Displaying items by tag: Government
Belgium: Cembureau, the European Cement Association has welcomed the adoption of the European Parliament reports on the European Union (EU) Emission Trading Scheme (ETS) and the EU Carbon Border Adjustment Mechanism (CBAM).
Koen Coppenholle, the chief executive officer of Cembureau, said “Our sector needs a coherent and predictable regulatory framework to deliver on its carbon neutrality ambitions. The texts adopted today offer significant improvements on key issues – such as the reinforcement of CBAM, the inclusion of indirect emissions, the need for a strong export solution for CBAM sectors, the inclusion of waste incineration in the EU ETS and the support for key breakthrough technologies - which we welcome.” He added that the association regretted the compromise reached suggesting delaying the implementation of the CBAM by one year as cement imports into the EU were growing “exponentially”.
Eurostat data cited by Cembureau shows that EU cement imports have increased by 300% in the past five years from 2016 to 2021, with specific spikes when the EU carbon price was at its highest level. The association is lobbying for what it calls a ‘watertight’ CBAM and a ‘realistic’ with the phase-out of free allocation of carbon credits to cement producers.
World Economic Forum and GCCA report identifies the countries that are prioritising green public procurement
24 June 2022UK: The World Economic Forum and the Global Cement and Concrete Association (GCCA), in collaboration with Boston Consulting Group (BCG), have released a Mission Possible Partnership Report which identifies the nations that are prioritising green public procurement. These are the Netherlands, Sweden, Germany, France, the UK, and select US states. The report titled ‘Low-Carbon Concrete and Construction - A Review of Green Public Procurement Programmes’ identifies a framework for how these six countries are demonstrating leadership in green public procurement of concrete and construction.
The first component of the framework is the foundation, which includes establishing standards for reporting emissions, databases and tools for tracking emissions and establishes baselines. The second part of the framework, procurement polices, builds upon and reinforces the foundation by setting policies that require environmental disclosures, mandate carbon limits, and incentivise low-carbon design, and use of low-carbon materials.
Approximately 7% of global carbon emissions come from cement, and about half of the cement used globally is procured by the public sector. Governments also spend US$11tn/yr on procurement, about 12% of global gross domestic product (GDP) and regulate the construction industry via building codes. Therefore, governments play a critical role in driving demand to decarbonise the concrete and construction sector to achieve net zero goals.
Matt Rogers, the chief executive officer of the Mission Possible Project said “The demand signals in the market for green industrial products are among the most important opportunities to accelerate the path to net zero across industrial sectors. For material sectors like cement and concrete, government procurement practices will play an especially important role. This report summarises the current best practices in government procurement for green cement across multiple markets. Insights like these provide the government procurement professionals practical tools and technical insights that they can use today to create demand-pull for the most innovative low carbon cement and concrete offerings in the market.”
PCA opposes pause to US petrol tax
24 June 2022US: The Portland Cement Association (PCA) has opposed a proposed federal temporary suspension to a petrol tax. PCA president and chief executive officer (CEO) Mike Ireland said, “Pausing the federal gas tax is the wrong decision at the wrong moment. Gas tax revenues fund the Infrastructure Investment and Jobs Act (IIJA), which is a once-in-a-lifetime opportunity to remake American industry and infrastructure with sustainability at its core. Removing the funding from the gas tax will strangle the IIJA before it is even up and running.”
The passage of the IIJA has coincided with PCA's launch of its Roadmap to Carbon Neutrality, which outlines the steps needed to achieve carbon neutrality across the entire cement-concrete-construction value chain by 2050. The PCA says that implementing the changes in its roadmap will require ‘significant’ funding such as those generated from the petrol tax.
Cemex fined US$89,000 for omitted transactions
21 June 2022Mexico: The Mexican Federal Economic Competition Commission (COFECE) has fined Cemex US$89,000 for failing to notify it of a transaction that exceeded the threshold for notification. COFECE also approved the transaction in question.
Cemex has the right to seek legal recourse against the fine.
Australia: Adbri is part of a consortium of eight Australian industrial manufacturers, developers and port operators collaborating with AGL Energy on a feasibility study for a green hydrogen plant at the site of the latter’s Torrens Island power plant in South Australia. AFR Online News has reported that any future hydrogen plant established by the partners would rely on solar and wind power, which has large potential in the region.
The South Australian government previously launched its first US$414m green hydrogen project in Whyalla in March 2022.
South Korean truck drivers end strike
15 June 2022South Korea: A truck driver strike has ended after seven days. The Korea Herald newspaper has reported that the government has agreed to extend a freight rate-based minimum wage system. The total cost to the cement industry was US$70.6m,
Benin: A local government department covering the Atacora and Donga regions has started forcing the closure of shops and depots that are not following central government-mandated price controls. Other infringements include failure to issue purchasing invoices or display the price properly, according to La Nouvelle Tribune newspaper. The government has implemented controls on certain commodities, including cement and vegetable oil, in reaction to rising prices.
Tamil Nadu Federation of Panchayat Presidents protests alleged unlawful cement plant practices
14 June 2022India: The Tamil Nadu Federation of Panchayat Presidents, an overarching organisation for local government leaders, has begun a protest against unlawful cement plant practices in the state. The New Indian Express newspaper has reported that the federation’s president Sellam Kadamban said that limestone mines and trucks are operating illegally, creating pollution and traffic collisions.
Argentina: The National Commission for the Defence of Competition (CNDC) has concluded an investigation into the cement industry with the finding that all four Argentinian cement producers colluded to maintain high prices between 2013 and 2018. Cementera Avellaneda, Holcim Argentina, Loma Negra and Petroquímica Comodoro Rivadavia (PCR) reportedly increased their sales by US$178m between 1 July 2017 and 30 June 2018 through cost overruns generated by their control of local markets.
The CNDC ordered the Portland Cement Manufacturers Association (AFCP) to refrain from distributing competitively sensitive information production, dispatches and imports information between its member companies.
US: The Global Cement and Concrete Association (GCCA) hosted chief executive officers (CEO)from across the global cement industry at its CEO Gathering in Atlanta, Georgia, on 9 June 2022. The event explored the best ways for the sector to progress towards net zero CO2 emissions. Speakers included: UN special advisor on climate Selwin Hart, US Department of Energy assistant secretary for fossil energy and carbon management in the Brad Crabtree, architecture firm Gensler CEO Diane Hoskins, Chair of Oil and Gas Climate Initiative (OGCI) executive chair Bjorn Otto and climate economist Gernot Wagner.
GCCA CEO Thomas Guillot said “To achieve net zero and enable the delivery of the sustainable built environment of the future, there needs to be ongoing engagement and deeper collaboration between our industry and government in the years ahead. Targeted government policy will be vital to removing barriers and to expediting our industry’s decarbonisation plans.”