When going green becomes the new profit curve for aluminium. Or does it?
The aluminium industry sits at a stark juncture where demand tied to the energy transition is set to surge. But is it a viable choice, bearing the short-term and long-term impact? Industry projections point to roughly an 80 per cent rise in aluminium demand by 2050, while the sector itself remains an outsized emitter, with direct emissions concentrated in primary production and global sector emissions measured in the order of gigatonnes. Meeting downstream demand for “green” metal while slashing the sector’s own footprint is not optional: it is an existential commercial imperative. The choice facing producers is binary in economic terms. Invest now, absorb large up-front costs and capture a durable price and capital advantage; or delay, preserve short-term margins and face growing regulatory, market and financing penalties that will erode competitiveness.
Dual role of aluminium in the energy transition
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