Cement report says more work to do

The recently released Carbon Control and Competitiveness Post 2020: The Cement Report says there?s plenty more work to unlock emission reductions for the cement sector.
It concludes that the European Union Emissions Trading System (EU ETS) is essential to guide and incentivise industry but on its own is insufficient to unlock the emission reduction potential in the cement sector. 
Co-ordination and adaptation of existing and new policies are required to enable the realisation of low carbon options. This includes enabling policies like codes and standards, engaging policies like labelling and reporting, and support for investment in carbon capture storage, innovative materials and new building practices, as well as an effective carbon price.
?Cement industry top management now has little confidence in the EU ETS,? Karsten Neuhoff, from the German Institute for Economic Research (DIW Berlin) said. ?Structural reform is needed to help investment in energy efficiency and innovation and reduce energy costs and carbon emissions in Europe.? 
Neuhoff was lead author of the report released by the international research network Climate Strategies which convenes networks of academic experts around specific climate change policy challenges and so offers independent research.
Slumping relevance
The report looked at the experience of the European cement sector with the EU ETS and other energy and climate policy instruments. The EU ETS was a key focus of attention from top management in its early years but its relevance has slumped. 
Carbon intensity of cement production has improved by three to five per cent in total but mainly as a result of incentives outside the EU ETS. According to the report, without any significant cost pass through, major mitigation options cannot be pursued because customers are unlikely to select other cement types with lower clinker content in the absence of economic incentives.
Companies will not develop new low carbon cement types without prospects of future market demand and the building industry currently has limited incentives for using cement more efficiently.
?There are large mitigation potentials which could be incentivised with the right policy structure, without driving the industry abroad,? Bruno Vanderborght, a former senior executive in the cement sector and a co-author of the report, added.
Source: Climate Strategies, Aggregate Research

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