'We are pleased that the EU's revised guidelines for CO2 compensation pave the way for continued production of low-carbon aluminum in Norway for a world market that is increasingly demanding more of our products,' says Hydro President & CEO Hilde Merete Aasheim.
'For Hydro's renewable-based aluminum production, predictable and robust compensation of the actual CO2 surcharge in power prices will make a very important contribution to being able to maintain and continue operations.'
The first period for CO2 compensation started in 2013, when aluminum was included in the EU quota system ETS (Emission Trading Scheme), and expires at the turn of the year.
Hydro President & CEO Hilde Merete Aasheim
The program compensates companies that emit the least greenhouse gases and provides financial support to power-intensive industries that are exposed to carbon leakage. This will help prevent European industry from shifting production to countries that do not have as strict a climate policy and that greenhouse gas emissions will be higher overall.
'The EU recognizes aluminum as an important raw material in the climate initiative through 2050. As we see the revised guidelines, the EU has listened to the input given by Norway and the Norwegian government. At the same time, the EU gives the Norwegian authorities great freedom to safeguard Norwegian interests. By fully implementing the program in Norway, the Norwegian authorities can thus maintain the competitiveness of Norwegian industry that competes internationally. It is important for many Norwegian workplaces,' says Aasheim.
Now that the EU has now established the framework, the member states, and Norway through the European Economic Area agreement, decide on national guidelines, which must be approved by the EU Commission. Norwegian guidelines must be notified to European Free Trade Association Surveillance Authority for approval.
Aluminum is on the EU's list of raw materials that will contribute to the 'Green Deal' with the goal of making Europe climate neutral by 2050. Hydro produces around 1 million tonnes of aluminum in Norway based on hydropower and wind power, which ranks among the world's lowest carbon footprint. This happens at the plants in Sunndal, Årdal, Høyanger, Husnes and Karmøy. Within the EU, Hydro also has aluminum production in Germany and Slovakia.
Hydro believes that Norway has the prerequisites to create the world's greenest metal industry. Norwegian low-carbon products can play a crucial role in reducing global CO2 emissions and meeting the growing demand for these products in a number of sectors.
Published: September 21, 2020