Europe’s impossible choice: Which industries should survive the green transition?

illuminem summarizes for you the essential news of the day. Read the full piece on POLITICO or enjoy below:

🗞️ Driving the news: As Europe accelerates its green transition, industries like aluminum face tough choices—adapt or shut down
• A major German aluminum smelter, Rheinwerk, has permanently closed its primary production due to high energy costs but shifted to recycling, a more sustainable alternative
• The European Commission’s upcoming Clean Industrial Deal will aim to support green manufacturing but avoids deciding which industries should survive.

🔭 The context: Russia’s 2022 invasion of Ukraine sent energy prices soaring, worsening an already struggling European manufacturing sector
• Primary aluminum production, highly energy-intensive, has become uncompetitive in Europe compared to China and the U.S. Europe’s policymakers must decide whether to subsidize these industries or rely on imports for key materials like aluminum, steel, and cement

🌍 Why it matters for the planet: The green transition requires industries to slash emissions, and recycling aluminum reduces CO₂ emissions by 95% compared to primary production
• However, Europe cannot yet meet demand with recycled metal alone, raising concerns about supply security
• If primary aluminum production shifts to China, emissions could double, worsening the global climate impact

⏭️ What's next: The EU’s Clean Industrial Deal will propose measures to cut energy costs and stimulate investment but will not dictate which industries should be prioritized
• Aluminum producers argue that without EU support, Europe will become entirely dependent on imports
• Future decisions will determine whether Europe retains control over its critical raw materials or loses key industrial capacities

💬 One quote: “Policies that protect only the climate and don’t future-proof the economy are pointless.” — Volker Backs, Managing Director of Speira (see sustainability performance).

📈 One stat: Recycling aluminum reduces CO₂ emissions from 6.7 tons per ton of primary aluminum to as little as 0.5 tons

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