Readiness key takeaways Technology 2 –CCUS, the major decarbonization lever, is still in the prototype stage (TRL 6).342 –Material-recycling technologies are in the demonstration stage (TRL 7) and electrification and hydrogen are at the prototype stage (TRL 5).343 Infrastructure 1 –CCUS infrastructure capacity required by 2050 is between 1.2-1.6 Gt344 of CO2 per year, with less than 1% currently available for the production of low-carbon cement. –By 2050, 624 GW of clean power and 6 Mt of hydrogen infrastructure is required.345 Limited progress in incorporating hydrogen, clean power and CCUS led to a decline in score this year. Demand 2 –The share of current near-zero emissions clinker production for cement is less than 1%.346 –The green premium is estimated at 50-70% for B2B and 1.5-3% for B2C.347 Capital 2 –Over $51 billion348 in additional annual investments are required by 2050 by the cement sector, mainly for the installation of CCUS equipment. –Currently, the cement sector has an annual CapEx of $147 billion.349 –The score increased from last year, as current capital levels increased, leading to an additional 35% of annual CapEx needed, compared to 71% previously.350 Policy 3 –The policies focus on reducing emissions through carbon pricing mechanisms and energy efficiency improvements. Several governments are also introducing roadmaps to guide the industry towards cleaner practices. Sector priorities Company-led solutions Mid-term (by 2030) –Use SCMs and low-carbon fuels to replace traditional fossil fuels in kilns. –Enhance production processes and promote resource- efficient manufacturing and material efficiency.Long-term (by 2050) –Upgrade equipment and processes to improve energy efficiency. –Implement CCUS systems at kiln facilities to capture CO2 emissions. Ecosystem-enabled solutions Mid-term –Build supply chains of SCMs and low-carbon fuel and facilitate their adoption.Long-term –Invest in the development of infrastructure for clean hydrogen and CCUS. –Invest in material recycling technologies. Net-Zero Industry Tracker: 2024 Edition 3

Net Zero Industry Tracker 2024 Cement