The world's leading producer of low carbon aluminium and largest private sector generator of hydropower, EN+ Group, highlighted the response published last week by the London Metal Exchange (LME) towards industry feedback on its sustainability discussion paper that En+ counts do not address the industry's concerns.
En+ believes the LME's announced plans acts for a lost opportunity to drive industry-wide meaningful change as the world looks to 'build back better' from the impact of the global COVID-19 pandemic in 2021.
Lord Barker, Executive Chairman of En+ Group, said: "We warmly welcome this long-overdue first step by the LME into the low carbon age but it doesn't go far enough. London should lead global Green commerce and trading; timid actions don't cut it. So, we will be looking for further steps to make voluntary carbon disclosure mandatory for the LME passport and to create a new derivative contract for Low Carbon Aluminium."
In its official response to the LME's consultation paper issued in September, En+ set embarked core recommendations and exclaimed on the exchange to take a more vital role in guiding the aluminium market towards a low-carbon future.
However, En+ believes the following proceedings are critical to incentivising the decarbonisation of the aluminium industry, which is currently responsible for 2% of global carbon emissions, and where there is a huge disparity between the emissions from the production of low-carbon aluminium (produced with renewable energy) and aluminium produced with coal-fired plants.
En+ called for mandatory carbon content and sustainability-related disclosure by metal producers (not voluntary) and this should be fully integrated with the existing trading system. This would mean that LME Passports, which are attached to warrants traded on the exchange, should include mandatory information about each aluminium product's carbon footprint, whether it is ASI certified and the source of energy used to produce it.
En+ remains purposive in its mission to lead the aluminium industry into the low-carbon economy and looks forward to further engagement with the LME on this area.
Responses
