LME to include CBAM info for aluminum brands

Starting June 15 of next year, the London Metal Exchange (LME) says it will be integrating European Union Carbon Border Adjustment Mechanism (CBAM) requirements into its rules “in order to support the aluminum market and value chain with implementing this environmental policy.”

This May, the LME released a discussion paper and started a “consultation report” on the proposed integration of the EU CBAM requirements into the LME Rulebook pertaining to LME Primary Aluminum, Aluminum Alloy and North American Special Aluminum Alloy (NASAAC) branded metals.

“Following the feedback period, we have decided to move forward with this initiative and implement mandatory CBAM emissions reporting, in line with the EU CBAM regulation (and voluntary International Aluminium Institute [IAI]-aligned emissions reporting) for all LME-listed aluminum brands,” states the exchange.

Between now and next June, each LME-listed aluminum brand will be required to fill in an LME emissions reporting form and then upload the completed form to LMEpassport. Metals producers will continue to fill out that form on an annual basis, says the exchange.

“Using this method, producers will not have to change their current certificate of analysis (CoA) process, and future metal owners will be able to receive and view relevant emissions information when they receive a warrant,” states the LME.

Additionally, aluminum producers will need to log into LMEpassport to upload their emissions reporting form, adds the organization.

LME says the first deadline to submit CBAM-related emissions reporting is next June 15. “We will not require verification of the emissions data entries made on June 15, 2025, but this will be a requirement in future years,” states the LME, adding, “We are setting an annual deadline of April 15 from 2026 onward.”

While several other metals are traded and warehoused via the LME, the exchange says it has no current plans to extend its CBAM-related rules beyond aluminum, “in line with EU requirements.”

Concludes the exchange, “We recognize that other jurisdictions may introduce similar carbon border adjustment policies in the future. The LME will monitor these initiatives closely and include them in the emissions reporting scheme when necessary.”