Gregory, Lord Barker, told Fastmarkets during a webinar interview this week that levying a tax on the carbon content of fuels would make it more expensive to produce or consume fossil fuels and products with a high-carbon footprint, driving a price differentiation.
But a sizeable premium on the price of low-carbon metal, known as green aluminium, would not necessarily emerge in the near term, he said.
“We do not anticipate that there will be a huge premium in the short term. It may emerge – that would not be bad news for [En+ Group]. But what I think will emerge, and what I think will be a very serious element to pricing, is a cost on carbon,” he said.
“At the moment, aluminium sits outside that world,” he added, “but if you see a price on carbon that is going to be sufficient to drive the low-carbon transition - and not...