Environmental and socio-economic impacts of the circular economy transition in the EU aluminium sector

The implementation of Circular Economy (CE) levers in the EU aluminium sector has the potential to reduce greenhouse gas emissions by 12-14 Mt CO2-eq. annually by 2050, in addition to what would be achieved by decarbonising the energy system only. CE levers also lead to a decrease in the demand for bauxite as well as reductions in energy demand, leading to a EUR 3.6 billion annual increase in the EU trade balance with import reductions from China, Russia, USA and the UK. However, this may come with potential trade-offs, such as reduced employment and Gross Value Added, which needs to be further investigated to obtain a more accurate assessment of the implications of CE levers on the service and research and development sector. The study’s findings are policy-relevant, highlighting the need for a holistic approach and policy mix over the lifecycle of materials and products to materialise the CE potential, while informing EU policymakers on feasible strategies to support the aluminium sector’s sustainability transition.