Reaching zero with renewables: Aluminum industry

Investment Rating - The report does not explicitly provide an investment rating for the aluminium industry. Core Insights - The aluminium industry is projected to increase production by over a third by 2050, leading to rising emissions unless decarbonisation measures are implemented [20][88] - Aluminium production accounted for approximately 1.1 gigatonnes (Gt) of CO2 emissions in 2022, primarily due to reliance on fossil fuels [19][67] - The integration of renewable energy sources such as solar and wind is essential for reducing the carbon footprint of aluminium production [21][22] - The report emphasizes the need for a supportive policy environment to accelerate the transition towards low-carbon aluminium [30][32] Summary by Sections Executive Summary - Aluminium is crucial in various industries but significantly contributes to climate change, with emissions projected to rise without decarbonisation efforts [19][20] - The report outlines the role of renewable energy and other levers to reduce emissions in the aluminium sector [20][28] Introduction - The aluminium market was valued at approximately USD 160 billion in 2022, with over 7 million jobs supported globally [39] - The report discusses the environmental impact of aluminium production, which emitted over 1.1 billion tonnes of CO2 equivalent in 2022 [39][67] Transformation Pillars: Towards Net Zero in the Aluminium Sector - The report identifies three key pillars for decarbonisation: increasing low-carbon electricity sources, eliminating direct emissions, and maximizing recycling [89] - It highlights the importance of integrating renewable energy into smelting processes to significantly reduce emissions [95][102] Recent Progress and Key Actions - Several aluminium producers are already integrating renewables into their operations and participating in research and development initiatives [28][29] - The report calls for collaborative efforts among governments, producers, and other stakeholders to achieve decarbonisation goals [29][30]