Toward a Tradable, Low-Carbon Cement Standard

The paper proposes a tradable performance standard for the U.S. cement industry that sets an emissions intensity benchmark. Producers exceeding the benchmark must surrender credits, while those below it generate tradable credits, creating a financial incentive for decarbonization. The authors recommend a standard covering Scope 1 and Scope 2 emissions per unit of clinker and mineral additives, with stringency increasing annually. To prevent carbon leakage, the standard would apply to both domestic production and imports. The paper emphasizes that this standard must be part of a broader policy suite, including innovation funding and market-demand policies, to address the high costs and technical barriers of deep decarbonization technologies like carbon capture, use, and storage (CCUS).

• A tradable low-carbon cement standard can drive decarbonization by rewarding companies that reduce emissions intensity and providing a regulatory road map for long-term investment in deep emissions reductions.
• Cement production is a significant source of greenhouse gases, accounting for approximately 1.2 percent of U.S. emissions and 7 percent of global emissions, with emissions stemming from both fuel combustion and the chemical process of calcination.
• The authors recommend an emissions intensity metric that includes direct (Scope 1) and indirect (Scope 2) emissions of CO2, CH4, and N2O per unit of clinker and mineral additives, using a default grid-average factor for Scope 2 emissions to avoid geographic inconsistency.
• To ensure a gradual transition, the benchmark should start marginally below the current average emissions intensity and tighten annually, with the rate of decline updated every five years to align with global net-zero goals.
• To maintain economic stability and predictability, the standard should incorporate price floors and ceilings for credits, with the ceiling potentially tied to the cost of backstop technologies like direct air capture.
• To mitigate the risk of carbon leakage and maintain competitiveness, the performance standard should be applied to imported cement using a conservative default emissions factor unless verified data is provided.
• While a low-carbon standard is a powerful tool, it is insufficient on its own; it must be complemented by innovation policies for RD&D, financial assistance for deployment, and market-demand policies like green procurement.
• Various abatement options exist with different potentials: CCUS could theoretically capture up to 60 MtCO2 annually in the U.S., while oxy-combustion has a technical potential of up to 100 percent capture of flue gas emissions.
• Implementing the standard at the federal level could be achieved through new legislation, which allows for holistic design, or via the Clean Air Act, though the latter would likely limit coverage to Scope 1 emissions and exclude importers.

APA

Fransen, T., Lebling, K., Weyl, D., & Kennedy, K. (2021). Toward a Tradable, Low-Carbon Cement Standard. World Resources Institute. https://files.wri.org/d8/s3fs-public/toward-tradable-low-carbon-cement-standard.pdf#page=19

Chicago

Fransen, Taryn, Katie Lebling, Debbie Weyl, and Kevin Kennedy. Toward a Tradable, Low-Carbon Cement Standard. World Resources Institute, 2021. https://files.wri.org/d8/s3fs-public/toward-tradable-low-carbon-cement-standard.pdf#page=19.

Wikipedia

{{cite report |last1=Fransen |first1=Taryn |last2=Lebling |first2=Katie |last3=Weyl |first3=Debbie |last4=Kennedy |first4=Kevin |title=Toward a Tradable, Low-Carbon Cement Standard |publisher=World Resources Institute |date=March 2021 |url=https://files.wri.org/d8/s3fs-public/toward-tradable-low-carbon-cement-standard.pdf#page=19 |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fransen2021toward, author = {Fransen, Taryn and Lebling, Katie and Weyl, Debbie and Kennedy, Kevin}, title = {{Toward a Tradable, Low-Carbon Cement Standard}}, institution = {World Resources Institute}, year = {2021}, month = mar, url = {https://files.wri.org/d8/s3fs-public/toward-tradable-low-carbon-cement-standard.pdf#page=19}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }