DEDICATED TO MAKING A DIFFERENCE
The Cement Sustainability Initiative
A Sectoral Approach for the
Cement Sector
December 2007
Patrick Verhagen, Holcim
DEDICATED TO MAKING A DIFFERENCE
Introduction
The Cement Sustainability Initiative (CSI):
 is a Sustainable Development project since 2000 by
18 leading cement companies operating in more
than 100 countries;
 is developing the basis for a global Sectoral
Approach (SA) with stakeholders as a way to enable
more rapid,equitable and economical GHG mitigation.
The intended global SA:
 should operate within the UNFCCC;
 be compatible with existing and future mechanisms
(ETS’s);
 assumes similar sectoral agreements in other
sectors.
A Sectoral Approach for the Cement Sector, Dec. 2007
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DEDICATED TO MAKING A DIFFERENCE
Context

Cement demand and associated CO2 emissions are
growing, mostly in developing countries.

IEA forecasts doubling of production by 2050.

Kyoto targets are valid for 2012; the post 2012 global
agreement is uncertain.

SA’s are expected to be compatible with present
approaches (APP, EU) and mechanisms, as well as
a transitional step to a global agreement.
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DEDICATED TO MAKING A DIFFERENCE
Context

SA’s need emission data soundly based on
extensive monitoring, reporting and verification
(MRV).

SA’s can contribute to global mitigation by
incentivizing company action in developing nations,
e.g. with a ‘no-lose’ approach with non-binding
targets.

SA’s will require effective government regulations
that cover the whole sector.
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DEDICATED TO MAKING A DIFFERENCE
Key Success Factors
A successful approach must include:

Mitigation

SA must deliver tangible verifiable reductions, starting
with lower intensity of emissions.

Acceptance


SA must be accepted by Policy Makers, requiring
governments and industry to define sectoral targets and
related implementation mechanisms.
Global

All major economies must participate.
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DEDICATED TO MAKING A DIFFERENCE
Key Elements

Intensity-based



Clear, simple metrics



Based on the WBCSD/WRI CO2 protocol.
Simple CO2 intensity metrics: t CO2 / t product.
Any market credits to be fungible with other systems




Improve CO2 emissions intensity using benchmarks.
Differentiated targets are required.
CDM/JI etc.
ETS’s Cap & Trade allowances based on intensity
targets.
Incentives for developing countries with sector-based
crediting.
Promote technology development & transfer
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DEDICATED TO MAKING A DIFFERENCE
Current Supporting Actions
-four areas-
1. Policy Development
– Stakeholder policy dialogues ongoing in EU, APP and
Japan.
– Other dialogues foreseen in 2008 in India, USA and
East Asia.
– Trade associations to lead country negotiations.
– Benchmarking methodology proposals to be developed
in 2008.
– Estimated global sectoral GHG reduction potential with
present technology to be presented in 2008.
2. Data Collection
– Common WBCSD/WRI CO2 Protocol data (DONE).
– Analysis of 1990, 2000, 2005 data (DONE).
– Open platform to accommodate the global cement
industry.
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DEDICATED TO MAKING A DIFFERENCE
Current Supporting Actions
-four areas3. Capacity building
–
–
Protocol training and workshop sessions in China and
India.
Development of the CSI approach in India.
4. Technology Development and Transfer
–
–
–
–
Process research with institutions and organizations.
Public Sector Partnership on fuel substitution (China).
Support APP program, e.g. Chinese Center of
Excellence.
Carbon Capture options.
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DEDICATED TO MAKING A DIFFERENCE
Major Challenges and
Opportunities
• ‘No-Lose’ in China and India
• Who will set and update the benchmarks and
stretch/motivating targets?
• Verification
• Engaging trade associations
 Transparent base for defining benchmarks
 Fungible with existing and future systems
 Promoting sector-based crediting
 Place at the policy discussion table
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