Global Cement Newsletter

Issue: GCW563 / 29 June 2022

Headlines


From 2027, the 27 member states of the European Union (EU) will begin to charge third country-based cement exporters for the CO2 emissions of their products sold inside the bloc. The new Carbon Border Adjustment Mechanism (CBAM) is a lynchpin in the strategy to reduce EU industries' CO2 emissions by 55% between 1990 and 2030. Starving foreign cement industries of a source of income may also help to make them change their ways. A regional solution leveraged through an unfair head start, however, might cause progress to falter where it is most needed in the global fight against climate change.

Carbon leakage has hung over the EU’s Emissions Trading Scheme (ETS) since its inception in 2005. Cembureau, the European cement association, reported a 300% five-year increase in third-country cement imports up to 2021, with spikes matching those in ETS credit prices. Companies from Turkey to Australia have produced and transported their cement into the EU, at great CO2 cost, while benefitting from a competitive edge over domestic producers, it would seem. Lawmakers rectified the situation by maintaining free allocations of ETS credits to EU industries, including cement, which received US$92m-worth in 2021.1 In the wake of the Paris Agreement, an emissions pricing mechanism on cement imports first came before a vote of the member states in February 2017.

In what would become a recurring theme, opposition from all sides of the issue defeated the proposal. Most interesting was the international response: Brazil, China, India and South Africa voiced ‘grave concern’ over the proposed CBAM. A Russian representative at the Department of European Cooperation lamented the possible necessity of ‘response measures,’ while US Climate Envoy John Kerry coolly urged the EU to wait until after the COP26 climate change conference in November 2021. The outbursts were surprising given that the mechanism clearly conformed to World Trade Organisation (WTO) rules: free allocations were always expected to phase out in a mirror image of the CBAM phase-in. The proposal eventually adopted on 22 June 2022 set the end date for both as 2032.

In 2020, the EU imported US$383m-worth of cement and concrete across its external borders, down by 17% year-on-year from US$463m in 2019.2 Imports had previously more than doubled decade-on-decade from US$204min 2009. China accounted for US$167m-worth (43%) of global cement and concrete exports to the EU in 2020, followed by Vietnam with US$34m (9%) and the UK with US$30m (7.9%). Other significant sources include Belarus (US$28m - 7.4%), Russia (US$13.8m - 3.6%), Bosnia and Herzegovina (US$13.5m - 3.5%), Serbia (US$13.1 million - 3.4%), Israel (US$13m - 3.4%), Turkey (US$12.6m - 3.3%) and the US (US$10.3m - 2.7%).

China

China’s first emissions trading scheme will be one year old on 16 July 2021. The scheme, covering more than twice the CO2 emissions accounted for under the EU ETS, may lend an apparent synergy to EU energy policy and that of the bloc’s main trade partner.3 On the contrary, Chinese carbon credits cost 8.5% the price of EU ETS credits on 29 June 2022, with a growth rate of just 10% year-on-year, compared to 53% in EU ETS credit prices. Unlike their European equivalent, they are also restricted to the energy sector. Chinese cement exporters are unready to meet the CBAM on its own terms. The inclusion of indirect emissions further disadvantages plants operating in China’s 57% coal-powered economy. Premier Li Keqiang has warned countries to be on their guard against a ‘new green trade barrier.’

These concerns ought to be considered in light of the scale and diversified nature of the China-EU trade partnership. The eventual inclusion of polymers, hydrogen and ammonia under the CBAM still does not extend its scope beyond 3% of Chinese imports to the EU by value, enabling China to retain the leverage it has previously proved willing to exercise against those who threaten the perceived interests of global trade.

China plans to reach net zero CO2 emissions by 2060 through an energy transition in which it invested US$266m in 2021, more than the next six ranked countries combined.4 In the medium-term future, the CBAM may become a green bridge, connecting with Chinese emissions reduction policies in a single carbon border measure to raise money for developing countries’ sustainable transitions, as suggested by former governor of the People’s Bank of China Zhou Xiaochuan. Until then, China seems well positioned to ensure that a fair share of the costs arising from the CBAM pass to importers and the consumer.

Turkey

Turkey provided 3.3% of the EU’s cement and concrete imports in 2020, but the volume corresponded to 13% of Turkey’s total exports of the same. Thus, the country has a high exposure to any adverse effects of the CBAM – quantified at an estimated US$789m/yr by the European Bank for Reconstruction and Development.5 Turkey’s ratification of the Paris Agreement in late 2021 is among the positive outcomes of the CBAM. The country now plans to align with the CBAM. In this, the Turkish cement industry will rely on a share of a US$3.2bn loan from the World Bank, France and Germany.

The UN has yet to receive an updated climate action plan from the Turkish government in line with its pledges. Should Turkey fail to transition within the short timeframe provided by the CBAM, its cement sector might increase its existing focus on the West African market, where it holds 55% and 46% market shares for cement and clinker imports to Ghana and Ivory Coast respectively. The beleaguered industry has one greater refuge still: the US market, which consumed 18% of Turkish cement exports in 2020.

North America

Discussions of the CBAM’s impacts in Canada and the US are tied to those countries’ on-going deliberations over possible adjustment mechanisms of their own. At present, individual provinces and states are responsible for implementing carbon pricing. An international emissions trading scheme, called the Western Climate Initiative, already exists between the US state of California and the Canadian province of Quebec. The Canadian government is conducting a consultation on federal Border Carbon Adjustment (BCA) credits in the context of economy-wide pricing.6 Carbon border adjustment was previously an item on the US Trade Policy Agenda in 2021, but disappeared in 2022. President Biden pledged to impose 'carbon adjustment fees or quotas on carbon-intensive goods from countries that are failing to meet their climate and environmental obligations' during his candidateship in the 2020 US presidential election. On 7 June 2022, two weeks before the EU adopted CBAM, Senator Sheldon Whitehouse introduced a carbon border adjustment bill to the US Senate, which it referred to its Committee on Finance.7

North American legislators will need to follow the European Parliament in building a broad centrist majority in order to pass their CBAMs. If they succeed, the world will gain a low-carbon axis of cement markets, bringing their trade partners behind them.

Other European countries

The UK cement industry expects to pay an extra US$30.1m/yr on account of the CBAM.9

A November 2021 report by the Ukraine Resource & Analysis Centre (Society and Environment) concluded that Ukraine's 'largest and most technological' cement producers will experience no critical influence from the CBAM when exporting to the EU.8 At that time, the Ukrainian strategy consisted of an alignment with any future CBAM. On 31 May 2022, The European Business Association calculated Ukrainian cement producers' total CBAM tax bill as US$3.36m/yr.10

Montenegro introduced its own emissions trading system, modelled on the EU ETS, in February 2021, a move which Bosnia and Herzegovina and North Macedonia have both announced their intent to follow.11

Norway has called for international acceptance of the CBAM, but questioned the practicality of including indirect carbon pricing.

An example of the possible adverse effects of the CBAM comes from the EU's ban on Russian cement imports in April 2022. The loss of the EU market was one likely contributor to a rollback of climate regulation there.12

Developing countries

Non-governmental organisation (NGO) Oxfam has criticised the CBAM's failure to include an exemption for the least developed countries. The EU's solution is an indirect one: it will put CBAM revenues towards its budget, from which international climate finance funding will be raised to an equivalent level. As Paris Agreement signatories, EU member states already expect to contribute towards a total US$100bn/yr in climate finance funds for poorer countries in 2023.

Oxfam has recommended that the EU do more to take account of its disproportionate contribution to cumulative global CO2 emissions. This would include directly paying CBAM revenues into international climate finance and accelerating the phase-out of free ETS allocations.

Conclusion

On 22 June 2022, the most sustainable cement market in the world successfully harnessed market forces to its emissions reduction ambitions. The European cement industry will be able to celebrate the end of carbon leakage. Cement companies outside of the EU, however, now face increased costs and lower prices for their product. The legislation addresses some of the harm that it causes to less developed countries; those – like China, Turkey and Vietnam – in the middle must meet it head-on.

So far, we have cited governments and lobby groups, but the real question of readiness for the CBAM lies with producers. Global cement companies, including those based in the EU, have implemented their sustainable cement technologies across all continents, and are beginning to reap the rewards of a new world where paying for pollution is unavoidable.

Sources

1. Sandbag, E3G and Energy Foundation, A Storm in a Teacup, Impacts and Geopolitical Risks of the European Carbon Border Adjustment Mechanism, August 2021, https://9tj4025ol53byww26jdkao0x-wpengine.netdna-ssl.com/wp-content/uploads/E3G-Sandbag-CBAM-Paper-Eng.pdf

2. Trend Economy, ‘Imports: European Union: 6810,’ 14 November 2021, https://trendeconomy.com/data/h2/EuropeanUnion/6810

3. Energy Monitor, ‘Carbon trading the Chinese way,’ 5 January 2022, https://www.energymonitor.ai/policy/carbon-markets/carbon-trading-the-chinese-way

4. China Power, ‘How Is China’s Energy Footprint Changing?’ https://chinapower.csis.org/energy-footprint/

5. Politico, ‘EU’s looming carbon tax nudged Turkey toward Paris climate accord, envoy says,’ 6 November 2021, https://www.politico.eu/article/eu-carbon-border-adjustment-mechanism-turkey-paris-accord-climate-change/

6. Canadian Climate Institute/L'Instut Climatique du Canada, 'Border Carbon Adjustments,' 27 January 2022, https://climateinstitute.ca/publications/border-carbon-adjustments/

7. Congress, 'S.4355 - Clean Competition Act,' 7 June 2022, https://www.congress.gov/bill/117th-congress/senate-bill/4355?s=1&r=6

8.Ukraine Resource & Analysis Centre (Society and Environment), ' The Impact of Carbon Border Adjustment Mechanism (CBAM) on the EU - Ukraine trade,' November 2021, https://www.rac.org.ua/uploads/content/624/files/impactcarbonmechanismcbamukrainesummaryen.pdf

9. Burke et al, 'What does an EU Carbon Border Adjustment Mechanism mean for the UK?' April 2021, https://www.lse.ac.uk/granthaminstitute/wp-content/uploads/2021/04/What-does-an-EU-Carbon-Border-Adjustment-Mechanism-mean-for-the-UK_FULL-REPORT.pdf

10. European Business Association, 'Ukrainian exporters to pay more than € 1 billion in carbon tax to the EU under the CBAM,' 31 May 2022, https://eba.com.ua/en/ponad-1-mlrd-yevro-podatku-na-vuglets-shhoroku-splachuvatymut-ukrayinski-eksportery-v-yes-v-ramkah-svam/

11. Balkan Green Energy News, 'Which Western Balkan countries intend to introduce carbon tax?' 18 May 2022, https://balkangreenenergynews.com/which-western-balkan-countries-intend-to-introduce-carbon-tax/

12. Climate Home News, 'Russian climate action and research is collateral damage in Putin’s war on Ukraine,' 26 May 2022, https://www.climatechangenews.com/2022/05/26/russian-climate-action-and-research-is-collateral-damage-in-putins-war-on-ukraine/


UK: Ireland-based Ecocem has appointed Mark Till as its National Sales Manager for the UK. His role will include overseeing commercial operations across the company's UK bases, strengthening existing customer relationships, working on specifications from engineers and architects and developing opportunities in new markets. Till has worked for Ecocem since 2019 as the UK Regional Sales Manager. Prior to this he worked for Oscrete Construction Products in sales roles from 2011 and for Brett Aggregates from 2002.


Vietnam: Brokerage company Mirae Asset Securities Vietnam (MASVN) expects cement producers that specialise in exports to switch to the domestic market due to reduced demand in China. The export market to China has slowed down due its Zero-Covid policy and a reduced real estate market, according to the Viet Nam News newspaper. Major local exporters include Vissai Ninh Binh, Hoang Mai and Thanh Thang. China accounted for 40% of Vietnam’s cement exports in 2021. If these companies switch to the local market then it is expected to create more competition for producers that are more domestically aligned, including Vicem Ha Tien, FICO and Holcim Vietnam


India: Nuvoco Vistas is promoting its products in Northern India with the launch of its Double Bull cement brand in the region. As part of the initiative it has increased its dealer network in the states of Haryana, Western Uttar Pradesh, Punjab, Delhi and Madhya Pradesh. It is also preparing to build a 1.2Mt/yr grinding plant at Bhiwani in Haryana to support its presence in the north of the country.

The cement producer manufactures Ordinary Portland Cement (OPC), Portland Slag Cement (PSC), Portland Pozzolana Cement (PPC) and Portland Composite Cement (PCC) products. Its flagship brands include the Concreto, Duraguard and Double Bull products.


Pakistan: The Federal Board of Revenue (FBR) has ordered cement producers to ensure that all cement bags that leave manufacturing sites include a tax stamp or unique identification marking from October 2022. The new requirement is intended to allow for the electronic monitoring of production and sales of goods, according to the Pakistan Today newspaper. This is part of a set of measures designed to increase tax revenue, reduce counterfeit products and stop smuggling.


Egypt: Korra Energi has been awarded a contract to build a 20MW waste heat recovery (WHR) unit at Suez Cement’s Helwan plant. The WHR unit will serve both of the plant’s two production lines. Korra Energi says it will be the first WHR project for a cement company in the country. Korra Energi is an Egypt-based engineering company and a subsidiary of conglomerate Korra.


Ghana: Alan Kyerematen, the Minister for Trade and Industry, has blamed the increasing price of cement on negative currency exchange effects and growing fuel prices. He informed the Parliament of Ghana that the cost to import clinker has risen significantly, according to the Ghana News Agency. Kyerematen also noted that the cost of freight has surged due to the coronavirus pandemic and then the war in Ukraine.


Morocco: LafargeHolcim Maroc is preparing to export clinker to West Africa in early July 2022. The shipment will be the plant’s second clinker export following a consignment of 40,000t to Guinea, according to the Les Eco newspaper. The plant, based near Tidsi, has been operational since late 2021.


Mexico: Cemex has launched a Green Financing Framework. The framework is intended to allow the building materials producer to issue green financing instruments aligned with the International Capital Market Association (ICMA) Green Bond Principles and the Loan Market Association Green Loan Principles. Under the Framework, Cemex intends to allocate the net proceeds from the issuances to finance eligible green projects in areas such as CO2 emissions reduction, clean electricity and energy efficiency, clean transportation, water management, air quality, circular economy and waste management. The framework reflects the roadmap and objectives of Cemex's climate action program, Future in Action. Cemex says it is the first of its kind in the building materials sector.

“After launching our Sustainability-Linked Financing Framework in 2021, it is only natural for us to build on that initiative with additional sustainable finance innovation in the form of the Green Financing Framework, that will enable the building of a more resilient future for all,” said Maher Al-Haffar, Cemex's Chief Financial Officer (CFO) and founding member of the United Nations Global Compact CFO Coalition for the Sustainable Development Goals.


Tanzania/UK: Maweni Limestone has joined the World Cement Association (WCA) as a Corporate Member. The cement producer is based in Tanzania and it has a production capacity of 1.5Mt/yr. In 2020 it was acquired and reconstructed by China-based Huaxin Cement.

“We are delighted to welcome Maweni Limestone among our membership, as one of WCA’s key ambitions is to more effectively engage emerging-market players across the global cement ecosystem” explains Ian Riley, the chief executive officer of the WCA.


South Africa: PPC’s full-year consolidated sales were US$624m in the 2022 financial year, which ended on 31 March 2022, up by 11% year-on-year from US$561m in the 2021 financial year. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 6.9% to US$94.5m from US$101m. During the year, the group reduced its debt by 55% to US$63m from US$139m.

The group noted high cement demand across its markets in the 2022 financial year, including a sales volumes increase of 28% year-on-year in Zimbabwe. It also noted a 19% year-on-year increase in South African cement imports, mainly from Vietnam, which constituted 10% of sales in the 2022 financial year. PPC said that it will ‘immediately make additional capacity available’ to capture the increased demand through the rest of 2023 financial year.


US: A team from the University of Colorado Boulder (UCB) has developed a carbon-neutral alternative cement from biogenic limestone. The limestone comes from farmed cocolitophores, which capture CO2 as they grow.

The UCB scientists collaborated with colleagues from the University of Carolina at Wilmington and the National Renewable Energy Laboratory on the project. Their work has received US$3.2m in US Department of Energy funding.

This news story has been corrected to include the correct name of the University of Colorado Boulder


India: Dalmia Bharat Refractories plans to launch its cement refractory products in new export markets. Chemical Industry Digest has reported that the company aims to achieve a turnover of US$191m in the 2023 financial year, and to launch a 3 – 4 year US$38.1 capital expenditure investment package. The supplier currently exports some refractories to Canada, Kenya, Morocco, Nigeria, Spain and West Asia.

Managing director and CEO Sameer Nagpal said “We have started some trials in Germany, before we turn regular suppliers and tap deeper into the export market.” Nagpal said that the company would also target other markets in Asia, Africa and Europe. He concluded “We are looking to gain a greater share of the customer’s wallet in these markets and in India.”


India: Protestors have halted mining operations at JSW Cement’s Khatkurbahal mine in Odisha, which serves the company’s Sundargarh cement plant. The New Indian Express newspaper has reported that the protestors accuse the company of mining and dumping overburden on neighbouring agricultural land, damaging properties with debris from blasts, drying up six wells and creating excessive dust pollution. The protestors also complained that the mine has failed to create new jobs for local people.


US: The Nevada Department of Transportation has approved the use of Portland limestone cement (PLC) for road construction and repairs. The department expects the move to reduce CO2 emissions by 4000t/yr. It uses 45,000t/yr of cement in its projects. Local press has reported that transport contributed 35% of Nevada’s CO2 emissions in 2022, making it the largest single source.


Somaliland: MSG Group of Companies through its DIFC Dubai based subsidiary company Horn Holding Group ltd (HHG) has signed an agreement with Bedeschi SPA Italy for the construction of phase 1 of a full cement plant in Berbera, Somaliland. Phase 1, a grinding unit, will take about 18 months and will have production capacity of 0.7Mt/yr. The project has also achieved financing from reputed Italian Financial Institutions. The complete full plant project shall take three years to complete with a production capacity of 1.2Mt/yr of cement and 1.0Mt/yr of clinker.

This article replaces an earlier version that erroneously stated that Raysut Cement was also involved in the project. MSG Group and Global Cement would like to make it clear that MSG Group is the 100% owner of this project.


Germany: HeidelbergCement has joined EPEA’s Heidelberg Circular City Building Material Registry pilot project. The initiative uses EMEA’s Urban Mining Screening digital registry, which is able to estimate the composition of buildings based on building data. HeidelbergCement says that it will enable it to source construction and demolition waste for circular economic use in building materials production. This will support its ReConcrete 360° recycled concrete CO2 reincorporation project, among other projects. The initiative will turn Heidelberg into Europe’s first Circular City.

“Full circular economy and sustainable construction are central elements of our climate strategy,” said HeidelbergCement chair Dominik von Achten. “We are focusing on the life cycle assessment of our product concrete, including the processing of demolished concrete, and returning it to the construction cycle. By 2030, we want to offer circular alternatives for half of our concrete products.” Von Achten concluded “Together with the city of Heidelberg, also a pioneer in the area of climate protection, we want to use the Circular City project to demonstrate the enormous potential of concrete recycling for future urban construction.” 



UK: Karbonite UK has developed a new supplementary cementitious material consisting of mineral feedstock, geopolymers and waste biomass. The process also involves CO2 sequestration and liquid-infused CO2 absorption within the mineral structure. The material, called Karbonite, is activated at 750 – 850°C, releasing water, which is captured for recycling. Its CO2 emissions are 2.7kg/t, according to Karbonite UK. The developer says that Karbonite ground with 50% clinker yields a cement of equal compressive strength to ordinary Portland cement (OPC).

Karbonite UK is currently preparing a final report on the product for a major cement producer.

Managing director Rajeev Sood said “Karbonite offers a wealth of potential to an industry targeting net zero. We are excited to talk to cement and concrete producers about how they could integrate Karbonite technology into their existing process.”


Uzbekistan: QuvasoyCement has installed Denair Energy Saving Technology (Shanghai)’s DV 315 compressors at its Fergana cement plant. The cement producer says that the new compressors increase performance by 95% compared to previous equipment. It predicts cost savings of US$25,100/yr as a result of the upgrade.


Austria: RHI Magnesita’s customers can now rely on Environmental Indicators on all of its products’ Technical Data Sheets to check their CO2 emissions. The indicators state the CO2 equivalent emissions per tonne of each product. The supplier calculated the figures in line with ISO standards under on-going external supervision.

Chief sustainability officer Gustavo Franco said “One of RHI Magnesita’s main targets is to significantly reduce emissions over the next few decades, with the long-term goal of achieving net-zero operations in all areas of the company. It is clear that a solid basis for sustainable decisions and developments can only be achieved by creating a valid audited database.”


Argentina: The National Commission for Competition Defence (CNDC) has recommended that the Asociación de Fabricantes de Cemento Portland (AFCP) stop sharing information on cement production and deliveries on a provincial basis that is less than 12 months old. Following an investigation into the cement sector the competition body expressed concern about the “exchange of information" between the main local cement producers, according to the Ámbito Financiero newspaper. An official investigation into collusion between the companies that ran from 2016 to 2021 found that they carried out anti-competitive behaviour that led to costs for construction being inflated by US$180m. It concluded that the sector had a, “high degree of concentration, high barriers to entry and reduced competitive dynamics.” The cement industry was previously fined in 2005 when it was found to have acted as a cartel for 20 years from the 1980s.

 


India: Gujarat Sidhee Cement has stopped its kiln for a temporary period of 15 – 20 days due to high clinker inventory levels. Cement grinding and despatch will continue unabated. The cement producer operates an integrated plant at Sidheegram in Gujarat.


Russia: Kaliningrad region is redirecting cement deliveries to the region to sea transport following the implementation of trade sanctions by neighbouring Lithuania. The first consignment of cement redirected from the railroad, on the Kholmogory dry-cargo carrier, is scheduled to be transported on the Bronka - Kaliningrad shipping route by the end of June 2022, according to Interfax. The Ursa Major cargo ship will also be used on the Ust-Luga - Baltiisk shipping route. Additional ships will be used to increase transport capacity to supply the Russian enclave.

Deputy head of the regional government Alexander Rolbinov said, "Now, with the support of the Russian Transport Ministry, the logistics of supplying the region with essential cargos are changing. In particular, we are fully redirecting cement deliveries to sea transport. We have already worked out with Eurocement the required amount of material for the construction industry, which will be packed in 'big bags' and shipped by the fleet. The situation is under the constant control of the governor."

The Kaliningrad region needs about 600,000t/yr of cement. Previously cement was transported by rail through the European Union (EU). However, EU economic sanctions in response to the war in Ukraine started being implemented directly by Lithuania from 18 June 2022. The Russian government has threatened Lithuania with retaliatory sanctions.

 


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.


UK: 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.”


US: 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.


US: Sweden-based Bruks Siwertell has commissioned a Siwertell 490 F-type ship unloader at Colonial Group’s Georgia Kaolin Terminals in Savannah, Georgia. The unloader has a rated cement handling capacity of 800t/hr, discharging vessels of up to 55,000dwt.


Austria: RHI Magnesita says it has released CO2 emissions data for all of its 200,000 products. Technical Data Sheets now include a field ‘Environmental Indicators’ in which the CO2 equivalent emission of one metric ton of the product is listed. The calculation method for these indicators is developed with and supervised on an on-going basis by an external organisation under the principles of ISO standards. All greenhouse gases ‘cradle-to-gate’, from raw material extraction to production to packaging to gate are considered in these CO2 footprint calculations.

Chief sustainability officer Gustavo Franco said "This project marks an important milestone towards a green transformation. Thus, one of RHI Magnesita's main targets is to significantly reduce emissions over the next few decades, with the long-term goal of achieving net-zero operations in all areas of the company. It is clear, that a solid basis for sustainable decisions and developments can only be achieved by creating a valid audited database."


World: The total volume of CO2 emissions released during cement production have more than doubled over the past 20 years, a study has revealed. In 2021 CO2 emissions from the manufacture of cement came to 2.6Bnt, more than 7% of all emissions, according to Robbie Andrew, a greenhouse gas emissions scientist at the CICERO Center for Climate Research in Norway and the Global Carbon Project. In 2001 the CO2 emissions from cement production were just 1.2Bnt.

Driven by China, the global cement sector’s CO2 emissions have now more than tripled in the 30 years since 1992, recently increasing by 2.6% a year. The drivers are not just that more cement is being made, but that the CO2 intensity of production has risen by 9.2% per tonne, according to the International Energy Agency. This is due to a switch from production in mature markets to developing ones, with China again a dominant factor.


Canada: Holcim subsidiary Lafarge Canada has announced that its Bath cement plant in Kingston, Ontario, is in the process of converting to the production of Holcim’s OneCem product, a low CO2 Portland Limestone Cement (PLC) alternative. The plant currently makes general use (GU) cement.

"As the leader in the cement industry in eastern Canada, we are committed to developing our green portfolio and advancing towards a sustainable future, with OneCem as a step on the journey," said Andrew Stewart, Vice President for Cement at Lafarge Eastern Canada.

Robert Cumming, Head of Sustainability & Public Affairs for Eastern Canada, said "From 2018 to 2021 we have saved more than 140,000t of CO2 by converting GU cement to OneCem in our plants across Ontario, Quebec and Nova Scotia - the equivalent to taking 42,891 cars off the road. With the recent conversion of the Bath Plant's GU production to OneCem, these numbers will continue to grow."


Canada: Lafarge Canada’s Richmond cement plant, one of the largest in British Columbia, has temporarily cut production, exacerbating a cement and concrete shortage in Vancouver, where some building firms have been forced to halt projects. The Richmond plant has been operating at limited capacity since a fire in the pre-heater tower on 31 May 2022.

Local press reported that the Richmond plant was ‘undergoing electric repairs to an isolated area,’ according to an emailed statement from the company. The company added "We expect to resume full production capacity shortly and are leveraging our strong production and supply network in an effort to minimize impact to our customers."


US: Eco Material Technologies, a producer of sustainable cementitious materials, has opened its Kirkland Pozzolan Mine in Yavapai County, Arizona. The 40-hectare site is one of the largest natural pozzolan mines in the US.
"We are excited for the opening of the Kirkland Pozzolan Mine, which will benefit not only Yavapai County but all of Arizona as well as the surrounding region," said Grant Quasha, CEO of Eco Material Technologies. "Without the support of elected officials, including Governor Doug Ducey, Senator Mark Kelly, State Senator Karen Fann and State Representative Quang Nguyen, we would not be celebrating this milestone achievement."

The event also recognised the hard work and dedication of the plant's employees, as well as Eco Material's contributions to the area including bringing wireless internet service to the surrounding community, planting new trees and generating significant tax revenue for the state.


France: Low-CO2 cement manufacturer Hoffmann Green Cement Technologies has signed an exclusive partnership with IBAU Hamburg to build all future Hoffmann Green Cement units.

As the general contractor for the second production site (H2) currently under construction at Bournezeau, France, IBAU Hamburg also will be responsible for the exclusive management and construction of the third production site (H3) in Dunkirk, France. It will also build international sites, to be established at a number of locations in Europe and, subsequently, outside of Europe. IBAU Hamburg will handle the entire construction process for each project, from the design stage to the completion of the unit. All of the units will be built entirely with Hoffmann Green decarbonated and clinker-free cement.


Liberia: The International Finance Corporation (IFC) has announced a US$21.1m financing package for Fouta Cement, Liberia's second-largest cement supplier. The IFC said the move is to help increase local manufacturing and infrastructure development in Liberia and reduce the country's reliance on imported construction materials.
The financing package will help Fouta Cement to build and operate a 0.35Mt/yr clinker grinding plant in Monrovia, the Liberian capital. The financing package consists of a loan of up to US$5.4m from IFC's own account, a US$10.8m loan from the International Development Association's Private Sector Window Blended Finance Facility (IDA PSW BFF), and a loan of up to US$5m to be mobilised from Bank of Africa United Kingdom.

“IFC's partnership with Fouta Cement comes at a critical time for Liberia as it recovers from the economic effects of Covid-19 and seeks to meet the longstanding infrastructure needs of the country,” said Sérgio Pimenta, IFC's Vice President for Africa. “The investment is also IFC's largest in Liberia in recent years and is a strong show of support for the country's private sector and growth.”


Uzbekistan/Kazakhstan: Uzbekistan-based Bekabadcement, part of United Cement Group (UGC) Holding, has become a partner in a key project to build a 350km international transport corridor connecting Uzbekistan and Kazakhstan, to be financed by the Asian Development Bank.

The company’s products are well known domestically for their use in the construction of major infrastructure facilities, such as the construction of transport corridors and modernisation of irrigation systems in Uzbekistan and Kyrgyzstan, as well as the rebuilding of the Baikonur Cosmodrome in Kazakhstan.