MOSCOW, July 21. /TASS/. Rusal hopes that the European Commission will support low-carbon aluminum producers amid the EU plans to impose "climate" customs duties on aluminum imports, Roman Andryushin, Rusal's deputy general director for sales in Russia, the CIS, and China, told reporters.
"In terms of EU carbon regulation, we believe that we are in a good position as our "green" aluminum is produced by the hydraulic power industry and we have a lower carbon footprint than our competitors. We hope the European Commission will support aluminum producers with a low carbon footprint," he said.
The company is also actively advocating for the liberalization of low carbon footprint aluminum, Andryushin said.
Earlier, the press service of the Russian aluminum holding told TASS that the introduction of duties on aluminum imported to the European Union will automatically lead to an increase in its average cost in the market and will affect the competitiveness of manufacturers of high-tech products.
Rusal is the largest aluminum producer outside China and the only producer of primary aluminum in Russia. The company’s production reached 3.755 mln tonnes in 2020, while sales decreased by 6% to 3.926 mln tonnes.
About EU carbon tax
The European Commission (EC) came up with an extensive action plan for the complete elimination of carbon emissions in the EU by 2050, which will require a complete restructuring of the EU economy. In particular, the European Commission proposed introducing climate-related customs duties on imports of iron and steel (including pipes and rails made of them), aluminum, cement, fertilizers, and electricity to the EU.
The EC plan envisages a transition period from 2023 to 2025. During this period, importers will have to report quarterly the actual emissions associated with goods imported into the EU as well as about any payments for carbon emissions abroad. The companies will start paying customs duties only from 2026 when the mechanism of cross-border carbon regulation finally comes into force. For this, importers will buy the corresponding carbon certificates.
Russia’s Economic Development Ministry assessed the impact of the measures developed by the EC on cross-border carbon regulation on the supply of metal products, cement, and electricity from Russia to the EU at $7.6 bln.