A few of the world’s major aluminium producers are less than pleased with the London Metal Exchange with its move to provide a new trading platform for green aluminium. Such was the report after they recently went on record with financial media admitting to opposing the LME’s plans.
In an article in Financial Times, executives for Norsk Hydro and Hindalco said their firms were not in favor of the move, which the LME says is a method for determining whether buyers would pay a premium for “green aluminium.”
However, according to Norsk Hydro’s Hilde Merete Aasheim, a new platform for low-carbon aluminium would reduce their incentive for producing it.
“We are a little bit afraid you will commoditise a specialised product. There are a number of green products out there — you have to be precise about what is your [carbon] content, it’s not one standard calculation.”
She went on to say that such a move would depress standards for “green aluminium” across the board.
Additionally, Hindalco’s Satish Pal said too strong a focus on more sustainability in aluminium smelting would tend to threaten to weaken that focus in bauxite mining and alumina refining.
“The concept of green aluminium is being hijacked for economic benefits by a few companies. It’s a concept that needs to be looked at from a holistic environmental and sustainability point of view across the whole value chain.”
The LME responded by saying it will continue to pursue the idea.
“We welcome all views in respect of our proposed sustainability strategy and are considering the feedback we’ve received as part of the discussion paper process,” said the Exchange.