Policy Areas

The UK’s CBAM must align with EU regulations to ensure a level playing field, particularly by excluding indirect emissions from its scope. Including indirect emissions creates additional burdens and inconsistencies for UK producers competing in EU markets.

Furthermore, CBAM’s scope should extend to downstream products, ensuring comprehensive coverage across the value chain. ALFED recommends that the government consult with industry stakeholders to address the practical implications of CBAM implementation, allowing businesses to adapt effectively.

Maintaining tariff-free access to key markets such as the EU and EFTA is critical for the aluminium industry. Trade defences must be strengthened to combat dumping and subsidised imports that undermine UK producers.

To remain competitive, the UK should align its trade policies with EU standards, avoiding regulatory divergence that could disadvantage domestic businesses. Collaborative efforts with trade bodies and industry stakeholders are essential to securing agreements that protect the UK’s global market share.

ALFED emphasises the need for robust recycling infrastructure to retain high-quality aluminium scrap within the UK. Supporting technologies for dismantling and processing post-consumer scrap will enhance the circular economy. Incentives should be introduced to encourage manufacturers to use high-recycled-content materials, driving sustainability across the sector. The goal is to achieve measurable increases in recycling rates and domestic scrap retention by 2030.

Energy affordability and stability are vital for energy-intensive industries like aluminium production. Stabilising energy pricing and ensuring sufficient grid infrastructure to support renewable energy adoption are key priorities. ALFED recommends reinvesting carbon revenues into decarbonisation projects and providing targeted subsidies to support the transition to renewable energy. These measures are critical for maintaining the aluminium sector’s competitiveness while contributing to net-zero targets.

The aluminium industry faces significant skills shortages that must be addressed through targeted apprenticeship programs and partnerships with educational institutions. Developing industry-specific training and retaining talent through competitive opportunities and career progression are vital to sustaining the sector’s growth. ALFED proposes a sector-wide workforce strategy in collaboration with trade associations and government bodies.

Attracting domestic and foreign investment in aluminium production and recycling facilities is essential for the sector’s growth. ALFED supports the introduction of tax credits for investments in innovative manufacturing processes and green technologies. These incentives would drive R&D in areas such as lightweighting, energy efficiency, and new applications. Positioning the UK as a global leader in aluminium innovation requires sustained support from both government and industry stakeholders.