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illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below:
🗞️ Driving the news: The London Metal Exchange (LME) has initiated a consultation to require aluminium producers to submit carbon emission data by March 2025
• This step is in line with the upcoming requirements of Europe's Carbon-Border Adjustment Mechanism (CBAM), which will impose carbon costs on certain imports
• Producers will need to provide detailed reports on both direct and indirect emissions associated with aluminium production
🔭 The context: The move is targeted at producers of primary aluminium and its alloys listed under LME contracts
• These producers are to submit Scope 1 (direct emissions from production processes) and Scope 2 (indirect emissions from electricity used in production) emissions data
• The initiative aims to enhance transparency and encourage sustainability in the metal's production chain
🌍 Why it matters for the planet: Aluminium is one of the most energy-intensive metals to produce, and its production in 2022 alone released over 1.1 billion metric tons of carbon dioxide
• By mandating emission disclosures, the LME seeks to foster a transition towards lower-carbon aluminium production, which is critical for reducing the industry’s environmental footprint
⏭️ What's next: Aluminium brands that fail to meet the new reporting standards by the 2025 deadline risk being delisted from the LME
• This policy could lead to significant shifts in the industry, pushing producers towards more sustainable practices and potentially increasing the market for low-carbon aluminium
💬 One quote: "The LME has liaised with its own LME-listed primary aluminium brands to understand the extent of work already being done within the space, and 84% of LME Primary Aluminium brands already publish sustainability reports which include their emissions calculations," said the exchange
📈 One stat: In 2022, the aluminium sector released 1.11 billion metric tons of carbon dioxide
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