Concrete solutions for decarbonising the EUs cement sector

The EU cement sector emits 114 megatonnes of CO2 annually, with 60% resulting from the chemical process of clinker production. Carbon Market Watch argues that the EU ETS has failed to trigger significant reductions over the last decade due to the overallocation of free allowances, which generated €3 billion in windfall profits for the industry between 2008 and 2019. The briefing recommends increasing the minimum annual benchmark improvement rate to 1%, fully replacing free allowances with the Carbon Border Adjustment Mechanism (CBAM) by 2026 to generate up to €13 billion annually for the Innovation Fund, and promoting material efficiency to reduce emissions by up to 65%.

• The EU cement industry emits approximately 114 million tonnes (Mt) of greenhouse gases annually, representing roughly 2.5% of all EU emissions. Emissions are split between fossil fuel combustion for heating kilns (40%) and process emissions from the chemical reaction during clinker production (60%).
• The EU ETS has underperformed in the cement sector, with CO2 emissions per ton of material remaining stable since 2012. This is attributed to the overallocation of free pollution permits; between 2008 and 2019, the sector received 1.5 billion free allowances (about 120% of its needs), resulting in €3 billion in additional profits.
• Current ETS benchmarks for cement improve too slowly (minimum 0.2% and maximum 1.6% annually) to incentivize investment in cleaner processes. The document proposes a minimum annual reduction rate of 1% and a shift toward a broader cement benchmark rather than a clinker-specific one to encourage the use of alternative materials.
• The Carbon Border Adjustment Mechanism (CBAM) is presented as a necessary replacement for free allowances. If fully implemented by 2026, CBAM could generate over €13 billion annually for the Innovation Fund, with €5 billion coming specifically from the cement sector.
• Material efficiency and circularity could reduce cement sector emissions by up to 65%. The document suggests a 'cascade effect' of targets across the value chain, including clinker with less than 0.7 t CO2/t clinker for producers and buildings containing less than 500 kg CO2/m2 for construction companies.
• The K6 project, the only cement sector project funded in the Innovation Fund's first call, utilizes an oxyfuel kiln at the Eqiom plant in Lumbres, France. It aims to avoid 8.1 Mt CO2e over 10 years by capturing CO2 for storage in the North Sea or use in concrete, while nearly doubling the plant's clinker capacity from 600,000 to 1 million tonnes per year.

APA

Carbon Market Watch (2022). Concrete solutions for decarbonising the EUs cement sector. https://carbonmarketwatch.org/wp-content/uploads/2022/11/CMW_Decarbonising-Cement.pdf

Chicago

Carbon Market Watch. Concrete solutions for decarbonising the EUs cement sector. 2022. https://carbonmarketwatch.org/wp-content/uploads/2022/11/CMW_Decarbonising-Cement.pdf.

Wikipedia

{{cite report |author=Carbon Market Watch |title=Concrete solutions for decarbonising the EUs cement sector |date=October 2022 |url=https://carbonmarketwatch.org/wp-content/uploads/2022/11/CMW_Decarbonising-Cement.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{carbonmarketwatch2022concrete, author = {{Carbon Market Watch}}, title = {{Concrete solutions for decarbonising the EUs cement sector}}, institution = {Carbon Market Watch}, year = {2022}, month = oct, url = {https://carbonmarketwatch.org/wp-content/uploads/2022/11/CMW_Decarbonising-Cement.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }