New initiative to transparently track progress in greenhouse gas in aluminium industry

International Aluminium Institute (IAI) note announcing their initiative for the aluminium industry on the new greenhouse gas:

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The International Aluminium Institute (IAI) has launched a new initiative that commits to transparently and publicly track ambition and progress in greenhouse gas reduction of all its member companies. This initiative, which is being launched at the United Nations’ Climate Change Conference (COP 28) in Dubai, has already been backed by major aluminium producers as the sector continues to act on reducing its greenhouse gas emissions.

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

Under the new initiative, the IAI is committed to the following:

· Track and report on our member company’s ambition and progress in greenhouse gas emission reductions

· Report total global greenhouse gas emissions of the aluminium industry; on a public and annual basis.

Emissions reduction will require investment in new equipment and technology at company and facility level. This initiative facilitates that action through three components:

1. State a long-term greenhouse gas emission reduction target by 31 December 2024 – preferably net-zero and preferably by 2050 - and a plan to achieve the target;

2. Identify an interim greenhouse gas emission reduction milestone – ideally by 2030 - to ensure early progress can be tracked;

3. Disclose progress annually including all facilities utilizing the “IAI Good Practice for Calculation of Primary Aluminium IAI’s Carbon Footprint Methodology” and the “IAI Guidelines on Transparency – Aluminium Scrap” as the calculation references.

This latest initiative aims to foster ambition across the sector and transparently track progress. It complements a range of continual activities and programmes by the IAI to ensure the industry can contribute to achieving global climate targets.

Satish Pai, Managing Director of Hindalco Industries and Chair, International Aluminium Institute said: “We gladly welcome the initiative to be transparent on GHGs. Hindalco has been a leader in sustainable metal manufacturing for years. Because of its infinite recyclability, aluminium is ideal for circularity – the carbon footprint of recycled metal is just 5% of primary smelting. We are among the global leaders in circularity with our subsidiary Novelis using recycled metal for 61% of its total aluminium usage, over 2.3 million tons last fiscal year. To reduce emissions, we are advancing innovative clean energy solutions in primary smelting – such as renewable hybrid power with pumped hydro storage. Among the first in the aluminium sector, this project is on course to deliver round-the-clock carbon-free power to our smelters, starting with 100MW. Our emission initiatives are a key aspect of our broader sustainability vision, which also includes audacious targets on reducing water and waste and protecting communities and biodiversity.”

IAI Secretary General Miles Prosser said “The aluminium industry is committed to rapidly reducing greenhouse gas emissions and acknowledges that investment and action is required to achieve global goals. The IAI has consistently managed programmes to foster collaboration and action on sustainability and this initiative will drive ambition and action to decarbonise aluminium supply chains.”

At COP28, Hindalco won the Energy Transition Change Maker award for their pioneering renewable energy initiative in aluminium decarbonisation. This ground-breaking project marks the world's first renewable hybrid endeavour supported by pumped hydro storage in the aluminium sector.

Earlier this year, it built on that by announcing Aluminium Forward 2030, a coalition of IAI's 25 production members and 20 downstream and customer companies who are joining forces to transform the aluminium sector. The aim is to accelerate progress towards the global net zero target through close collaboration while ensuring that actions also consider all the other UN Sustainable Development Goals.

In March 2021 the IAI published a report, Aluminium Sector Greenhouse Gas Pathways to 2050, which set out three technology pathways to emission reductions, in line with the Paris Agreement goals. At COP26 IAI published an additional decarbonisation scenario for the aluminium sector in line with limiting global warming to 1.5 degrees Celsius.

Companies with aluminium investments but who do not have operational control may choose to publicly demonstrate their commitment by following the above actions at a whole-of-business level. IAI member companies who are minority shareholders in aluminium businesses can report progress using other calculation references to allow for consistency in their overall reporting.

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