New analysis from Alcoa and Eurasia Group explores synergies and trade-offs for the global aluminum industry amid accelerating decarbonization and policy shifts
Alcoa Corporation, together with Eurasia Group, today announced the publication of a new white paper, “Competitiveness & Green Transition in the Aluminum Industry: Finding Synergies or Facing Trade-Offs,” which examines the intersection of economic competitiveness and the global green transition in the aluminum industry.
The white paper highlights how aluminum demand is rising across technologies such as solar panels, wind turbines, electric vehicles and the transmission projects that support them. At the same time, the industry is working to reduce its own carbon footprint, as a critical player in the global energy transition.
“Aluminum is essential to the world’s low-carbon energy transition, and at the same time has opportunities to improve our own carbon footprint,” said Nicol Gagstetter, Alcoa’s Executive Vice President and Chief External Affairs Officer. “This white paper offers a perspective on how the aluminum industry can improve its competitiveness relative to other industries while also addressing the requirements of decarbonization. Alcoa is pleased to play a part in furthering the industry’s conversation regarding competitiveness and the green transition while also providing the products and technologies necessary to achieve these aspirations.”
Key Insights
- Balancing competitiveness and decarbonization: Global industry leaders, including Alcoa, are pursuing ambitious climate ambitions while facing challenges such as high energy costs, supply chain disruptions and shifting policy landscapes.
- Trade and policy dynamics: Implementation of major green policies—including the European Union’s Carbon Border Adjustment Mechanism (CBAM)—are expected to reshape trade flows and supply chain decisions, creating both risks and opportunities for aluminum producers.
- Strategic recommendations: The white paper emphasizes circular economy initiatives, deeper supply chain traceability, digital innovation and region-specific strategies as pathways to capture value in the energy transition.
Industry Context Provided by the White Paper
Global investment in the energy transition reached a record $2.1 trillion in 2024, with aluminum demand projected to increase 40% by 2030 and 80% by 2050 compared to 2020. Currently, the aluminum sector accounts for approximately 3% of global industrial carbon emissions, underscoring the scale of the challenge and the opportunity for the industry to play a part in the green transition.
The report outlines how investments in circularity, low-carbon technologies and supply chain traceability can help aluminum producers remain competitive in a rapidly changing global marketplace.
Alcoa’s Role in Providing Low-Carbon Solutions
Alcoa’s Sustana® line offers a comprehensive portfolio of sustainable products, including EcoSource® alumina, EcoLum® primary aluminum and EcoDura® aluminum, featuring properties such as low-carbon emissions and recycled content. Complementing this portfolio is the breakthrough ELYSIS® technology under development, which aims to eliminate direct greenhouse gas emissions from the traditional aluminum smelting process. Together, these innovations showcase how Alcoa is harnessing renewable energy, advancing circular solutions and driving technological progress to accelerate decarbonization across the aluminum value chain.
“Our vision is to build a legacy of excellence for future generations,” said Ms. Gagstetter. “By sharing this analysis, Alcoa aims to spark dialogue and collaboration across stakeholders including industry, government, and civil society to enable aluminum to continue to be part of the solution to one of the world’s biggest challenges.”
The white paper is available for download at https://www.eurasiagroup.net/live-post/competitiveness-and-the-green-transition-in-the-aluminum-industry-finding-synergies-or-balancing-trade-offs.
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