Displaying items by tag: Cement Association of Canada

Canada: The Cement Association of Canada (CAC) says that provisions for investments and supportive measures in the government’s Fall Economic Statement 2023 will help to ensure the successful roll-out of carbon capture, utilisation and storage (CCUS) for industrial decarbonisation. The statement commits the government to advancing a CCUS Investment Tax Credits (ITC) scheme.

CAC president and CEO Adam Auer said “We commend the government’s recognition of the importance of CCUS in achieving our climate objectives. The cement industry is committed to reducing its carbon footprint, and these investments will facilitate the deployment of innovative technologies that are essential for achieving our Concrete Zero sustainability action plan objectives.”

Canada: The Cement Association of Canada (CAC), with its members and partners in the concrete sector, has released Concrete Zero, an action plan to help the local cement and concrete sector reach net-zero CO₂ emissions by 2050. The five priority areas it is focusing on include: eliminating the use of coal and petroleum coke as fuel sources for clinker production; reducing the volume of clinker used to produce cement; increasing the use of supplementary cementitious materials; working towards building carbon capture, utilisation and storage capacity; and advocating for performance-based codes, standards and specifications, procurement policies and increased material efficiency in construction. Targets include reaching a 100% fuel mix from non-fossil-based sources by 2050. The latest plant follows the goal of achieving a 40% emissions reduction by 2030 as part of its Roadmap to Net-Zero Carbon Concrete by 2050.

Adam Auer, the president and chief executive officer of CAC, said “Our net-zero action plan is ambitious and cannot be achieved by industry action alone. Working with government, industry, and partners in the design, architecture, and construction industry will be essential for success. Canada’s cement and concrete industry are committed to doing our part to help Canada build a better, cleaner future. Working together, we can deliver Concrete Zero.”

Canada: The Cement Association of Canada (CAC) said that it is 'confident that Canada will lead in building clean technologies for a sustainable future' following the publication of the government's Budget 2023 on 29 March 2023. The budget includes US$26bn-worth of green tax credits. US$19.2bn-worth of this is allotted to renewable energy. It also includes a final design for Canada's Investment Tax Credit for Carbon Capture, Utilisation and Storage (CCUS). CAC president and CEO Adam Auer said that, when finalised, the budget will help to 'close the gap' between existing Canadian legislation and incentives offered under the US Inflation Reduction Act and EU Green Deal Industrial Plan.

Auer said “With close to 60% of our emissions resulting from the immutable chemistry of making cement, deep investment in innovative and expensive technologies, like CCUS, are both vital and unavoidable. With Budget 2023, the government clearly affirmed its understanding of the final role this technology plays in our industry’s efforts to reach net-zero." He continued “We were also pleased to see references to carbon contracts for difference (CCfD). Canada’s cement companies, like many industries in Canada, are part of large multinationals, and divisions must compete within their companies for projects. Investing in net-zero projects requires predictability. The certainty that CCfDs can provide is the difference between attracting investment, building projects and creating clean jobs - or conceding the opportunity to our competitors."

Canada: The government and the Cement Association of Canada have published the ‘Roadmap to Net-Zero Carbon Concrete by 2050.’ The document details how cement and concrete producers and legislators could achieve net-zero CO₂ emissions from the cement and concrete sector by 2050. The joint government-industry working group next plans to release an action plan explaining how the sector will reduce its CO₂ emissions by up to 40% by 2030 and a plan for research and development required to meet the 2050 target. The country’s cement and concrete industry says it has committed to reducing over 15Mt of greenhouse gases cumulatively by 2030 and achieving net-zero by 2050.

“Decarbonising concrete is a necessity, and Canada’s cement and concrete industry has demonstrated that it is up to the task. This roadmap demonstrates our industry’s leadership in CO₂ emissions reduction and positions us to achieve our goal of net-zero cement by 2050,” said Marie Glenn, chair of the Cement Association of Canada. Association president and chief executive officer Adam Auer added, “While we are steadfast in our commitment to reduce our emissions by 15MT cumulatively by 2030 and reach true net-zero by 2050, we know we can’t do it alone. Together in collaboration with government we will continue to support the innovation and investment needed on our path to delivering net-zero concrete, while at the same time preserving its properties as a durable, resilient, versatile, and cost-effective material.”

Canada: The Cement Association of Canada has appointed Sarah Petrevan as its Director of Sustainability. She previously worked as the Policy Director for Clean Energy Canada and the Friends of the Greenbelt Foundation. She is a graduate of Victoria University in Toronto.

Canada: The Cement Association of Canada (CAC) has appointed Adam Auer as its next president and chief executive officer (CEO) with effect from the start of April 2022. He will succeed long-standing president and CEO Michael McSweeney, who has held the post for 12 years. McSweeney will remain as a strategic advisor to Adam Auer until the end of June 2022.

Auer holds over 20 years’ experience as a sustainability professional working with public, private and non-profit institutions. As the CAC’s Vice President of Environment and Sustainability he has worked with government, industry, environmental and other civil society groups to promote and enhance concrete’s contribution to sustainability, with a specific emphasis on life cycle approaches to climate change mitigation and adaptation. Prior to joining the CAC in 2012, Auer managed Environment Canada’s Corporate Environmental Innovation initiative, a multi-stakeholder program to promote the business and financial case for corporate environmental leadership and the link between sustainability and an innovative and competitive economy. He holds a Master of Environmental Studies from York University and a Bachelor of Science in Ecology from the University of British Columbia.

Little trickles of detail about the European Union’s (EU) proposed carbon border adjustment mechanism (CBAM) started to emerge last week. The key bit of information that Bloomberg managed to squeeze out of their source was that a transition period with a simplified system is being considered from 2023 and then a full version could turn up in 2026. Cement importers, and those in selected other heavy industries, would be required to buy electronic emission certificates at prices corresponding to those in the EU emissions trading scheme (ETS). Other titbits include: that the prices will be set on a weekly basis based on the average carbon permit price within the EU that week; a default value will be devised for importers who can’t back up their emissions data; and imports from a country with its own carbon pricing scheme will be entitled to a discount. The plans are due to be made public in mid-July 2021. Debate is then expected to follow before approval will be required from the European Parliament and member states.

The detail isn’t out there yet but the CBAM is set to collide with trade agreement territory. For example, how the draft agreement tackles issues such as exports from Europe and whether importers should be compensated for not receiving a free allocation of carbon credits could be seen to offer competitive advantage to one party or another. Climate policy will clash with trade policy once or if the CBAM makes in into law. At this point countries that import cement into the EU may start trying to negotiate or complaining to the World Trade Organisation. One previous example of climate policy bashing into trade agreements is when the EU tried and failed to apply the ETS to aviation in the early 2010s. The experience from this incident is expected to inform the European Commission’s approach on the CBAM.

Outside the EU, new carbon pricing schemes have been popping up all over the place and various cement associations are creating or refining their own carbon neutral plans. Last week in North America, for example, the Cement Association of Canada said it was working with the government on launching a roadmap by the end of 2021. In the US, the Portland Cement Association (PCA) has also been hard at work to publish its own roadmap by the end of 2021. Meanwhile, over in the oil sector there were a couple of victories for activist shareholders in May 2021 with Shell, Exxon Mobil and Chevron all being forced to make changes to their climate change polices by courts and activist investors. This makes one wonder how long it will be before the same thing happens to cement companies.

All this increases the pressure between trading agreements and climate legislation. One of the questions that has popped up at Global Cement’s webinar series has been whether attendees thought that a global carbon pricing and/or trading scheme might be a realistic position or not (the majority said ‘yes’ within 20 years). Yet the EU CBAM, all these sustainability plans and continued pressure by investor activist don’t happen in isolation. They occur in an interconnected world.

So it was both non-surprising and eye-popping to discover recently that a private carbon exchange is being prepared in Singapore for a launch by the end of 2021. Climate Impact X (CIX) is being backed by DBS Bank, Singapore Exchange, Standard Chartered and the Singapore-government owned investment company Temasek. As for which companies would actually voluntarily enter into a scheme that would actively reduce profits, the answer lies above. Any organisation looking to trade between carbon pricing jurisdictions might well have an economic incentive to find a truly international scheme that was reputable. Or, perhaps, a publicly owned company dealing in carbon-intensive products might be bullied into one by its activist investors. The focus on such an exchange being reputable is essential here, given the potentially large amounts of money that could be involved and the mixed views on existing carbon offsetting schemes. CIX says it will use satellite monitoring, machine learning and blockchain technology to ensure the integrity of its carbon credits and this is certainly thinking in the right direction. Until it arrives though, we wait to see the detail on the EU CBAM.

Canada: The Cement Association of Canada (CAC) and the government have published a joint statement detailing their plant to develop a roadmap to net-zero carbon concrete. When launched in December 2021, the roadmap will provide Canadian cement producers with the policies, tools and technologies to contribute to the achievement of net-zero concrete by 2050. The plans will cover areas including: supporting the low-emissions building materials supply chain, building an innovative opportunities framework and engaging stakeholders. According to the statement, the roadmap will offer total potential CO₂ reduction of 15Mt by 2030, and 4.0Mt/yr thereafter.

The partnership will establish a CAC-led Industry-Government Working Group in collaboration with the National Research Council the Standards Council of Canada and Innovation, Science and Economic Development. Among its tasks will be the publication of updated environmental product declarations.

Canada: The Cement Association of Canada (CAC) and Rediscover Concrete have issued a joint declaration to the federal government in which they urge it to absorb the costs of state infrastructure projects and put construction ‘at the core of the COVID-19 recovery plan.’

CAC president and chief executive officer (CEO) Michael McSweeney said, “A successful economic recovery will require a commitment to use time-sensitive infrastructure spending. We have a very short construction season in Canada and municipalities have lost much of their financial capacity to fund important infrastructure projects this year. We need the federal government to help municipalities get local community infrastructure projects going to boost economic activity and public confidence.”

Canada: The Cement Association of Canada has supported emission reduction schemes in Alberta and Ontario. The Albertan provincial government has released its overarching policy framework for the Output-based Allocation System and the Ontario government has run its fourth and final cap and trade auction before formally linking with California and Quebec in 2018.

The introduction of an Output-based Allocations (OBA) System in January 2018 will transition Alberta’s regulated facilities from the current Specified Gas Emitters Regulation (SGER). The OBA will set an industry specific performance benchmark for emissions-intensive, trade-exposed industries (EITEs), which includes the province’s two cement plants, Lafarge in Exshaw and Lehigh in Edmonton. The benchmark combined with output-based allocations is intended to drive best-in-class performance while maintaining the competitiveness of industries in Alberta.

Ontario raised US$330m bringing total proceeds from the system to date to around US$1.5bn. The proceeds are to be reinvested into initiatives that will further reduce greenhouse gas emissions.

“From the cement industry’s perspective, the framework demonstrates that the Alberta government understands the pressures EITE industries face to remain competitive in the global market. Climate change is the single most important issue facing our society today and Alberta’s Climate Leadership Plan lays the foundation for industries to play a major role in assisting government in meeting its 2030 targets and transitioning to a low carbon economy,” said Michael McSweeney, President and chief executive officer (CEO) of the Cement Association of Canada.

With respect to Ontario he added that the Canadian cement industry believes that cap and trade systems are the most effective means of delivering environmental results while putting a price on carbon. “Linkage with California and Quebec is also an important feature of the Ontario system: the broader the market, the more likely it will be that price will reflect the true incremental cost of reducing emission,” said McSweeney.