The UK’s Aluminium Federation (Alfed) is urging policy makers to engage urgently over the introduction of the country’s Carbon Border Adjustment Mechanism (CBAM).
The proposed CBAM, similar to the EU scheme and due to be in place in January, aims to protect the domestic industry from carbon ‘leakage’ while creating a level playing field with imported material. However, Alfed is warning that significant practical questions remain unresolved as the deadline nears.
What does this mean for recyclers?
UK metal processing facilities that sort, shred, or otherwise prepare scrap for export must now calculate and report the emissions associated with these activities. As regulatory pressure increases, businesses need to enquire about scrap metal recycling standards to ensure their materials meet the transparency required for EU trade.
For ferrous metals, the carbon footprint varies significantly based on processing intensity. A facility operating heavy shredding equipment powered by grid electricity will show higher carbon intensity than a less sophisticated sorting yard. Non-ferrous metals, particularly aluminium and copper, face additional scrutiny because of the energy intensive nature of primary production.
Questions still pending
In a briefing paper for Government departments, Alfed backs the CBAM scheme but is calling for greater clarity and time for businesses to prepare.
Key concerns cover:
- default emissions values
- verification and accreditation arrangements
- recognition of carbon costs paid overseas
- sector-specific technical guidance
- CBAM’s impact on the European Trading System
‘Our members understand the rationale behind CBAM and the importance of addressing carbon leakage but businesses need certainty if they are going to prepare properly,’ says Nadine Bloxsome, Alfed chief executive.
‘Experience from the EU has shown just how challenging implementation can become when methodologies, systems and guidance are finalised too close to the point at which businesses are expected to comply.’
Bloxsome adds: ‘Our message to Government is therefore very straightforward: industry needs clarity, practical guidance and sufficient lead time. We want to work constructively with Government to help get this right, but that engagement needs to happen now.’
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