An industry association with Beijing's support, which commenced its certification of low-carbon aluminium in June, anticipates accrediting approximately 2.75 million tonnes as low-carbon this year. This volume equals around 7 per cent of the total industry production and is projected to increase to 4 million tonnes by 2024.

China stands as the predominant global producer of aluminium, a manufacturing process known for its significant environmental impact due to its substantial electricity consumption. In China, this electricity generation predominantly relies on coal, although the industry has been progressively transitioning towards greater utilization of hydropower and other renewable energy sources.

Ma Cunzhen, who serves as the director of the China Green Metal Certification Center (CGMC) operating under the China Nonferrous Metal Industry Association, emphasized that the Chinese aluminum smelters are increasingly driven to demonstrate the environmental sustainability of their products in response to the growing insistence from global giants like Apple, Audi, and BMW for greener supply chain practices.

To date, the CGMC has granted certification to 2.24 million tonnes of eco-friendly aluminium, involving 28 companies, including the largest smelters in the country. Additionally, they are currently in the process of evaluating an additional 500,000 tonnes for certification this year, with each application typically taking about a week to assess, as explained by Ma.

Ma said, "We are seeing great responses from companies who are seeking to get the assessment as soon as possible."

Chalco's Qinghai unit and Henan Zhongfu Industrial's Sichuan province operation have both achieved CGMC verification, as indicated on their respective websites. Ma further stated that CGMC issues certificates for aluminium produced exclusively using renewable energy sources like hydro, wind, or solar power.

Although there is a slight premium for green-certified aluminium in Europe, Chinese smelters are currently unable to command higher prices for their products with such verification, as reported by Asian traders, bankers, and producers. Ma explained that in China, the utilization of coal-fired power during the electrolysis process results in the production of nearly 14 tonnes of carbon dioxide for every tonne of primary aluminium. This figure can be reduced to less than 2 tonnes when renewable energy sources are employed.

A one-year certificate is priced at RMB 2 yuan, which is a small fraction of the current market value of aluminium at RMB 19,190 per tonne on the Shanghai Futures Exchange.

The European Union's Carbon Border Adjustment Mechanism (CBAM) is scheduled to be fully implemented by 2026, and it is anticipated to significantly increase the demand for green certification, according to Ma.

Antaike, a Chinese research institute with government support, projects that the domestic demand for environmentally certified aluminium will more than double from 5 million tonnes in 2022 to 12 million tonnes by 2030. Similarly, demand for green aluminium outside of China is also expected to double, reaching 3 million tonnes during the same timeframe.