The aluminium industry must cut its emissions intensity by 30 per cent by 2030 and 9 per cent by 2050 compared to 2022 levels to align with the International Aluminum Institute’s (IAI) 1.5-degree benchmark. To achieve this, absolute carbon dioxide (CO2) emissions for aluminium (both primary and secondary) need to be reduced to 810 million tonnes in 2030 and further to 53 million tonnes by 2050.
Image Source: Can Manufacturers Institute
The industry has reduced emission intensity by 13.6 per cent from 2019 to 2023 which is primarily driven by improvements in reduced reliance on coal, increased secondary production and energy efficiencies. The absolute emission for aluminium (primary and secondary combined) was 1.13 gigatonne of CO2 e in 2019, decreasing to 1.12 gigatonne of CO2 e in 2023. Hydropower and renewable energy contribute to 39 per cent of the electricity used in smelting. Secondary aluminium, which requires significantly less energy, contributes to 36 per cent of total production.
Wisconsin statistics walk the opposite way
Despite the global emphasis on sustainability, Wisconsin faces declining aluminium recycling rates. A recent report from the Wisconsin Policy Forum reveals that facilities handling materials from local governments are receiving less aluminium recycling material. Between 2013 and 2022, aluminium container recycling fell by 16.4 per cent, or 1,800 tonnes. Local media attribute this drop to younger generations consuming less beer and alcoholic beverages, which traditionally come in aluminium cans.
The decrease in recyclable materials, coupled with reduced state funding, has led to higher recycling costs for local governments. A reduction in proceeds from recyclable sales, driven by lower market prices and changes in material composition, has compounded the issue.
According to the report, “If state leaders want to ensure continued high-quality recycling services and limit the growth of local taxes and fees, they could consider increasing state recycling aids to again cover a larger portion of the costs.”
Why is aluminium the most valuable recycling material?
Aluminium stands out as the most valuable material in the recycling stream, valued at over $1,000 per tonne. However, overall recycling at facilities dropped by 6,900 tonnes (1.7 per cent) from 2013 to 2022, with per capita recycling falling 5.6 per cent. Interestingly, the rise in online shopping has driven a surge in cardboard recycling, which now constitutes 60 per cent of the recycling stream. Corrugated cardboard recycling nearly doubled, from 53,974 tonnes annually to 109,651 tonnes, reflecting the impact of increased e-commerce during the COVID-19 pandemic.
A survey by the Aluminum Association and the Can Manufacturers Institute (CMI) highlights a declining trend in consumer aluminium can recycling rates in the US. Once averaging 52 per cent in the 1990s, the rate dropped to 43 per cent by 2023. Despite this, aluminium cans still outperform glass (39.6 per cent) and plastic bottles (20 per cent) in recycling rates.
According to a recent report published by the World Energy Forum on the aluminium industry net zero tracker, the aluminium sector is in dare need of substantial capital investment to steer forward low-emission smelting and refining technologies beyond merely decarbonising power sources, with an estimated requirement of US$543 billion. And can industry has a major role to play in it.
The lion’s share of this funding must come from the entire ecosystem, and not only from aluminium companies, to build the targeted enabling infrastructure. Aluminium decarbonisation requires a scale-up of low-carbon power, hydrogen and CCUS. The aluminium sector must invest in retrofitting smelting and refining to enable electrification and reduce emissions.
Is there a promising future ahead?
North America leads global aluminium can usage, with demand projected to rise from 120 billion cans in 2020 to 173 billion by 2030. Aluminium can usage accounts for over one-third of global consumption, bolstered by the movement to reduce plastic waste. The market for aluminium cans is anticipated to grow at a compound annual growth rate (CAGR) of 4.7 per cent, reaching US$ 92.31 billion by 2033 from US$ 58.31 billion in 2023.
Environmental and economic benefits
Recycling aluminium cans significantly benefits the environment, saving energy, reducing greenhouse gas emissions by approximately 80 per cent compared to virgin aluminium production, and generating revenue and employment within the recycling system. According to the CMI, “The more cans that are recycled, the more energy is saved, fewer greenhouse gases are emitted, and the more revenue and jobs are created in the recycling system.”
Aluminium recycling remains a cornerstone of sustainability efforts. With focused initiatives and increased public awareness, this industry can continue to play a vital role in reducing emissions and fostering a circular economy.
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