# Recycled Aluminium for MSMEs: How Secondary Metal Cuts Scope 3 Emissions

Canonical: https://senseible.earth/climate-intelligence/msme-aluminium-recycling-scope-3-savings

Published 2026-05-06.

Primary aluminium made with coal-based power, as in most Indian smelting, is among the most carbon-intensive common materials. Recycled aluminium needs only a small fraction of the energy, so its emissions are far lower. That reduction is available today, with no exotic technology.

## Why this matters now

| Driver | Why it tightens |
| --- | --- |
| CBAM (definitive period from 2026) | Aluminium is a CBAM good, so EU importers now pay for its embedded emissions |
| EU packaging recycling targets | Recycling-rate targets for aluminium packaging rise to 60% by 2030 |
| Large OEM supplier rules | Rising recycled-content expectations |

## What MSMEs can do

### Casting and extrusion units

Switch from primary ingot to secondary ingot from BIS-certified recyclers. Quality is suitable for many non-aerospace, non-pressurised applications; check the alloy specification. Compare the price against primary ingot.

### Component fabrication

Specify "minimum 70% recycled content" in PO terms with traceability certificate. Ask recyclers for ISO 14021 recycled-content declarations.

### Engineering MSMEs

Design for disassembly. Aluminium components that can be removed at end-of-life feed the recycle stream. Mark alloy on every part.

## The Scope 3 maths

For example, suppose a pump manufacturer uses 200 tonnes/year of aluminium, with illustrative factors of 16 tCO2e/t for primary and 0.65 tCO2e/t for recycled metal:

- 100% primary: 200 × 16 = 3,200 tCO2e Scope 3 Cat 1
- 70% recycled mix: 200 × 5.26 = 1,051 tCO2e Scope 3 Cat 1
- 100% recycled: 200 × 0.65 = 130 tCO2e Scope 3 Cat 1

A Scope 3 cut this large from a single procurement decision is rare. Aluminium is the textbook example. Steel is similar: the scrap-EAF route is much lower-carbon than the blast furnace route.

## How to verify supplier claim

Ask for:

- Mass balance certificate per batch
- Energy source declaration of recycler
- Third-party (BIS or QCI) audit reference

Run scenarios in the [Supplier Risk calculator](https://senseible.earth/calculators/supplier-emissions-risk).

## Related guides

- [What emissions data is hidden inside semi-finished imports?](https://senseible.earth/climate-intelligence/emissions-data-hidden-in-semi-finished-imports)
- [Scope 3 for Bangladesh Textile Exporters: What EU Buyers Need and How to Calculate It](https://senseible.earth/climate-intelligence/scope-3-calculator-bangladesh-textile-exporters)
- [Scope 3 Emissions in Your Supply Chain: MSME Calculator Guide](https://senseible.earth/climate-intelligence/scope-3-emissions-supply-chain-msme-calculator)