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The cement industry has the technology to decarbonise, however, it lacks the economic incentives and therefore lacks the drive to act.
This was highlighted at the 5th World Cement Association (WCA) Annual Conference, which took place in September in Dubai, UAE.
This year’s theme focused on how the industry’s needs to navigate the climate challenge by reducing carbon and costs.
Consulting firm A³&Co. highlighted that cement producers in the MENA region can reduce CO2 emissions by 47% by implementing steps such as operational excellence, product portfolio optimisation, using alternative fuels and calcined clay or belite cement.
“There is plenty that can be done today with a big positive impact on the bottom line and on emissions,” said Amr Nader, A³&Co. ’s co-founder and CEO.
Attendees and speakers agreed that besides the lack of drive for action, economic incentives were another factor limiting decarbonisation.
Globally, cement generates the most carbon emissions per revenue dollar with 6.9kg of CO2 emitted per dollar, five times more than steel, according to McKinsey.
Therefore, governments must create incentives, such as carbon pricing and green procurement for public projects, to enable change to happen faster.
WCA board member, Mahendra Singhi, CEO of Dalmia Cement (Bharat) Ltd, made his keynote speech highlighting what can be accomplished when management is aligned and determined, even in a country such as India, which has no carbon pricing. He explained how from June 2022 Dalmia has achieved the lowest emissions of any major cement company worldwide, with an average CO2 footprint of 486 kg per tonne of cement.
“Our efforts have helped us achieve one of the lowest carbon footprints across the global cement industry, as well as being one of the most profitable cement companies in India,” said Mahendra Singhi, CEO of Dalmia Cement (Bharat) Ltd.
“It was great to finally hold our conference in person this year, there was a clear desire to act at the WCA Annual Conference. There are actions that all cement companies can take today to reduce emissions and cut costs at the same time, it’s win-win for both climate and company,” said WCA CEO Ian Riley.
