermine the competitiveness of the European aluminium value chain, from primary smelters to semi-finished producers and remelters, while paradoxically increasing global emissions by shifting production to more carbon-intensive regions. It would also weaken the industry’s capacity to make long-term investments in further decarbonisation.