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4.3 Finances

4.3.1 Fjarðaál annual export

Relates to the following UN World Goals

8. Góð atvinna og hagvöxtur

Relates to the following subgoals

8.1

Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries.

8.2

Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors.

Progress

 
Sustainability.is
Figure 1. Total export from Fjarðaál as a percentage of total annual export from Iceland.

 

 
Sjálfbærni.is
Figure 2. Net export from Fjarðaál as a percentage of total annual exports from Iceland. Calculated as Fjarðaál expenses in Iceland compared to total annual export from Iceland.

 

Updated: July 25, 2023
Source: Alcoa Fjarðaál

Metrics, Targets and Monitoring Protocol

What is measured?

Total export from Fjarðaál as a ratio of total export from Iceland.

Monitoring Protocol

Indicator is updated annually.

Targets

Target is not applicable. Will report data.

Possible countermeasures

Not applicable, monitoring only.

Changes of indicator

At the initiative's annual meeting on May 3, 2016 the following change was approved

Table 1. Changes accepted in annual general meeting 2016 on "What is measured?".
Orginal text Changed text

Net exported products from Fjardaál as a percent of annual exports from Iceland (ISK/year).

 Total export from Fjarðaál as a ratio of total export from Iceland.

Rationale for change: Ágústa Björnsdóttir, specialist at Alcoa Fjarðaál proposed this change at the annual meeting in 2015. There is no definition available for the concept "net export" and the closest approach is to define it as expenses payed to Icelandic parties. By dividing total export from Iceland with that number we are comparing unrelated numbers. The proposal was discussed in group discussion at the same meeting and the conclusion was to refer it to the steering group which decided to bring it to 2016 annual meeting for approval.

This indicator was originally number 11.1. It was then named Alcoa annual exports and can be found under that number in documents of the project from 2005 and 2006.

The indicator number has been changed twice.

Table 2. Changes to name and number of indicator
Year Nr. Indicator name
2020 4.3.1 Fjarðaál annual export
2007 3.2 Fjarðaál annual export

Baseline

In 2003, Iceland ran a negative balance of trade as it had done since 1996.

Table 3. Annual External Trade for 2003
Exports (Million ISK) % of Exports from Alcoa Imports (Million ISK) Balance of Trade (Million ISK)
182.580 0 216.525 -33.945

Heimild: Hagstofa Íslands, 2003

Rationale for Indicator Selection

The Fjarðaál aluminum smelter is anticipated to produce 346 thousand tons of aluminum a year for export. The impact of the smelter on Iceland's exports and balance of trade is likely to be significant. Monitoring the degree of influence of Alcoa's exports on Iceland's balance of payments will help assess the long term economic situation of Iceland's balance of trade.

The Fjardaál aluminium smelter is anticipated to produce 322 thousand tons of primary aluminium a year with the market for production being primarily based in Europe and, to some degree, North America. The impact of the smelter on Iceland’s exports and balance of trade is likely to be significant. Monitoring the degree of influence of Alcoa’s exports on Iceland’s balance of payments will help assess the long term economic situation of Iceland’s balance of trade. 

From phase I/II report on indicators and baseline from April 2005