In a significant shift, China's aluminium exports to the European Union, now subject to the EU's Carbon Border Adjustment Mechanism (CBAM), plummeted by 30% in 2023. This decrease underscores the impact of the EU's efforts to align international trade with its ambitious environmental goals.
The CBAM, introduced in October as part of the EU's broader strategy to combat climate change, aims to level the playing field between domestic industries and foreign producers. The mechanism requires EU importers to report greenhouse gas emissions for certain imports, including steel, cement, and aluminium, which are key to the EU's green transition. Although the actual carbon charges won't be collected until 2026, the reporting requirement has already influenced trading patterns.
China, the leading global producer and exporter of aluminium, has felt the impact of these new regulations. Aluminium products targeted by the CBAM, including structures, plates, sheets, and strips, saw a significant reduction in exports to the EU, totaling 689,000 metric tons last year—a 30% decrease from 2022. This downturn reflects the broader challenges faced by energy-intensive industries in aligning with emerging global environmental standards.
The decline in exports has also led to a 26% drop in the total trade value of these products, amounting to 22.76 billion yuan ($3.16 billion). Germany, France, and Italy emerged as the primary EU destinations for Chinese aluminium, illustrating the varied impact of the CBAM across member states.
The CNIA's report highlights the ongoing adjustments within the global metals market as producers and exporters navigate the complexities of carbon taxation and environmental compliance. As the EU continues to refine its carbon border tariff, the reverberations are likely to extend beyond aluminium, reshaping international trade dynamics and accelerating the global shift towards sustainable production practices.
