Sustainability
ALFED Launch 'The Element of Choice' with CWP
The Element of Choice: A Sustainable Future highlights how aluminium is powering innovation, sustainability, and economic growth in the UK and beyond.
After months of uncertainty over US tariffs, the UK–US Economic Prosperity Agreement removed the 25% duty on aluminium, restoring confidence for exporters. With decarbonisation, resilience, and energy security now priorities, aluminium has become central to the UK’s future economy — underscoring the need for a strong, unified industry voice.
Produced by Content With Purpose in partnership with ALFED, the new digital series explores aluminium’s growing strategic importance across industries.
Discover more at: https://contentwithpurpose.co.uk/alfed/theelementofchoice
Carbon Border Adjustment Mechanism (CBAM)
The UK Carbon Border Adjustment Mechanism (CBAM) will introduce a carbon price on certain imported goods, including aluminium, fundamentally changing reporting and compliance requirements across the supply chain.
For aluminium businesses, CBAM is not just a policy update, it is a strategic issue. Importers and downstream manufacturers will need robust carbon data, clear internal processes, and early preparation to remain competitive and compliant. ALFED is actively representing members’ interests and providing updates, guidance, and engagement opportunities with Government.
The Government has now published the draft secondary legislation for the UK Carbon Border Adjustment Mechanism (CBAM) for technical consultation, alongside supporting notices which will have force of law. This technical consultation is intended to ensure that the primary legislation delivers the policy correctly and effectively. It is not a further consultation on the overall policy design.
You can access the draft secondary legislation and supporting documents here:
https://www.gov.uk/government/consultations/draft-regulations-carbon-border-adjustment-mechanism-cbam
CBAM is no longer on the horizon - it’s already reshaping global trade. But are you truly prepared?
In a recent podcast on Trade, Customs & CBAM featuring Anna Doherty from The Chartered Institute of Export & International Trade, we break down why CBAM should be on your radar right now, especially as the EU and UK take two very different approaches. From the EU’s certificate-based system to the UK’s proposed tax model and reporting thresholds, businesses must navigate a complex and evolving landscape.
We also explore one of the biggest challenges companies face today: estimating CBAM exposure. Without reliable emissions data, many businesses risk either overestimating or underestimating their liabilities, and with new service providers entering the space, uncertainty still remains.
Crucially, don’t assume that preparing for EU CBAM means you’re ready for the UK version. These systems may share a name, but they operate differently, and a one-size-fits-all strategy simply won’t work. Understanding both regimes, and how they may interact as policies evolve, is essential.
Finally, we look at the bigger picture: Is CBAM the future of global trade? With the EU leading and the UK close behind, more countries are exploring similar mechanisms. The direction is clear, sustainability is becoming a core pillar of international trade policy.
If you’re involved in imports, exports, or supply chains, this is a must-watch to stay ahead of compliance and cost risks.
CCA
Climate Change Agreements (CCA) - Supporting Energy Efficiency and Cost Reduction
The UK Government’s Climate Change Agreement (CCA) scheme provides significant long-term discounts on the Climate Change Levy (CCL) for eligible energy-intensive businesses. For companies operating within the aluminium, titanium and magnesium value chains, the scheme offers a clear opportunity to reduce operational costs, improve energy performance and support decarbonisation goals.
Phase 3 of the CCA scheme begins in January 2026 and runs until 2033. Businesses that qualify and hold an active agreement can secure meaningful savings on electricity and natural gas costs throughout this period, while benefiting from a structured framework for energy efficiency improvement.
Why the CCA Scheme Matters
- Substantial long-term savings: Eligible operations can secure high-percentage reductions on CCL charges applied to energy bills.
- Improved operational resilience: Savings can be reinvested into efficiency, equipment upgrades or decarbonisation measures.
- Structured compliance: Participants follow a clear reporting and target-setting process, helping maintain focus on energy management.
- Supports industry-wide sustainability goals: The scheme aligns with ALFED’s broader commitment to improving carbon performance across the UK aluminium sector.
With Phase 3 starting in 2026, now is the time for businesses to review eligibility and ensure they are prepared for the next reporting window.
Why May Be Eligible?
Facilities operating one or more of the following processes may qualify under the sector definition:
- Melting, alloying or refining of aluminium, titanium or magnesium
- Electrolytic or chemical surface treatment
- Recovery and reprocessing of secondary material
- Production of chemicals involving these metals
- Other metallurgical, chemical or electrolytic activities associated with aluminium operations
Eligibility is assessed at site level and is based on both process type and the proportion of energy used in qualifying activities.
If you are unsure whether your site meets the criteria, the ALFED team can provide a free initial eligibility assessment.
How ALFED Supports CCA Participants
As the sector association for aluminium in the UK, ALFED administers the CCA scheme on behalf of the industry. Working with technical specialists, we support businesses by:
- Assessing eligibility and guiding new applicants
- Managing the transition into Phase 3
- Supporting target setting, data reporting and compliance
- Submitting information to the Environment Agency
- Providing regular performance updates and guidance
- Ensuring evidence packs and audit requirements are understood and maintained
- Helping businesses navigate changes in scheme rules
This support ensures that participants are well-informed, compliant and able to maximise the value of their agreement.
Speak to the ALFED Team
If your business pays the Climate Change Levy and operates aluminium, titanium or magnesium processes, you may benefit from joining the CCA scheme ahead of Phase 3.
To discuss eligibility, onboarding or next steps, contact: alfed@alfed.org.uk
ALFED Sustainability
ALFED Sustainability Initiatives
One area where ALFED is keen to offer more value to partners and members is through sustainability initiatives.
The aluminium industry is a vital part of the UK manufacturing sector and an essential component of the modern UK economy, which will play a key role in the UK’s transition to a more sustainable future.
Aluminium is ideally positioned to help UK industry as it moves towards more sustainable supply chains and through support from ALFED’s Sustainable Suppliers and by adhering to the 2050 Roadmap, we are committed to working with members on programmes which directly impact the future of a circular economy.
Aluminium is widely recycled in UK
Learn More
Because aluminium can be recycled endlessly while maintaining its quality, it’s a key part of global drives towards waste reduction and a circular economy. We work closely with government, members, other industries and trade bodies worldwide to maximise aluminium’s contribution to innovation and policy.
For example, a recent initiative is our collaboration with European Aluminium regarding the EU Circular Economy Package, which looks at elements such as recognition of multiple recycling, aluminium packaging targets and metal recovery from incinerator bottom ashes.
We’re tying this into innovation-related activity promoting more efficient recycling processes and the use of recycled aluminium in new applications. This includes advanced engineering and packaging among others, and also involves advising on related standards development.
Another crucial part of recycling is education, and through both our training courses and outreach campaigns, we promote developments that move our industry forward.
ALFED environmental policy
At ALFED, we are fully committed to leading our members in delivering increased environmental responsibility. We recognise the urgent need to address environmental challenges and we are steadfast in our commitment to making a positive impact.
As part of our work, we work to comply with all environmental and sustainability laws and regulations, while also actively encouraging our members to seek innovative ways to reduce their own environmental footprint.
We encourage all employees to take care of the environment that we work in, as well as the wider world. All colleagues will pay regard to the environmental impacts of the decisions they make and should seek to minimise these.
Our goal is to lead by example, transparently reporting our progress as we work towards a more sustainable future. Together, we can create a greener, more sustainable world for generations to come.
