‘Getting the Numbers Right’: Beyond the Inventory in the Cement Industry 23 March 2010, Washington, USA Caroline Twigg World Business Council for Sustainable Development (WBCSD) WBCSD Cement Sustainability (CSI) 23 member companies ~40% global production 100 countries CEOs sign CSI Charter From accounting to reducing: challenges Sector characteristics: • 60% of cement emissions: process emissions • Long infrastructure life • Increasing demand … … Industry emissions reductions with Protocol: • Sector specific detail • Benchmarking and target-setting • Policy framework based on sound data • Competitive issues, anti-trust • Using the data 3 Sector specific detail ‘… provide a harmonized methodology for calculating CO2 emissions, with a view to reporting these emissions transparently’ ‘… addresses all direct and main indirect sources of CO2 emissions related to cement manufacturing, in absolute and specific or unit-based terms’ Developed and revised with stakeholders 4 Verification Item Proposed requirement Standard ISAE3000, ISO 14064-3 and CSI CO2 Protocol Materiality Threshold 5% of one or more CO2 KPIs Level Limited Frequency At least once every two years, assuring data from both Coverage Verifiers decide number of sites to be visited and assurance statements explicitly mention number of sites visited and corresponding % CO2 emissions covered Sampling Plan Deadline Count plants assured in other schemes (eg EUETS, CDM) as samples for CSI CO2 assurance, avoiding double verification Data must be verified and reported: • Old plants/ new plants/ acquisitions – two years at most • New CSI members – four years at most 5 Benchmarking, target-setting Companies set own emissions reductions targets, sharing learning together By 2010 (1990 baseline) • Holcim: 20% reduction in specific CO2 emissions • Titan: 15% reduction in specific CO2 emissions • Siam Cement Group: reduction to 670 kg/ton cementitious product By 2012 (1990 baseline) • Votorantim: 10% reduction in specific CO2 emissions • Italcementi: reduction to 690 kg/ton cementitious product … etc 6 Policy framework based on sound data • CSI ‘Getting the Numbers Right’ • Aim: obtain current and robust data for CO2 and energy performance … at global and regional levels across cement companies worldwide Provides: – transparent, verifiable, current data on key drivers of emissions and performance – global and regional data: 1990, 2000, 2005, 2006, 2007 2007 data = 891 global cement installations / 31% of global cement production 7 ‘Getting the Numbers Right’ Note: 5 Chinese companies recently joined the CSI; their production volumes and emissions data are not yet included. Once they are, coverage in China will reach approximately 20% and global coverage over 40% 8 Competition issues, anti-trust • Managed by independent 3rd party • Complies with anti-trust laws • Participants may only see reports on own individual company data or aggregated results • Confidential information on companies or plants is: – not disclosed – not accessible – protected by contractual and data security measures 9 Using the data Net CO2 emission per tonne clinker 1200 1100 1000 kg CO2/t 900 800 700 600 500 400 300 200 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % clinker production 2007 2006 2005 2000 1990 10 kg CO2 / tonne clinker 400 200 0 600 876 833 839 829 835 980 939 904 899 896 837 815 803 806 815 936 839 831 832 835 900 852 828 823 824 946 928 896 909 942 1,067 950 923 887 876 849 846 856 857 857 858 823 809 802 803 878 858 847 844 837 914 854 832 832 833 Using the data Average net CO2 emissions per tonne clinker per region (all GNR participants) 1200 1000 800 1990 2000 2005 2006 2007 Using the data Provides • Company benchmarking • Tracking emissions inventories • Industry data and performance analysis • Credible, verified source of industry-wide and regional information for policy discussions • Data-based responses to climate management 12 Using the data • • • • CSI Sectoral Approach modeling work Cement Technology Roadmap 2009 with IEA Policy discussions Stakeholder queries: Agency Focus of query PWC Mexico Sectoral approach study International Energy Agency (IEA) Regional information (India) French Ministry of Environment Cement industry environmental performance Cement Association of Canada Benchmark modeling 13 Future outlook Maintain system robustness • Secure, accurate, structured, rules, verification Increase representativeness • 31% coverage: expanding to 50%, annual collection Improve system • Improved Protocol January 2011, User Guide update Answer external queries (50 to date) CSI analysis and commentary Mitigation projects based on sound data 14 Find out more www.wbcsdcement.org/co2data CD available Caroline Twigg: twigg@wbcsd.org 15 ‘Very valuable asset allowing the industry to engage in fact-based dialogue … speaking one common language has proved very useful’ (CEMBUREAU) 16 Thank you 17