Energy-Intensive Industries: Decision making for a low-carbon future

The cement sector is a major global CO2 source, with emissions projected to reach 4.0 Gt by 2030. While emissions intensity is declining due to the adoption of best available technology (BAT) and alternative fuels, these gains are offset by rising production volumes, particularly in China. The report argues that current carbon pricing, such as the EU ETS, is insufficient to drive the breakthrough technologies needed for a low-carbon future, such as carbon capture and storage (CCS) and new low-carbon cement forms. It suggests that a combination of public-private financing, revised building standards, and Border Carbon Adjustments (BCAs) is necessary to prevent carbon leakage and incentivize deep decarbonization.

• Global CO2 emissions from the cement sector are increasing significantly, rising from 1.1 gigatonne (Gt) in 1990 to 1.9 Gt in 2006, with a projection of 4.0 Gt by 2030.
• The cement industry's carbon footprint is driven by three main sources: calcination (approximately 55% of total CO2), fuel burning in kilns (35%), and electricity use (10%).
• Global production growth is heavily concentrated in China, which accounted for around 55% of global production as of the report's data, and over 65% of clinker capacity growth between 2000 and 2010.
• There is limited evidence that the EU Emissions Trading System (ETS) has significantly influenced plant location decisions or production levels, partly because effects are obscured by the allocation of free allowances.
• Carbon capture and storage (CCS) and new low-carbon cement forms are essential for deep emissions cuts, but they are not progressing at the necessary rate due to high costs and risks that exceed the capacity of individual companies.
• The economic case for CCS is weak without strong incentives; a CO2 price of €15 per tonne would barely cover the lowest estimated additional operational costs of €10 to 50 per tonne of clinker.
• Clinker substitution is one of the most efficient and often cost-effective ways to reduce emissions, but its adoption is hindered by outdated building standards and a lack of market for blended cements.
• The industry is characterized by high sunk costs and long investment cycles, meaning decisions made today will influence the industry's carbon trajectory well into 2050.

APA

Kitson, L., & Wooders, P. (2012). Energy-Intensive Industries: Decision making for a low-carbon future. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/energy_intensive_industries.pdf

Chicago

Kitson, Lucy, and Peter Wooders. Energy-Intensive Industries: Decision making for a low-carbon future. International Institute for Sustainable Development, 2012. https://www.iisd.org/system/files/publications/energy_intensive_industries.pdf.

Wikipedia

{{cite report |last1=Kitson |first1=Lucy |last2=Wooders |first2=Peter |title=Energy-Intensive Industries: Decision making for a low-carbon future |publisher=International Institute for Sustainable Development |date=September 2012 |url=https://www.iisd.org/system/files/publications/energy_intensive_industries.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kitson2012energyintensive, author = {Kitson, Lucy and Wooders, Peter}, title = {{Energy-Intensive Industries: Decision making for a low-carbon future}}, institution = {International Institute for Sustainable Development}, year = {2012}, month = sep, url = {https://www.iisd.org/system/files/publications/energy_intensive_industries.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }