Decarbonise Aluminium Production to Promote Trade: Niti Aayog
Electricity consumption is the dominant source of emissions as coal-based power is mainly used by the industry
Chennai: As the European Union’s Carbon Border Adjustment Mechanism has entered into force, decarbonization of the aluminium industry is crucial in promoting trade growth as well as for net-zero goals. Transitioning from conventional fossil fuels to cleaner fuels and promoting scrap utilization can help achieve this goal, finds Niti Aayog.
With a national average emission intensity of 20 - 21 tCO /t of aluminium, significantly higher than the global average of 15 tCO /t. Production of aluminium is expected to rise from 4 MT in 2023 to 37 MT in 2070. GHG emissions too will increase from 83 million tonnes of CO2 equivalent (MTCO2e) to 376 MTCO2e annually in 2070, under the Business-As-Usual scenario.
The aluminium sector has high electricity consumption, met by coal-based electricity. Hence, reducing its carbon footprint is vital, not only to support India’s net-zero goals but also mitigate export risks from emerging trade regulations like EU’s CBAM.
Electricity consumption is the dominant source of emissions as coal-based power is mainly used by the industry.
Transitioning from conventional fossil fuels to cleaner fuels such as natural gas, hydrogen, or Renewable Energy-based electricity can provide substantial emissions reductions. In particular, electric furnaces powered by RE will eliminate direct emissions.
Integration of RE for powering sorting, melting, and casting operations increases the sustainability of the process. Solar power procurement through open access or captive generation can be done, subject to scaling of RE capacity.
Recycling of aluminium scrap is intrinsically much more sustainable compared to primary production as it uses 95 per cent less energy. In India, the share of recycled aluminium is about 30 per cent.
A National aluminium recycling policy, which lays out the roadmap and targets circular metal usage, can accelerate recycled metal usage along with promoting domestic scrap utilisation and expanding the formal sector to improve the quality and segregation of scrap.
The government should legally mandate Extended Producer Responsibility, targeting aluminium-intensive sectors like automobiles and appliances.
Creation of a scrap exchange portal or empowering a previously existing one for real-time trading will lead to formalisation and efficiency.
Mandating a quota for low-emission aluminium in public projects will boost demand for recycled aluminium, alongside green primary production.
