Policy & RegulationEUROPEAN ALUMINIUM: sustainable industrial recovery plan
Summary
2019 data show primary production in Europe is flat, despite a growing demand for aluminium products. This is due to tensions on the aluminium supply chain caused by trade issues at global level and high energy prices. There are 15 smelters in the EU, located in ten countries: France, Germany, Greece, The Netherlands, Spain, Romania, Slovakia, Slovenia. Total CO2emission reductions will come from increased recycling and a 70% decarbonisation in the primary sector. The association also published its I+ Manifesto, its call to action for EU leaders to set the right framework conditions for the industry. It builds on the conclusions of its Vision 2050, European Aluminium’s contribution to the mid-century strategy for a low carbon economy. In April, it also provided a letter to EU leaders from the association and its CEOs to overcome the extraordinary challenges the COVID-19 pandemic. to overcome the challenges of the global carbon economy.
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EUROPEAN ALUMINIUM: sustainable industrial recovery plan
EUROPEAN ALUMINIUM provides a set of recommendations for a sustainable industrial recovery plan
The aluminium industry has traditionally been considered strategic in Europe, however, 2019 data show that primary production in Europe is flat, despite a growing demand for aluminium products in a range of strategic applications. This is due to tensions on the aluminium supply chain caused by trade issues at global level and high European energy prices. Serious excess capacity on global markets, strict EU regulations and challenges in accessing aluminium scrap are exerting additional pressures on the industry. For semi-fabricated products, the growth pace of the European flat rolled products demand slowed down, and there was a decrease in the demand for extrusion products.
There are 15 smelters in the EU, located in ten countries: France, Germany, Greece, The Netherlands, Spain, Romania, Slovakia, Slovenia. There are ten smelters in EFTA countries (Norway and Iceland) and one smelter in the United Kingdom. At a global level, China represents about 56 percent of total production. Europe represents about 7 percent of global production, around half of which comes from within the EU.
European Aluminium represents the entire value chain of the aluminium industry in Europe. Its industry is leading the transition to a climate-neutral and circular economy, sitting at the start of long value chains that are essential for European citizens: transport (40%), building and construction (30%) and packaging (20%).
The COVID-19 crisis is having a disruptive impact on the industry’s value chain and members’ daily operations, ranging from plant closures due to the lower demand and government restrictions, to a shortage of workers and liquidity problems. The association provided a range of short and medium-long term recommendations for a sustainable industrial recovery plan.
Economic and financial support to re-start the economy
To recover from the crisis, Europe needs to reduce some of the pressure on economic actors, in particular small and medium-sized companies, both in the short and long-term. It also needs to re-establish confidence and stimulate demand for sustainable products and solutions.
Reinforcing Europe’s strategic autonomy in global aluminium markets
Global competition, especially from China, will ramp-up fiercely in the post-COVID19 world, threatening even more European aluminium producers’ resilience. Maintaining primary and recycled aluminium production is essential for Europe's raw material sovereignty.
A well-functioning single market and a level playing field
In daily business operations, the industry sees that the response to the current crisis is not less Europe, but more Europe, and it starts with our common European market. It is vital to ensure the transportation of essential goods and flow of services across our borders, such as medical, pharmaceutical, food and energy. In this respect, they welcome the European Commission’s initiatives on ‘Green Lanes’ and on the free movement of workers to support the functioning of the Single Market.
A coordinated approach to re-start production under safe conditions
Maintaining the free movement of goods, workers and services under safe conditions should be a cornerstone of the recovery plan.
Final remarks
European Aluminium admits that the aluminium industry is at a crossroad, facing considerable challenges but also tremendous business and societal opportunities. Its Vision 2050 shows potential to decarbonise its production processes along the whole value chain. Vision 2050 is European Aluminium’s contribution to the debate, setting out different scenarios how the sector can contribute to the EU mid-century strategy and outlines the conditions necessary for the sector to realise its full potential for decarbonisation. Total CO2emission reductions will come from increased recycling and a 70% decarbonisation in the primary sector. The association also published its I+ Manifesto, its call to action for EU leaders to set the right framework conditions for the industry to achieve its full strategic potential. It builds on the conclusions of its Vision 2050, European Aluminium’s contribution to the mid-century strategy for a low carbon economy. In April, European Aluminium also provided a letter to EU leaders from the association and its CEOs in order to overcome the extraordinary challenges the COVID-19 pandemic. The industry sector is undoubtedly ready to be part of the solution to the challenges ahead.
EEIP contributes to the Vision 2050 by being project partner of EU funded project RETROFEED with ASAS representing the aluminium sector. Its main objective is to enable the use of an increasingly variable, bio-based and circular feedstock in process industries through the retrofitting of core equipment and the implementation of an advanced monitoring and control system, and providing support to the plant operators by means of a DSS – Decision Support System – covering the production chain.
