CBAM and Aluminium: A Complete Guide for African Aluminium Exporters

Why Aluminium Has the Highest CBAM Exposure

Aluminium has the highest EU default embedded emission factor of all CBAM-covered sectors: 12.4 tCO₂ per tonne of aluminium. This reflects the enormous electricity consumption of the electrolytic reduction process (the Hall-Héroult process), which accounts for approximately 60% of aluminium's carbon footprint.

Aluminium CBAM Calculation

For a tonne of primary aluminium exported to the EU:

• ▸EU default embedded emissions: 12.4 tCO₂/t
• ▸CBAM certificate cost at €75/tCO₂ (2026 base): €930/t (at 2.5% effective rate = €23.25/t)
• ▸CBAM certificate cost at €110/tCO₂ (2030 base): €1,364/t (at 82% effective rate = €1,118/t)

African Aluminium Producers

| Country | Key Producer | Grid Carbon Intensity | CBAM Advantage | |---|---|---|---| | South Africa | Hillside Aluminium (Richards Bay) | 580 gCO₂/kWh | Low | | Mozambique | Mozal (Maputo) | 85 gCO₂/kWh | Very High | | Ghana | VALCO (Tema) | 290 gCO₂/kWh | High | | Egypt | Egyptian Aluminium (Nag Hammadi) | 450 gCO₂/kWh | Medium |

The Mozal Advantage

Mozal in Mozambique is powered predominantly by the Cahora Bassa hydropower dam (85 gCO₂/kWh grid intensity). With actual embedded emissions of approximately 4.2 tCO₂/t (vs the EU default of 12.4 tCO₂/t), Mozal's CBAM cost at 2030 rates would be:

• ▸Using EU default: €1,118/t
• ▸Using actual verified emissions: €379/t
• ▸Annual saving (100,000t): €73,900,000/year

Verification is not a compliance exercise for Mozal — it is a strategic imperative worth tens of millions of euros annually.

The Hillside Challenge

South Africa's Hillside Aluminium, powered by Eskom's coal-heavy grid (580 gCO₂/kWh), faces actual embedded emissions close to or above the EU default. Hillside's CBAM strategy must focus on grid decarbonisation, renewable energy procurement, and process efficiency improvements.

Register at the Digital Product Passport Registry to begin your aluminium CBAM compliance assessment.