Sector Importance for Sustainable Finance

Aluminium a key commodity that will enable the shift to a low carbon economy.

Aluminium is infinitely recyclable, lightweight and very durable hence there really are no substitutes. Overall, this sector represents approximately 3% of global GHG emissions and the key issue is decarbonizing the large amount of electricity that is used in the smelting process.

We believe this is a hard to abate sector but is crucial for transitioning to net zero.

Talking Points:

  • Not all new aluminum demand can be met by recycled product hence decarbonizing new production is key
  • Is using recycled aluminum green or should we classify this as transition?
  • The carbon intensity for aluminum differs greatly across the world. Should we take regional considerations into view when judging the ambitiousness of various targets?
  • Should we focus on designs that reduce the need for aluminium and also focus on light weighting, or…
  • Just focus on decarbonizing the aluminium production process especially the power used in smelting?

Useful links:

Previous Transactions

Castellium: Sustainability Linked Bond

Last modified: December 4, 2021

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