Net Zero Industry Tracker 2024 Cement

The cement sector faces significant challenges in decarbonization, with key technologies still in early stages. CCUS, a major decarbonization tool, remains in the prototype stage (TRL 6),363 while material recycling is at TRL 7364 and electrification and hydrogen solutions are in the prototype phase (TRL 5).365 By 2050, the sector will need infrastructure capable of capturing 1.2-1.6 Gt366 of CO2 annually, but current capacity is less than 1%.367 Additionally, 624 GW of clean power and 6 Mt of hydrogen infrastructure will be required.368 Green premiums are high, with a 50-70% premium for CCUS cement sold to concrete producers and 1.5-3% for end consumer such as homeowners.369 Policy efforts focus on carbon pricing and energy efficiency, while roadmaps guide cleaner practices. The industry needs over $51 billion370 in additional annual investments by 2050 (primarily for CCUS), though the current CapEx of $147 billion has improved, with only 35% now needed for these investments (down from 71% previously).371 Overall cement demand is expected to reduce by 5%372 by 2050, whereas demand share will increase in regions that encounter difficulties in decarbonizing cement. To achieve net-zero emissions by 2050, the cement sector must adopt a multi-faceted approach to emissions reduction. Key drivers include improving material efficiency, enhancing energy efficiency and shifting towards cleaner fuels such as bioenergy, hydrogen and electrification. The two most critical levers for significant emissions reduction are the adoption of CCUS and the use of SCMs. CCUS has the potential to capture the vast CO2 emissions from cement production, which is particularly crucial for this energy-intensive industry. SCMs, on the other hand, can reduce the reliance on clinker (the most carbon-intensive component of cement) by incorporating lower-carbon alternatives. Together, these technologies, supported by other fuel shifts and efficiency improvements, will be essential to driving deep decarbonization in the cement sector. Decarbonization levers and top mitigation methods (NZE Scenario) FIGURE 48CO2 emissions, Gt CO2Top three mitigation methods 2022 2030 2050 CCUS Expected to reduce emissions by 52% Material efficiency Expected to reduce emissions by 23% Bioenergy Expected to reduce emissions by 9% Increase in demand CCUS Other fuel shifts Electrification Hydrogen Bioenergy Energy efficiency Material efficiency+7% +7% -96%-26% 1.01.5 0.52.02.53.0 0 Source: Accenture analysis based on data from IEA. 5 Net-Zero Industry Tracker: 2024 Edition