Mineral Products Association warns of cost burden of climate policy on UK cement industry

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UK: Pal Chana, the Executive Director of the Mineral Products Association (MPA), has warned of the cost burden from the implementation of climate change and energy related policies on the cement industry. He made the comments as part of the launch of the association’s 2016 Annual Performance Report.

"The report highlights that one of the greatest threats to the UK cement industry currently and in the near future is the considerable cumulative cost burden from the implementation of climate change and energy related policies, which we estimate are going to increase by 40% to 2020 even with the limited discounting provided by Government. If action is not taken to protect the UK cement sector from these rising costs, imports will increase, jobs will be lost and security of supply will be threatened,” said Chana. The MPA added that despite market improvements production is still 27% below the level it was in 2007.

In the report the MPA reveals that the cement industry has reduced its CO2 emissions by 23% against a 1998 baselines. However, both emissions from calcination and the combustion of fossil fuels rose year-on-year in 2015, the most recent year of reporting. Despite this, emissions of NOx, SO2 and dust were all reduced or stabilised and waste fuels usage showed improvement. The MPA also said it was concerned that policy drivers, such as those incentivising the use of biomass in other sectors, is increasing the competition for limited biomass resource. This could result in a market distortion with the potential to drive cement manufacture back towards coal use.

Last modified on 05 April 2017

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