The European cement industry has failed to match the targets set by the EU Trading System (EU ETS) on carbon emissions.
According to an extensive report on the history and performance of the European cement sector and CO₂ published by CemBR, a research and intelligence provider in the global cement sector, the cement industry has not managed to attain the targets set by the EU ETS. The report analysed all integrated cement plants currently in the system. It also examined and explained all closures between Phase I and currently. The key findings from the report can be summarised as follows:
• The European cement industry has not managed to keep up with the targets set in all
phases of the EU ETS
• An overall CO₂ reduction of below 0.4% was achieved by the industry across all EU ETS phases so far
• The variation between countries in the scheme is significant ranging from 750 Kg CO₂ per tonne of clinker to 1,085 Kg of CO₂ per tonne of clinker
• Alternative fuels usage has increased but has failed to dent CO₂ figures due to low levels of biomass
• EU ETS has been generous with carbon allocations for the cement industry, especially during its first two phases, resulting in inconsistent behaviours between the various cement producers. CO₂ per tonne of clinker reductions have not been at the top of corporate agendas.
• Pricing of carbon credits coupled with the first year of deficit in the industry (2018) and the realisation of hitherto poor performance has now elevated this issue up the corporate agenda
• The variation between Northern Europe and Southern Europe is significant. The so called “olive line” separates two very different CO₂ outcomes.
• The financial impact of carbon credits is significant in the industry. Simulations suggest that EBITDA margins vary from 50% to -16% depending on the combination of sales/imports-exports/alternative fuels/actual capacity utilisation.
Numerous other findings can be found in the report, including some thoughts on the forthcoming Phase IV of the System, all backed by up to date, accurate and insightful data, research and analysis.
The report provides detailed data and insights on several aspects of the ETS and its impact on the cement industry as follows:
• What are the main sources of CO₂ in the cement process and how they might be mitigated?
• The whole history of the EU ETS and its various phases so far
• Country by country analysis with Phase III data and current year details
• Plant by plant analysis – current year details
• Financial impact of the EU ETS on the European cement sector
• Behaviour of the European cement sector with regards to the EU ETS impact
• Overall conclusions.
The report has 110 pages and examines 31 countries and 210 integrated cement plants.
Cement Business Research
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PR Contact: Fiona Lockhart
email: fiona@cementbusinessresearch.com
www.cementbusinessresearch.com
Cement Business Research (CemBR) is a research, data and insights provider in the global cement sector. CemBR was set up to provide “value for money” services to companies and institutions interested in accurate and granular intelligence in the global cement sector.
The team is made up of researchers, analysts, consultants and advisors with extensive experience, in more than 70 countries, working in the global cement sector – they do not work in any other sector.
