Net Zero Industry Tracker 2024 Cement

PolicyCEMENT Global cement production is concentrated, with China accounting for 51%395 of the total output in 2022, followed by India, the EU and the US. This highlights the critical need for targeted and effective policies to curb emissions in major cement-producing regions. Given the sector’s significant contribution to global CO2 emissions, a robust policy framework is essential to drive decarbonization and support the transition to low-carbon production methods, such as allowing certain SCMs to be used in building codes. The adoption of standardized carbon accounting frameworks, clear scope definitions and consistent system boundaries will play a crucial role in promoting transparency and accountability across the cement industry. These measures ensure accurate emissions reporting and compliance with industry-wide sustainability targets. Initiatives from global industry bodies, like the Global Cement and Concrete Association (GCCA),396 emphasize the importance of collaboration and the sharing of best practices in decarbonization efforts. Additionally, initiatives on standards harmonization like the Industrial Deep Decarbonisation Initiative (IDDI)397 aim to spur early demand for low- and near-zero-emission products through green public procurement commitments. Cement industry policy summary TABLE 13 Policy type Policy instruments Key examples Impact Market-basedCarbon price Canada’s Output-Based Pricing System (OBPS)398Large industrial facilities like cement plants are required to pay a price on carbon pollution, but receive output- based allocations to protect against competitiveness impacts, encouraging them to reduce emissions while remaining economically viable. Border adjustment tariffEU Carbon Border Adjustment Mechanism (CBAM)399To prevent carbon leakage (the relocation of cement production to countries with less stringent climate policies), the EU is implementing a CBAM. Product standard India’s BIS 1489 Standard400The Bureau of Indian Standards (BIS) regulates the quality of blended cement in India, promoting the use of Pozzolana and other supplementary materials to lower the carbon intensity of cement. Mandate-basedDirect regulations EU Industrial Emissions Directive (IED)401The cement sector is subject to stringent emissions limits set by the IED, which controls pollutants such as nitric oxides (NOx), sulfur oxides (SOx) and particulate matter. Direct regulations China’s National Standard on Air Pollutants for the Cement Industry402China enforces regulations that limit the emissions of dust, SOx and NOx from cement plants. Non- compliance results in fines and possible plant closures. Government targets India’s 2070 Net-Zero Pledge403India has set long-term targets for reducing the carbon intensity of its economy, which includes initiatives to decarbonize the cement industry by transitioning to more efficient processes, renewable energy and CO2 capture technologies. Incentive-basedSubsidies Germany’s decarbonization in industry programme404The programme provides financial assistance to implement innovative decarbonization technologies, supporting industries’ transition to net-zero emissions. Direct R&D funds/grantsUS Department of Energy’s Advanced Research Projects Agency- Energy (ARPA-E)405ARPA-E has allocated funds specifically for developing carbon-reducing innovations in industrial sectors such as cement. Grants support cutting-edge research in process innovation, energy efficiency and carbon capture. Direct R&D funds/grantsUS Department of Energy’s Industrial Demonstrations Program406By funding large-scale projects that demonstrate the feasibility of cutting GHG emissions, the programme incentivizes the adoption of cleaner technologies, such as carbon capture, low-carbon fuels and advanced manufacturing methods. Net-Zero Industry Tracker: 2024 Edition 11