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Climate activist Greta Thunberg memorably summarised the outcome of the 2021 United Nations (UN) Climate Change Conference (COP26) as “blah, blah, blah” but what did it mean for the cement and concrete industries?

Making sense of the diplomatic language the UN uses is a full time job due to its impenetrable jargon. This is partly why climate activists and others may have become jaded about the outcome of the world’s biggest climate change jamboree. The conference of the parties (COP) tried desperately to hang on to the 1.5°C warming aim set at the Paris event (COP21) in 2015. This is dependent though on countries sticking to their 2030 targets and becoming net-zero by 2050 or earlier. Unfortunately, both China and India, two of the world’s current top three CO₂ emitters, have announced net-zero dates of after 2050. Those two countries also drew fire in the western press for weakening the language used in the COP’s outcome document about the ‘phasing out’ or ‘phasing down’ of coal use. However, simply getting coal written on the final agreement has been viewed as a result. Other positive outcomes from the event included commitments for countries to review their 2030 targets in 2022, progress towards coordinating carbon trading markets around the world and work on adaptation finance from developed countries to developing ones.

The headline results from COP26 carry mixed implications for the building materials sector. The Paris agreement (COP21) has already achieved an effect in the run-up to COP26 by prompting the cement and concrete industries to release a roadmap from the Global Cement and Concrete Association (GCCA) in October 2021. Now it’s down to whether individual governments actually follow the targets and how they enforce it if they do. If they don’t, then the response from building material producers is likely to be mixed at best.

What may have a more tangible effect is the work on carbon markets at COP26. Countries were finally able to complete technical negotiations on the ‘Paris Agreement Rulebook,’ notably including work on Article 6, the section that helps to govern international carbon markets and allows for a global carbon offsetting mechanism. The European Union (EU) Emissions Trading Scheme (ETS) has shown over the last year how a high carbon price may be able to stimulate companies to invest in mitigation measures such as upping alternative fuels substitution rates and developing carbon capture and storage/utilisation projects. Critics would argue that it may simply be offshoring cement production and closing local plants unnecessarily. Making a more global carbon trading scheme work amplifies both these gains and risks. Either way though, having an international framework to build upon is a major development. Finally, work on adaptation finance could have an effect for cement producers if the money actually makes it to its destination. The big example of this announced at COP26 was a US$8.5bn fund to help South Africa reduce its use of coal. It is mainly targeted at power generation but local cement producers, as a major secondary user of coal, are likely to be affected too.

Alongside the big announcements from COP26 lots of countries and companies, including ones in the cement sector, announced many sustainability plans. One of these included the launch of the Industrial Deep Decarbonisation Initiative (IDDI) during COP26 by the governments of the UK, India, Germany, Canada and the UAE. This scheme intends to create new markets for low carbon concrete and steel to help decarbonise heavy industry. To do this it will disclose the embodied carbon of major public construction projects by 2025, aim to reach net zero in major public construction steel and concrete by 2050, and work on an emissions reduction target for 2030 which will be announced in 2022. Other goals include setting up reporting standards, product standards, procurement guidelines and a free or low-cost certification service by 2023.

All of this suggests that the pressure remains on for the cement and concrete sector to decarbonise, provided that the governments stick to their targets and pledges, and back it up with action. If they do, then the industry will remind legislators of the necessity of essential infrastructure and then continue to ask for financial aid to support the development and uptake of low carbon cements, carbon capture and whatever else. Further adoption of carbon markets around the world and global rules on carbon leakage could help to accelerate this process, as could adaptation finance and global standards for low carbon concrete. The next year will be critical to see if the 1.5°C target survives and the next decade will be crucial to see if global gross cement-related CO₂ emissions will actually peak. If they do then it will be a case of ‘hip hip hurrah’ rather than ‘blah blah blah’.

Denmark: FLSmidth has appointed Mikko Keto as its incoming chief executive officer (CEO), with effect from the start of 2022. It follows the resignation of Thomas Schulz. He will leave the company for an external role at the end of 2021.

Keto joined FLSmidth in January 2021 as the president of the mining division. He previously worked for Metso as the president for its mineral services and pumps business area. His prior roles for Metso include Senior Vice President of Spare Parts, Senior Vice President of Performance Services, President of Automation Services and Vice President of Flow Control Services. He also served as a member of the company’s executive team. Earlier in his career, Keto was Head of Sales for the maintenance business unit at KONE Corporation and held senior management and sales positions at Nokia Networks. He holds a master’s degree in economics from the Helsinki School of Economics.

Outgoing CEO Schulz joined FLSmidth in 2013. The company credited him with transforming its model from a predominately capital project organisation to one with more of a focus on service and aftermarket. His tenure has also seen the engineering company pivot towards digital products and those supporting sustainability trends in the cement and mining industries.

Mexico: Corporación Moctezuma has appointed Juan Mozo Gómez as its chief financial officer with effect from the start of 2022. He succeeds Luis Rauch, who has decided to leave the post after four years for personal reasons. Mozo has experience in the financial sector and held positions in companies in the cement and concrete industry. He holds a degree in Business Administration from Pompeau Fabra University in Spain.

Nigeria: Dangote Cement has reported that Alhaji Sani Dangote died on 14 November 2021. He was the brother of the company’s founder and chair Aliko Dangote.

Sani Dangote was a businessperson with over 30 years’ experience in various sectors of the Nigerian economy including manufacturing, agriculture and oil services. He was the Vice President of Dangote Industries and sat on the board of several other companies. He was also the deputy chair of the African Gum Arabic Producers Association, a fellow of the Nigeria Institute of Shipping and president of the Fertiliser Producers and Suppliers Association.

Brazil: Members of the Brazilian National Cement Industry Association (SNIC) have committed to a 34% reduction in the CO₂ emissions of their cement production to 375kg/t by 2050 from 564kg/t in 2019. Ten cement producers including Cimento Tupi, CSN Cimentos, InterCement and Votorantim signed the commitment. With the industry's forecast rate of growth in cement production capacity, this will result in possible total CO₂ emissions of 45Bnt in 2050 compared to 36.7Bnt in 2020.

Planned CO₂ emissions reduction investments before 2032 are US$637m across the industry.

Brazil: Votorantim Cimentos’ revenue grew by 37% year-on-year to US$2.95bn in the first nine months of 2021 from US$2.15bn in the same period in 2020. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 67% to US$758m from US$455m. Cement sales volumes rose by 18% to 27.8Mt from 23.5Mt. The cement producer benefitted from strong growth in the first half of 2021, particularly in Brazil, although this has slowed somewhat. Notable acquisitions by the company so far in 2021 include an agreement to buy both Cementos Balboa and FYM’s Southern business in Spain and the completion of a deal to take control of McInnis Cement in Canada.

Overall the group’s net revenue rose by 32% to US$8.81bn from US$6.67bn. Its adjusted EBITDA grew by 70% to US$2.14bn from US$1.26bn. Cement-based revenue represented 44% of the total. The group attributed its result in the third quarter of 2021 to higher commodity prices and sales volumes.

Malaysia: The Ministry of Domestic Trade and Consumers Affairs has blamed a shortage of cement in the state of Sarawak, Borneo on high demand and a lack of shipping. State director Datuk Stanley Tan noted that many major construction projects had restarted work in 2021 following disruption caused by the nationwide movement control orders (MCO) caused by the coronavirus pandemic in 2020, according to the Malay Mail newspaper. He added that imports of raw materials for cement production had also been affected due to the limited number of ships that could cross the South China Sea.

The local government plans to work with local producer Cahya Mata Sarawak Berhad (CMS) on solving the problem. Together they hope to end the shortage of cement by December 2021.

Japan: Taiheiyo Cement plans to secure a captive power supply for its Saitama cement plant through the installation of a new gas-powered generator. The company says that electricity from the generator will replace purchased energy in the plant's operations. It is also in the process of constructing a new waste heat recovery (WHR) power unit at the facility. Taiheiyo Cement claims that both upgrades will result in a 62,000t/yr reduction in operations' CO₂ footprint. Construction is due to commence before 2022 in order for the producer to commission the new equipment in mid-to-late 2023.

Saitama cement plant's former coal and woodchip-powered generator exploded in April 2021. The producer said that work is on-going to prevent the incident's recurrence by investigating the causes of the accident and formulating preventative measures.

US: LafargeHolcimUS and its subsidiary Geocycle have successfully completed a barge shipment of 2000t of reclaimed bottom ash and fly ash from a pond at CenterPoint Energy’s AB Brown coal-fired power plant at Evansville in Indiana. The delivery is the first under a new 6Mt multi-year coal ash recycling contract with the energy provider.

LafargeHolcim US will use the coal ash to replace clay and sand in cement production at its Ste. Genevieve cement plant in Missouri. The producer says that this will help to reduce the plant's consumption of raw materials. LafargeHolcim US and Geocycle have invested US$80m in infrastructure to extract, process, transport, store and recycle ash from the power plant. Geocycle has managed the on-going joint recycling initiative between LafargeHolcim and CenterPoint Energy since 2009.

LafargeHolcim US's chief executive officer Toufic Tabbara said “This milestone is a tangible example of how industry participants together can develop creative and efficient solutions that contribute to the circular economy. Together, LafargeHolcim, Geocycle and CenterPoint Energy will avoid landfilling for power plants and reduce the consumption of non-renewable raw materials. This is a clear win-win for people and our planet.”

Spain: Turkey-based Çimsa has joined Oficemen, the Spanish Cement Industry Association. It follows its acquisition of Cemex’s Buñol white cement plant in June 2021, according to Europa Press. The agreement to buy the plant was delayed from 2019 due to the international aspects of the deal and competition concerns.