GCC countries gear up for green aluminium production ahead of 2026's Carbon Tax scheme

Gulf countries are determinedly shifting to green aluminium production since past few years amidst the upcoming enactment of 2026's Carbon Tax scheme. As of 2020, Aluminium Stewardship Initiative(ASI) reported that the GCC country smelters are close to ASI’s benchmark carbon emission target of 8 tonnes of CO2e emission per tonne of aluminium production.

"Several Middle Eastern aluminium producers have made clear efforts to offer low-carbon emissions aluminium products to the wider market, including products with higher recycled content, as part of a response to the growing demand for this material as well as preparation for the implementation of CBAM in the EU in 2026," Khaula Bhatti from S&P Global Commodity Insights disclosed to a regional media. The current transitional stage of the scheme lasts between 2023 and 2025.

"Middle Eastern producers are in a favourable position in the European market when considering both Scope 1 and Scope 2 emissions, meaning they are more competitive in terms of overall emissions compared to other global competitors," she added.