Sustainable Aluminum 101: How to Decarbonize a Critical Material for the Energy Transition

The aluminum industry accounts for approximately 2% of global greenhouse gas emissions, primarily due to coal-fired electricity used in bauxite ore processing. To align with a 1.5°C pathway, emissions must decrease by 77% by 2050, even as demand is projected to rise by 50% to 80%. Decarbonization requires a dual approach: transitioning primary production to renewable energy and increasing the global use of post-consumer scrap from 21% to 46% by 2050. RMI is addressing these challenges by providing GHG emissions reporting guidance to increase transparency for buyers and financial institutions, supporting the estimated $1 trillion in investment needed for the transition.

• The aluminum industry contributes roughly 2 percent of global greenhouse gas emissions, with a significant portion originating from China, which produces 55 percent of the world's aluminum using emissions-intensive coal-fired electricity.
• To remain within a 1.5°C pathway, the industry must reduce emissions by 77 percent by 2050, despite an expected increase in aluminum consumption of 50 to 80 percent driven by the energy transition.
• Achieving net-zero goals requires specific changes to scrap usage: pre-consumer scrap must be reduced from 13 percent to 9 percent of production, and the global use of post-consumer scrap must increase from 21 percent to 46 percent by 2050.
• Transitioning the aluminum sector to renewable energy and reaching net zero by 2050 will require nearly $1 trillion in additional investment.
• Current industry reporting often conflates all recycled content, making it difficult to distinguish post-consumer scrap from pre-consumer scrap; RMI's reporting guidance seeks to separate these disclosures to incentivize the use of end-of-life scrap.

APA

RMI (2024). Sustainable Aluminum 101: How to Decarbonize a Critical Material for the Energy Transition. https://rmi.org/resources/sustainable-aluminum-101-how-to-decarbonize-a-critical-material-for-the-energy-transition/

Chicago

RMI. Sustainable Aluminum 101: How to Decarbonize a Critical Material for the Energy Transition. 2024. https://rmi.org/resources/sustainable-aluminum-101-how-to-decarbonize-a-critical-material-for-the-energy-transition/.

Wikipedia

{{cite report |author=RMI |title=Sustainable Aluminum 101: How to Decarbonize a Critical Material for the Energy Transition |date=7 February 2024 |url=https://rmi.org/resources/sustainable-aluminum-101-how-to-decarbonize-a-critical-material-for-the-energy-transition/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2024sustainable, author = {{RMI}}, title = {{Sustainable Aluminum 101: How to Decarbonize a Critical Material for the Energy Transition}}, institution = {RMI}, year = {2024}, month = feb, url = {https://rmi.org/resources/sustainable-aluminum-101-how-to-decarbonize-a-critical-material-for-the-energy-transition/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }