EU, cement industry set roadmap to accelerate clean transition, cut CO2

The European Commission convened a high-level policy dialogue with cement producers and stakeholders to accelerate the sector's clean transition amid rising energy costs and direct process emissions, which account for over 60% of the industry's CO2 footprint, the EC said in a statement March 25.

Europe's cement industry faces significant decarbonization challenges as it seeks to maintain competitiveness and meet net-zero targets, the EC said.

The sector is a cornerstone of European construction but is also among the bloc's largest industrial emitters, with process emissions from clinker production representing the bulk of its carbon output, according to the EC.

The EC said it aims to establish leading markets for low-carbon cement and concrete by leveraging public procurement and introducing a new low-carbon concrete label, while also revising product standards under the Construction Products Regulation to mandate lifecycle climate impact disclosure.

The proposed Industrial Decarbonisation Bank is intended to provide Eur100 billion in public funding to support initiatives including carbon capture, utilization and storage, clinker substitution and other innovative technologies, according to the EC.

In the statement, cement companies reaffirmed their support for the EU Emissions Trading System as the sector's primary decarbonization driver, while calling for a predictable, stable post-2030 policy framework to underpin investment.

The EC and the industry also underscored the importance of a strong Carbon Border Adjustment Mechanism to prevent carbon leakage and maintain a level playing field for EU producers, according to the statement.

High energy costs

High energy costs and the urgent need to rapidly develop CO2 transport and storage infrastructure remain the biggest challenges, while the Net-Zero Industry Act's requirement for oil and gas producers to deliver 50 million mt/y of CO2 injection and storage capacity by 2030 is seen as a key enabler, according to the EC.

The EC's legislative proposal on the development of CO2 transportation infrastructure and markets, due in the third quarter of 2026, is expected to further help address barriers to the deployment of CCUS and the decarbonization of industry, the commission said.

Platts, part of S&P Global Energy, assessed cement clinker FOB Turkey at $45.5/mt on March 19, unchanged week over week.