PRODUCT CLASSIFICATION AND ITS IMPLICATION ON COMPETITIVENESS AND CARBON LEAKAGE

The report analyzes the aluminium sector's exposure to carbon leakage, finding that while the sector as a whole is trade-intensive, the risk varies by product. Unwrought non-alloy aluminium is identified as particularly vulnerable due to high trade and CO2 intensity, whereas secondary aluminium and semi-fabricated products pose lower risks. The study highlights a shift in primary production capacity toward China and the Middle East, while the EU27 remains a leader in recycling but continues to export scrap to China.

• The aluminium sector is officially classified as being at risk of carbon leakage under EU ETS criteria, with a calculated trade intensity of 36% and a CO2 cost as a proportion of Gross Value Added (GVA) of 15%, both of which exceed the required thresholds.
• Unwrought non-alloy aluminium (primary aluminium) is highly susceptible to carbon leakage because it combines a high average trade intensity of 79% (2006-2009) with a high CO2 intensity benchmark of 1514 kg CO2/t.
• Secondary aluminium and semi-fabricated products are considered lower risks for carbon leakage; secondary aluminium has a low trade intensity (average 10%) and low CO2 intensity, while semi-fabricated products have low direct emissions and benefit from product specialisation.
• Global primary aluminium production shifted between 2005 and 2009, with China's share increasing from 24% to 35%, while the shares of the EU27 and the USA both declined by 3 percentage points.
• The EU27 is a net importer of aluminium, importing products valued at an average of $18 billion annually compared to $8 billion in exports, with unwrought aluminium making up 63% of import value between 2005 and 2010.
• Carbon leakage from the import of unwrought aluminium into the EU27 is a specific concern when the product originates from the Russian Federation due to its high carbon electricity content, whereas imports from Norway do not result in leakage as Norway is an EU ETS member with low-carbon electricity.

APA

Healy, S., & Schumacher, K. (2011). PRODUCT CLASSIFICATION AND ITS IMPLICATION ON COMPETITIVENESS AND CARBON LEAKAGE. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2014/11/aluminium-report-cs-final-version-with-executive-summary.pdf

Chicago

Healy, Sean, and Katja Schumacher. PRODUCT CLASSIFICATION AND ITS IMPLICATION ON COMPETITIVENESS AND CARBON LEAKAGE. Climate Strategies, 2011. https://climatestrategies.org/wp-content/uploads/2014/11/aluminium-report-cs-final-version-with-executive-summary.pdf.

Wikipedia

{{cite report |last1=Healy |first1=Sean |last2=Schumacher |first2=Katja |title=PRODUCT CLASSIFICATION AND ITS IMPLICATION ON COMPETITIVENESS AND CARBON LEAKAGE |publisher=Climate Strategies |date=2011 |url=https://climatestrategies.org/wp-content/uploads/2014/11/aluminium-report-cs-final-version-with-executive-summary.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{healy2011product, author = {Healy, Sean and Schumacher, Katja}, title = {{PRODUCT CLASSIFICATION AND ITS IMPLICATION ON COMPETITIVENESS AND CARBON LEAKAGE}}, institution = {Climate Strategies}, year = {2011}, url = {https://climatestrategies.org/wp-content/uploads/2014/11/aluminium-report-cs-final-version-with-executive-summary.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }