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.
- 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?
Castellium: Sustainability Linked Bond