Cementing the global net-zero transition

The cement industry accounts for approximately 7% of global CO2 emissions and faces significant barriers to decarbonisation due to high capital intensity and the nature of process emissions. The report argues that achieving net-zero by 2050 requires a combination of technological shifts—such as carbon capture and storage (CCS), alternative binders, and fuel substitution—and robust policy support. Key policy recommendations include the implementation of carbon contracts for difference (CCfDs), green public procurement, and carbon border adjustment mechanisms (CBAMs) to prevent carbon leakage. Financial investment needs are estimated to reach USD 70 billion annually between 2030 and 2040, which the report suggests could be unlocked through the sustainable debt market and science-based certification standards.

• Cement production is the second largest global industrial emitter after steel, contributing approximately 7% of worldwide CO2 emissions. It is highly carbon-intensive, releasing about 6.9 kg of CO2 per USD of revenue.
• Decarbonising cement is uniquely challenging because roughly 60% of direct emissions result from the chemical calcination process, which cannot be eliminated by simply substituting fuels.
• Global cement demand is projected to increase by nearly 50% by 2050, with the highest growth expected in Africa, Latin America, and India. This growth risks creating long-term carbon lock-in and stranded assets if met with fossil-based facilities, given that cement assets can last up to 60 years.
• The financial investment required to transition the global cement industry is estimated to be USD 70 billion annually between 2030 and 2040, which is double current investment levels.
• Key short-term decarbonisation levers include improving clinker-to-cement ratios, maximising energy efficiency, and substituting fossil fuels with alternative fuels like waste-derived materials. Medium- to long-term solutions focus on carbon capture and storage (CCS), low-carbon hydrogen, and solar thermal energy.
• Policy instruments to support the transition include Carbon Contracts for Difference (CCfDs) to provide price stability for innovative technologies, and Green Public Procurement (GPP), as public authorities account for 20-30% of global construction industry revenues.
• To address carbon leakage—where industries relocate to avoid carbon pricing—the report highlights the use of Carbon Border Adjustment Mechanisms (CBAMs), such as the one implemented by the EU which becomes effective in 2026.

APA

Passaro, F., Boulle, B., & Burge, L. (2023). Cementing the global net-zero transition. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/Cementing-the-Global-Net-Zero-Transition.pdf

Chicago

Passaro, Fabio, Bridget Boulle, and Lily Burge. Cementing the global net-zero transition. Climate Bonds Initiative, 2023. https://www.climatebonds.net/files/documents/publications/Cementing-the-Global-Net-Zero-Transition.pdf.

Wikipedia

{{cite report |last1=Passaro |first1=Fabio |last2=Boulle |first2=Bridget |last3=Burge |first3=Lily |title=Cementing the global net-zero transition |publisher=Climate Bonds Initiative |date=September 2023 |url=https://www.climatebonds.net/files/documents/publications/Cementing-the-Global-Net-Zero-Transition.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{passaro2023cementing, author = {Passaro, Fabio and Boulle, Bridget and Burge, Lily}, title = {{Cementing the global net-zero transition}}, institution = {Climate Bonds Initiative}, year = {2023}, month = sep, url = {https://www.climatebonds.net/files/documents/publications/Cementing-the-Global-Net-Zero-Transition.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }