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    Aluminium CBAM

    Aluminium traders...take control of carbon costs under CBAM

    CFP Energy supports aluminium producers and traders in mitigating CBAM risk and securing low-carbon supply chains.

    CBAM compliance for aluminium

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    Aluminium smelting’s high electricity demand makes it highly exposed to CBAM carbon pricing.

    CFP Energy enables compliance while securing renewable energy pathways for competitive, low-carbon aluminium.

    Work with an award-winning team of carbon trading specialists to get ahead of CBAM, today.

      Don't take the risk...CBAM demands your attention

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      High electricity demand

      Smelting processes are emissions-intensive when reliant on fossil fuels.

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      Green premium barriers


      Low-carbon aluminium faces demand, but production shifts remain costly.

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      Global trade exposure
       
      Aluminium is one of the most CBAM-impacted commodities.

      Managing embedded carbon with clarity

      CBAM Cost Management & Hedging

       

      Leverage CFP Energy’s expertise in CBAM allowance sourcing and hedging strategies aligned with EU ETS pricing, protecting aluminium producers and traders from volatile certificate costs.

       

      Energy Partnerships & Renewables Integration

       

      Secure tailored renewable energy solutions—from PPAs to Guarantees of Origin—that dramatically lower your aluminium smelting carbon footprint and reduce CBAM liabilities. These frameworks enable low-carbon aluminium supply chain credentials essential in the EU.

      Carbon delivery expertise

       

      15+ years supporting clients across compliance markets and renewable fuels.

      Full Compliance Streamlining

       

      Simplify CBAM compliance with end-to-end support—from emissions reporting and data verification to seamless CBAM certificate management—ensuring regulatory clarity and reducing administrative burdens for exporters.

      Request more CBAM information from our aluminium experts.

       

       

      CBAM aluminium FAQs

      Primary aluminium, ingots, and related aluminium products are covered by CBAM. These goods are electricity-intensive, especially in smelting. Importers must report embedded CO₂ emissions during the transitional period and, from 2026, purchase CBAM certificates in line with EU ETS carbon pricing, ensuring equal carbon costs for aluminium trade.
      From 2026, aluminium importers must purchase CBAM certificates to cover reported embedded CO₂ emissions. This follows the reporting-only period (2023–2025). Costs will reflect EU ETS carbon allowance pricing, significantly impacting aluminium produced using fossil fuel-powered grids compared to renewable-sourced, low-carbon aluminium alternatives.
      Aluminium smelting is one of the world’s most electricity-intensive processes. When reliant on fossil fuel grids, emissions are high, driving up CBAM costs. Importers of high-carbon aluminium face heavy certificate obligations, while low-carbon producers gain cost advantages under the Carbon Border Adjustment Mechanism in EU trade.
      Aluminium CBAM emissions include Scope 1 direct emissions from refining and smelting plus Scope 2 indirect emissions from electricity use. Given smelting’s high power demand, electricity source is critical. Aluminium produced with renewable electricity requires fewer CBAM certificates, reducing costs and strengthening competitiveness in EU markets.
      Aluminium produced with renewable energy or from regions with equivalent carbon pricing may offset CBAM costs. Verified documentation is required to apply deductions. This incentivises low-carbon aluminium production through PPAs, Guarantees of Origin, and decarbonised electricity sourcing, ensuring competitive access to European aluminium markets.