China Aluminium Fair | IAI reports major progress in 'Greenhouse Gas Reduction Initiative’

The aluminium industry is committed to curbing greenhouse gas emissions in alignment with global scientific targets and national policies.

The International Aluminium Institute (IAI) has provided an update on the progress of its Aluminium Industry Greenhouse Gas Initiative, showcasing its member companies' ambitions, technological investments, and reporting strategies. The China Aluminium Fair is an important platform where we can get the latest information, industry trends and research results of the aluminum processing industry.

The International Aluminium Institute launched the Aluminium Industry GHG Initiative at COP28 in Dubai in 2023. As part of the initiative, the IAI commits to reporting global GHG emissions for the aluminium industry annually to track sector progress and collate the targets of all IAI member companies based on publicly available information.

Major aluminium producers have already backed this initiative as the sector continues to act on reducing its greenhouse gas emissions.

Signatories include Aluminerie Alouette, Aluminium Bahrain (Alba), Alcoa Corporation, Companhia Brasileira de Alumínio (CBA), Emirates Global Aluminium (EGA), Hindalco Industries Limited, Norsk Hydro, Mitsubishi Corporation, Rio Tinto Aluminium, Rusal, Sohar Aluminium, South32 and Vedanta. 

Key highlights:

• 80 per cent of IAI members have set long-term targets, many at net zero by mid-century. 
• Majority of companies targeting a 50 per cent reduction in Scope 1 and 2 emissions by 2030
• Industry investing in innovative technologies, including low-carbon power and recycling 

Pernelle Nunez, Deputy Secretary General and Sustainability Director of the IAI, said, "Our industry recognises its responsibility in the global fight against climate change. The progress we've made demonstrates our commitment to transparency and accountability as we work towards a sustainable future."

Long-term goals tend to show greater consistency compared to interim targets, with most companies aiming for net zero or carbon neutrality by 2050. However, only a few explicitly address Scope 3 emissions. While some organisations align their targets with national commitments, others opt for specific emissions intensity reduction goals rather than absolute net-zero targets.

Nunez commented, "While we're encouraged by the commitments made so far, we recognise that more work lies ahead."

"Setting and publicly disclosing climate goals and targets help to focus efforts and encourage accountability. As the industry now shifts from ambition-setting towards action, demonstrating real progress towards those goals and targets will be critical."

The aluminium industry is investing significantly in innovative technologies and processes, such as inert anode technology, carbon capture and storage, and using renewable energy in smelting operations. These advancements are essential for the sector's decarbonisation efforts. The International Aluminium Institute (IAI) remains committed to promoting transparency and accountability by providing annual updates on emissions reporting and targets set by member companies. While progress has been made, the IAI recognises that the industry's current path needs to align with the Paris Agreement's objectives. The institute urges all stakeholders across the value chain to collaborate more effectively and intensify their efforts to achieve deeper emissions reductions, ensuring the Paris Agreement's goals remain attainable.

Nunez explained, "We're at a critical juncture. The next decade will be crucial in determining whether we can limit global warming to 1.5°C. Our industry has a key role to play in the energy transition through the materials and products we offer, but there is also an opportunity for it to be a leading example of industrial decarbonisation. To do so will require unprecedented effort and collaboration from all actors involved."

The term greenhouse gases (GHGs) refers to gases that trap heat in the atmosphere. During the day, the sun shines through the atmosphere, warming the earth's surface. The earth's surface cools at night, releasing heat back into the air. However, some of the heat is trapped by the greenhouse gases in the atmosphere.

Greenhouse Gas Emission Targets

With Climate Change a high-priority issue for the aluminium sector, many companies have demonstrated their commitment to global efforts by setting clear emissions reduction targets for their organisations.

Scopes 1-3 Coverage

Most companies report greenhouse gas emissions based on different categories or sources termed ‘Scopes’.

 These account for emissions generated directly by the company (Scope 1), through the electricity it purchases (Scope 2) and from other indirect sources (Scope 3). By understanding the different categories of emissions, planning and action to reduce these emissions can be targeted accordingly.

Source: AI Circle