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This research paper by the Climate Policy Initiative examines how California's Cap and Trade Program, established under the Global Warming Solutions Act of 2006 (AB32), influences investment decisions in the cement industry. Through financial modeling and stakeholder interviews, the authors analyze the impact of carbon pricing on three primary abatement strategies: energy efficiency, fuel switching, and the blending of supplementary cementitious materials (SCMs). The study finds that while carbon prices make emissions reductions more financially attractive, significant non-price barriers—including short corporate payback period requirements, fuel supply uncertainty, and prescriptive customer procurement standards—often prevent firms from pursuing cost-effective abatement options.