Core Viewpoint - The recent announcement by the Ministry of Ecology and Environment regarding the national carbon emissions trading market includes the steel, cement, and aluminum smelting industries, highlighting the need for green electricity investment to decarbonize the aluminum smelting sector, which primarily relies on electricity for carbon emissions [1][2]. Group 1: Decarbonization Challenges - The aluminum smelting industry faces significant challenges in decarbonization, particularly in technology, funding, and returns on investment [3][4]. - The reliance on traditional coal power for electricity in China's aluminum smelting results in an average carbon intensity of approximately 12 tons of CO2 per ton of aluminum, with 75% of emissions stemming from coal power [2][3]. Group 2: Investment Strategies - Aluminum smelting companies should explore partnerships with power companies to introduce social capital and risk mitigation strategies, such as joint ventures to share investment costs and reduce financial leverage [5][6]. - The use of alternative investment tools, like REITs, has been demonstrated by companies like Guodian Investment, which issued REITs to finance green electricity projects for aluminum smelting [6]. Group 3: Risk Mitigation Mechanisms - Long-term Power Purchase Agreements (PPAs) can serve as a risk mitigation tool, allowing green electricity developers to lock in stable prices and reduce market volatility risks [7][8]. - Financial institutions can enhance the feasibility of financing green electricity projects through guarantees and other risk-sharing mechanisms, thereby promoting investment stability [7][9]. Group 4: Collaborative Efforts - The decarbonization of the aluminum smelting industry requires collaboration among aluminum manufacturers, power companies, financial institutions, and government entities to create a favorable investment environment for green electricity [9][10]. - The government should establish a supportive policy framework to enhance the market for green electricity and carbon trading, encouraging greater participation from social capital in green project development [10].