The International Aluminium Institute (IAI) reported on the progress of its Aluminium Industry Greenhouse Gas Initiative, which was launched at COP28 in December 2023. The initiative tracks and publicly reports the greenhouse gas reduction ambitions and progress of IAI member companies, encouraging further steps in the sector’s efforts to address climate change.
The initiative is backed by major aluminum producers, including Aluminerie Alouette, Aluminium Bahrain (Alba), Alcoa, 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.
“Our industry recognizes its responsibility in the global fight against climate change,” said Pernelle Nunez, deputy secretary general and sustainability director of the IAI. “The progress we’ve made demonstrates our commitment to transparency and accountability as we work towards a sustainable future.”
The initiative has revealed encouraging trends in emissions reduction targets of IAI members. Interim targets range from 10% to 50% reduction in emissions or emissions intensity, reflecting variance in company starting points. The majority of companies are targeting 50% reduction in Scope 1 and 2 emissions by 2030. Half of the companies explicitly apply net zero targets to Scope 1 and 2 emissions, with a small number including Scope 3. Some member companies have set emissions intensity targets alongside or instead of absolute targets, and there is variation in how targets are structured across different companies.
Compared to interim targets, long-term goals show more consistency, with 80% of IAI members aiming for net zero or neutrality by 2050, though only a few explicitly mention Scope 3 emissions. Some companies have aligned their targets with national commitments or set specific emissions intensity reduction goals instead of absolute net-zero targets.
“While we’re encouraged by the commitments made so far, we recognize that more work lies ahead,” Nunez commented. “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 aluminum industry is actively investing in new technologies and processes, including inert anode technology, carbon capture and storage, and renewable energy sources for aluminum smelting. These innovations are crucial for achieving the sector’s decarbonization goals.
The IAI noted that it will continue to provide annual updates on member companies’ emissions reporting and targets, fostering transparency and accountability. Despite recent progress, the IAI acknowledges that the industry’s current trajectory is not aligned with the Paris Agreement’s goals and encourages actors across the value chain to work more closely towards deeper emissions reductions to keep the Paris Agreement goals in reach.
“We’re at a critical juncture,” explained Nunez. “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 decarbonization. To do so will require unprecedented effort and collaboration from all actors involved.”