Europe and the CBAM Challenge: The Aluminium Industry Calls for Balance Between Sustainability and Competitiveness
Brussels, October 2025. The Spanish Aluminium Association and Surface Treatments (AEA) has held a key meeting at the European Parliament with institutional and industry representatives to assess the impact of the Carbon Border Adjustment Mechanism (CBAM) on the future of European aluminium. The event was covered by Mejor de Aluminio on its blog.
The session, held in the Parliament’s Member’s Salon, brought together around sixty participants, including Members of the European Parliament, parliamentary advisers, and representatives of industrial associations. The meeting was chaired by Susana Solís Pérez (EPP) and Adam Jarubas (EPP), both recognised for their work in the fields of environment, energy, and industry.
During her opening remarks, Solís stressed the need to adapt the CBAM’s design to the specific realities of each sector. “There is no one-size-fits-all solution. If we want to achieve our climate goals without destroying jobs or competitiveness, we must recognise the particularities of each industry,” she said.
Jarubas agreed on the importance of continuing dialogue between EU institutions and businesses to achieve a balanced framework: “The political commitment exists, but we still lack clarity on the practical implementation. Cooperation between Parliament, Council, and Commission will be crucial to avoid mistakes that could jeopardise Europe’s industrial future.”
A Key Material for the Green Transition
One of the central points of the debate was aluminium’s strategic importance within the European economy. According to Antoine Chacun, Head of Metals at ODDO-BHF, Europe is structurally dependent on aluminium imports. “Without aluminium, there is no green transition. It is essential for transport, photovoltaics, and power grids. But under the current design, CBAM will not significantly reduce emissions—it will simply shift the metal’s origin and increase costs by up to 8%, representing around one billion euros a year for downstream industries.”
The president of the Italian aluminium association CENTROAL-ASSOMET, Giorgio Di Betta, also underlined the need to fix existing imbalances before full implementation: “Aluminium is a strategic metal for Europe’s competitiveness. If CBAM excludes parts of the value chain, it will advantage external producers and merely shift emissions beyond our borders. We must refine the mechanism before applying it.”
Shared Concerns and Industry Consensus
Speakers agreed on the importance of adjusting CBAM without undermining climate objectives. Angelika El-Noshokaty, Managing Director of Aluminium Deutschland, warned of the lack of a consistent method for calculating the carbon footprint of imported goods. “Without clear rules, we risk trade conflicts, production leakage, higher costs for European metal, and job losses in a sector that employs over 60,000 people in Germany alone.”
The session concluded with an open exchange between political and business representatives, all calling for a fair, predictable regulatory framework aligned with Europe’s industrial competitiveness.
A Complex Global Context
This debate comes at a delicate time for European aluminium. The closure of Alcoa’s San Ciprián plant has forced Spain to import over 220,000 tonnes of aluminium annually, weakening its domestic production capacity. Added to this are sanctions against Russia and trade diversions through Turkey, in a market where the production capacity of allied countries such as Canada, Norway, and Iceland remains insufficient to ensure stable, competitive supply.
In this context, the AEA has voiced concern over the effects of CBAM on downstream industries. Its president, Felipe Quintá, warned that “in its current form, the mechanism does not prevent indirect imports of aluminium of Russian or Iranian origin through third countries, creating unfair competition and a real risk of industrial loss in Europe.”
Five Measures for a Balanced CBAM
The Spanish aluminium sector, representing nearly 10% of Europe’s processed aluminium and employing over 17,000 professionals, is calling for CBAM to be adapted to the specific characteristics of the industry to avoid disproportionate impacts. According to the AEA, applying CBAM without such adjustments could result in structural cost increases of up to €11 billion per year across Europe’s manufacturing industries.
To balance sustainability with competitiveness, the Association proposes five key actions:
- Conduct a full impact assessment before any definitive implementation.
- Grant a temporary exemption for aluminium until that analysis is completed.
- Acknowledge the sector’s specific features, including traceability and recycled content.
- Revise thresholds and reference values to reflect high-import-volume industries.
- Build a unified European position that protects a sector vital to energy transition and industrial autonomy.
A Call for Cooperation
The Brussels meeting reinforced a shared commitment to strengthen collaboration between European institutions and the industrial fabric. The AEA emphasised that the Spanish aluminium industry fully supports the EU’s climate goals but calls for a pragmatic and balanced implementation of CBAM that prevents market distortions and safeguards the competitiveness of an innovative, sustainable, and strategic sector for Europe’s future.
