From 15 June 2025, the LME will be integrating the EU Carbon Border Adjustment Mechanism (CBAM) requirements into the LME rules in order to support the aluminium market and value chain with implementing this environmental policy.
On 1 May 2024, the LME released – via Member Notice 24/178 – a consultation on the proposed integration of the EU CBAM requirements into the LME Rulebook in respect of LME Primary Aluminium, Aluminium Alloy and North American Special Aluminium Alloy (NASAAC) in order to support the aluminium market.
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 aluminium brands. In light of the feedback received, there have been a number of adjustments made to the initial consultation proposal.
The seven key areas which outline LME’s next steps:
LME emissions reporting form
Each LME-listed brand will be required to fill in the LME emissions reporting form (Excel) and then upload the completed form to LMEpassport each year. LMEpassport will then associate the uploaded form with any CoA that is linked to that particular brand. Using this method, producers will not have to change their current CoA process, and future metal owners will be able to receive and view relevant emissions information when they receive a warrant. Additionally, LMEpassport will be expanded so that if a producer opts to publish their CBAM information detailed within the form, it will be automatically published via their public producer profile on LMEpassport.
Use of LMEpassport
Aluminium producers will need to log into LMEpassport to upload their emissions reporting form. Users will navigate to the “Manage sustainability profile” section and then "CBAM” where they will have the option to “upload a new CBAM submission” for each LME deliverable aluminium brand. Producers will also have the capability to manage and view their previous submissions.
Timelines and verification
The first deadline to submit LME emissions reporting form will be 15 June 2025. We will not require verification of the emissions data entries made on 15 June 2025, but this will be a requirement in future years. We are setting an annual deadline of 15 April from 2026 onwards, as outlined in the table below.
Transparency
The emissions reporting form will be attached to the CoA, meaning it will only be accessible to the LME, the owner of that metal, and the warehouse at which that metal is stored (if the material goes on warrant). We realise that some stakeholders consider certain data to be commercially sensitive, and the information will only be made publicly available (via LMEpassport producer profiles) if the producer consents by ticking a box upon upload to LMEpassport.
Similar to CBAM data, any voluntary upload of IAI-aligned data will be attached to the CoA through LMEpassport.
Additional ESG information
The LME will also facilitate voluntary emissions reporting in line with the IAI Aluminium Carbon Footprint Methodology This appears as an additional tab on the LME emissions reporting form and producers can voluntarily opt to fill this out in addition to the “Mandatory” tab.
Similar to CBAM data, any voluntary upload of IAI-aligned data will be attached to the CoA through LMEpassport.
Extension beyond Aluminium, Alloy and NASAAC
The LME will not extend its rules beyond Aluminium, Alloy, and NASAAC, in line with EU requirements.
We recognise 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.
