Banks join aluminium decarbonisation group

Three banks have announced that they will partner with RMI’s Center for climate-aligned finance to help decarbonize the aluminum sector.

The banks, all leading lenders to the aluminum sector, are Citi, ING, and Societe Generale who will form the Aluminum Climate-Aligned Finance Working Group to help reduce the industry’s emissions. The Working Group will create a collective climate-aligned finance framework that defines how lenders can support the decarbonization of the aluminum sector, which accounts for 2 percent of all planet-warming emissions per year, and measure progress toward that goal. By signing up to the framework, participating financial institutions will commit to assessing and disclosing the degree to which the emissions associated with their aluminum portfolios are in line with 1.5°C climate targets .

The Working Group comprises senior metals and mining leaders from each participating financial institution and will be facilitated by RMI’s Center for Climate-Aligned Finance. It will establish the measurement methodology, emissions benchmark, data and reporting framework, and governance structure for the framework in collaboration with existing decarbonization initiatives. The Working Group will invite other financial institutions to adopt the CAF framework in early 2023 and help set global best practices on climate for aluminum finance.