UK cement body welcomes EU deal linking emissions trading systems

The UK's Mineral Products Association, representing cement and lime producers, said May 21 that a decision to link the UK and the EU emissions trading systems was "a step in the right direction."

The decision was announced at the conclusion of the UK-EU Summit in London May 19.

"We've been calling for linking UK and EU schemes for some time and the Government's announcement is a step in the right direction," said the MPA's Executive Director for Energy and Climate Change, Diana Casey, in a statement.

Linking the two systems will give UK cement and lime producers access to a larger, more liquid carbon market, the association said.

The MPA highlighted the country's high cost of electricity relative to European peers, which it said was weakening domestic cement production.

"While we welcome moves towards linking, it is important that this is followed up by bringing UK industrial electricity costs into line with competitor economies."

UK cement production decreased 8.4% to 7.7 million mt in 2023, according to the latest full-year statistics from the Department for Business and Trade.

Data from the International Energy Agency for the same period showed that the UK had the highest industrial power price among the 28 countries it surveys at 26 pence/kWh.

Platts, part of S&P Global Commodity Insights, assessed CEMDEX Turkey at $54/mt FOB on May 15.