Market participants expect long-term support for aluminium scrap prices in Europe following growing demand for low-carbon aluminium.
According to the
European Union's taxonomy for sustainable activities, which serves as a guide to direct investment for sustainable projects, there are fewer criteria to be met for the manufacturing of secondary aluminium to be considered a sustainable project.
"All aluminium recycling is considered to make a substantial contribution to climate change mitigation because of its association with much lower emissions than primary production," the document states.
In contrast, the EU says direct emissions for primary aluminium production is at or below 1.514 tonnes of carbon per tonne of aluminium produced.
Electricity consumption for electrolysis is at or below 15.29 megawatt hours per tonne. Average carbon intensity of the electricity that is used for primary aluminium production (electrolysis) is at or below 100 grams of CO2 equivalent per Kilowatt hour.
Another draft of the taxonomy...