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Why should we care about China’s shiny new plan of greening the aluminium industry by 2027?

EDITED BY : 4MINS READ

Fancy a cuppa and a bit of a 'green muscle' news, then? We have already divulged China’s embargo on ad-lib carbon emissions and instead brought in an overhauling carbon trade system for multiple industries. Now, word on the street (or rather, from Beijing) is that China is embarking on a rather ambitious quest to buff up its aluminium industry (thus proving the agenda of extending carbon trading mechanism in the aluminium value chain) – and make it green, to boot. Now, we all know China is a big player (if not the biggest) in the aluminium game, so this is more than just a spot of housekeeping. It is essentially a potential game-changer.

Why should we care about China’s shiny new plan of greening the aluminium industry by 2027

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The nitty-gritty

So, break down the answer to a common question —what’s the plan and what is the big picture in all of this? Well, the picture now is ten government departments, all huddled around a table (hypothetically, of course), brewing up a scheme to make the aluminium industry more sustainable by 2027. Why?

To increase domestic bauxite resources, aiming for a 3 per cent to 5 per cent boost to reduce reliance on imports.​ Simultaneously, to expand recycled aluminium output, targeting an increase exceeding 15 million tonnes to promote environmental sustainability.​

Here’s the gist of the plan for a better understanding:

  • China wants to rely less on imported bauxite (that’s the stuff aluminium comes from). They’re aiming for a 3-5 per cent increase in domestic bauxite use.
  • Recycling is the name of the game. They’re talking about boosting recycled aluminium output by a whopping 15 million tonnes. That’s a serious commitment to closing the loop.
  • By 2025, the carbon trading market will include the aluminium sector. Basically, firms will need to buy credits to cover their emissions, incentivising them to clean up their act.
  • They’re pushing for energy efficiency and carbon reduction in aluminium production through technological upgrades. Less energy used, fewer emissions

Why should we care?

Now, you might be thinking, ‘Why choose aluminium of all?’ But before you start digging about the ferrous metal’s role in the game, hold on a minute. Remember, this isn’t just about making our metal in question a more eco-friendly one. It is also about China flexing its green muscles on a global scale.

The move towards sustainability isn’t just some airy-fairy ideal; it’s about future-proofing the industry. By focusing on resource efficiency, recycling, and emission controls, China aims to ensure its aluminium industry can thrive amidst growing environmental concerns.

Aluminium is a major component in the construction, automotive, packaging, electrical-electronics, maritime and other sectors.

Consecutively, the plan aims to enhance foreign trade cooperation. It called for active response to trade frictions and promotion of high-value exports of advanced aluminium-based new materials and products, according to the plan published on the MIIT’s website on Friday.

The plan came as global demand for aluminium rose, and earlier this month, the US government imposed 25 percent tariffs on steel and aluminium imports from all countries.

According to a report by the International Aluminium Institute, the aluminium sector will need to produce an additional 33.3 metric tons to meet surging demand in all industrial sectors - from 86.2 tonnes in 2020 to 119.5 tonnes in 2030. Transportation, construction, packaging and the electrical sectors will drive demand and account for 75 per cent of the total metal required.

What’s next?

It’s still in the early days, of course. The proof will be in the pudding (or, in this case, the processed aluminium). But if China pulls this off, it could set a precedent for other industries and other countries.

The plan also calls for enforcing policies on imports of recycled aluminium raw materials and facilitating the import of high-quality recycled aluminium raw materials that satisfy national benchmarks.

So, there we have it. China’s going green with aluminium, and it could be a rather big deal. Time will tell if they can stick to the plan, but one thing’s for sure — the world will be watching.

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EDITED BY : 4MINS READ
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