LONDON (Reuters) - Platts will launch price assessments in April for ‘green’ aluminium, which is made using process that cut carbon emissions, the pricing agency said on Friday.
The metals sector has struggled with adopting common standards for low-carbon aluminium as rival producers fight for market share among consumers who are under pressure to cut their own emissions footprints.
The London Metal Exchange, the world’s biggest industrial metals market, has rejected calls to create a separate contract for low-carbon aluminium and instead plans to create a digital register this year to store carbon details and an online platform for trading.
S&P Global Platts said it would start issuing daily prices for both low-carbon and zero-carbon aluminium on April 6.
Most large aluminium groups have launched products with lower-carbon footprints, mostly using hydro power, but each uses different standards.
Platts said its low-carbon aluminium price would apply to primary aluminium with maximum emissions at the smelter of four tonnes of carbon dioxide per tonne of metal.
“While Platts is initially providing new low-carbon pricing focused on aluminium, we also plan to launch additional price and cost references throughout the metals and raw materials value chains,” said Ian Dudden, global pricing director for metals and agriculture.
Aluminium, which requires huge amounts of power to smelt, is one of the most carbon-intensive metals, emitting an average of 16.5 tonnes of CO2 per tonne of production. In contrast steel processing, while a much bigger polluter overall, emits just 2.3 tonnes per tonne.
Reporting by Eric Onstad; Editing by Edmund Blair
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