Displaying items by tag: CO2
Lafarge named in top 10 list of companies surrendering offsets into EU Emissions Trading Scheme
20 November 2012UK: French multinational cement producer Lafarge has been named in a list of top ten companies surrendering offsets into the European Union's (EU) emissions trading scheme (ETS) by environmental campaign group Sandbag. According to Sandbag's report 'Help or Hindrance? Offsetting in the EU ETS,' Lafarge purchased 181,425 certified emissions reduction (CERs) credits in 2011.
Carbon offsetting by the European cement sector grew by 246% in 2011 compared to 2010 figures. Carbon offsetting by all European companies grew by 85% in 2011. The companies policed by the EU's Emissions Trading Scheme (ETS) submitted a total of 254 million credits to offset 13% of their carbon emissions. Sandbag's report observed that the majority of these offset credits were due to be banned from the scheme in 2013.
Lafarge surrendered 181,425 credits in 2011, HeidelbergCement surrendered 101,314 credits in 2008, Miebach Gruppe surrendered 65,813 credits in 2011, Colacem surrendered 59,756 credits in 2009 and Italcementi surrendered 37,867 credits in 2010. Sandbag did not report the breakdown of so-called 'grey' and 'green' credits for the cement industry.
"Offsetting was supposed to be a price containment measure to ensure that carbon prices didn't rise too high, but carbon prices have remained low due to excess supply in the market. Offsets are contributing significantly to this oversupply and are now depressing prices so low that the EU ETS almost ceases to have a function," said Rob Elsworth, policy officer at Sandbag.
Cemex recognised for carbon emissions reduction
02 November 2012Mexico: Cemex has been named by the Carbon Disclosure Project (CDP) as the best Latin American company in terms of climate change data disclosure and one of the top ten in overall carbon emissions performance.
The rankings were announced during the launching of the CDP's latest report, CDP Investor Latin America 2012, which comprises data on the emissions of greenhouse gases from 32 major companies in Argentina, Brazil, Chile, Mexico, and Peru. The CDP is a UK-based independent non-governmental organization that possesses the world's largest database of self reported climate change data.
According to data released by Cemex, the company achieved a 22.7% reduction on CO2 net emissions per ton of cement produced in 2011 relative to its 1990 baseline. Cemex's rate of alternative fuel use rose to approximately 25% in 2011, an improvement from its rate of 20.3% in 2010. Cemex is on track to reach its 2015 target of 35% alternative fuels substitution rate.
UK: Lafarge has marked its 10th year of sustainability reporting in the UK with the release of its 2011/2012 Sustainability Reports.
Lafarge says that it has made significant investment in developing its sustainable credentials. Waste and water consumption have been cut by 92% and 88% respectively in the cement business since reporting began in 2001. The latest reports also show major advances in the reduction of emissions to air, an increase in the amount of material being moved by rail, greater bio-diversity in its landholdings and improvements in health and safety performance.
"Despite the economic downturn and challenging conditions in the construction market in recent years we have continued to invest in, and demonstrate our commitment to sustainability across, our UK businesses," said, the president of Lafarge UK, Dyfrig James.
Key highlights of the 2011 Sustainability Report for Lafarge Cement, which covers the period 2009 - 2011 inclusive in the UK include:
1. A 17% reduction in CO2 emissions through increased usage of sustainable, waste-derived fuels such as waste tyres and solid recovered fuel (SRF) in manufacturing processes.
2. A 17% reduction in the use of electricity driven by the implementation of Lafarge Cement's 'Golden Rules of Energy Management.'
3. A 26% cut in emissions to air in 2011.
4. Major reductions in waste production, with 76% of all non-hazardous waste sent off site now being recycled.
5. Progression in the regeneration of landholdings including granted approval for the creation of a mixed-use community including 500 new homes at the former Northfleet Works.
6. Significant improvements in health and safety performance, including a 31% decline in first aid instances in 2011 and Cookstown Works achieving a global record of 10 years with no Lost-Time Incidents (LTIs).
7. Piloting of independent water footprint assessments at a number of plants to identify ways to increase efficiency of water use.
8. Winning the Environment Agency Water Save Award for the Cauldon Shale Lake Project – the creation of a closed loop water system to recirculate water for gas conditioning and industrial cooling at Cauldon Works.
9. Growth in sales of lower CO2 packed cements from 51% in 2009 to 54% in 2011.
Lafarge also made improvements in its extensive UK ready-mix concrete operations, which saw a 30% reduction in the CO2 emissions resulting from concrete production compared to figures recorded in 1990 and a 16% reduction in CO2/t between 2010 and 2011.
Is it worth producing cement in the UK?
18 July 2012According to government advisors cement producers pay more in the UK than other nations for their electricity and it's getting worse.
A Department for Business, Innovation and Skills (BIS) report published on Friday 13 July 2012 has shown that firms in the UK will be forced to pay an extra Euro36 in green taxes on top of the market price they pay for every megawatt hour of electricity by 2020 due to climate policies. This compares with Euro22 in Germany, Euro20 in Denmark, Euro19.3 in France and Euro12.7 in China.
As the Mineral Products Association (MPA) put it, "...cement is an internationally traded commodity and, if it costs more to make it here than to import it, then we are threatening a strategic indigenous manufacturing industry for no environmental gain." Or to put it more bluntly, if the cost of importing cement from France to the UK is less than the energy saving then say 'goodbye' to the UK cement industry. The issue raises one of the core problem of any carbon tax in a global economy. If your neighbours don't have the same tax as you then they can undercut you. Similar arguments rage in Australia and the US.
The UK will be the first country with legally binding targets for greenhouse gas emissions beyond 2020, with a pledge to introduce a carbon floor price of Euro19.98/t in 2013. As Edwin Trout explained in his recent article in Global Cement Magazine on the British Cement Industry in 2011 and 2012 the government took steps to address this in November 2011 with a Euro318m package for energy-intensive industries. Unfortunately as the MPA has now pointed out, the cement industry is ineligible for the first Euro140m of this package because the EU has ruled against such support for the sector in relation to the EU Emissions Trading Scheme.
Unsurprisingly alternative fuels trials are thriving in the UK, such as that at Lafarge UK's Aberthaw plant, which celebrates 100 years of operation this weekend.
UK: The Mineral Products Association (MPA) has demanded that the UK government protect the domestic cement industry from rising electricity costs. The comments came in the MPA's response to a Department for Business, Innovation and Skills (BIS) report has stated that electricity bills for UK manufacturers were higher than other key nations because of environmental regulation.
Commenting on the BIS report the MPA said that the new data confirmed what it had been telling the government since 2011. The MPS added the report clearly shows that the UK cement industry must receive some help if it is to survive and supply the UK's low carbon economy.
"The Government now has the evidence to corroborate the industry evidence," said Nigel Jackson, chief executive of the MPA. "It is time for them to respond and take the action we have been urging them to take for so long and to come forward with their long awaited Energy Intensive Industries Strategy."
The BIS report stated that electricity bills for UK manufacturers were higher than other key nations because of climate change levels. It added that by 2020, green taxes will be double those in other EU nations and many times higher than those in the US. According to the report firms in the UK will be forced to pay an extra Euro36 in green taxes on top of the market price they pay for every MWH of electricity by 2020 due to climate policies. This compares with Euro20 in Denmark, renowned for its renewable energy drive, Euro19.3 in France, Euro22 in Germany, Euro12.7 in China and a fall in the US and Russia.
In its response to the BIS report, the MPA stated that the UK cement industry had reduced its CO2 emissions by 57% since 1990 confirmed its commitment to tackling climate change. It approved of the government's 2011 autumn statement to compensate some energy intensive industries against electricity costs by Euro318m. Yet it also pointed out that the UK cement industry will not qualify for a share of the first Euro140m of this because the EU has ruled against such support for the sector, in relation to indirect costs associated with the EU Emissions Trading Scheme.
UK: The head of the UK Mineral Products Association (MPA), Nigel Jackson, has backed a 3 October 2011 announcement by the Chancellor of the Exchequer, George Osborne, in which he said that environmental laws and regulations were 'piling costs' on to the energy bills of homeowners and business and that "we're not going to save the planet by putting our country out of business."
Commenting ahead of Osborne's Autumn Statement, which is expected to be on 29 November 2011, Jackson said, "I could not agree more with the sentiment and look forward to seeing how that welcome statement translates into positive action to reduce the complexity and plethora of energy related legislation that exists, as well as the actual amount of additional cost that this industry now faces."
Jackson additionally stressed the importance of keeping strategically important energy-intensive industries, such as cement and lime, in the UK. He warned against over-regulation of such industries, saying that it would not only threaten the UK's security of supply but would also export jobs and carbon for no environmental gain. Jackson said, "When the Chancellor announces the government's proposed package of help with energy costs for those energy-intensive industries at risk of 'carbon leakage' we need to see the cement and lime industries included. Government must act decisively to signal that it wants to retain viable domestic cement and lime industries in the UK." Jackson stressed, "This is the Chancellor's opportunity to put his words into practice and help protect British jobs, British manufacturing and British business. We need this Government to be the most enterprising ever."
Adelaide Brighton reveals first half profit
18 August 2011Australia: Cement and lime manufacturer Adelaide Brighton Ltd (AB) has announced that its half-year profit for the first six months of 2011 declined by 10.6% amid weakness in the housing sector. The company stressed, however, that it was confident with regard to its future earnings. AB's net profit fell to USD64.67m for the six months to 30 June 2011 from USD72.0m in the first half of 2010. Its revenue declined by 2.2% USD531.5m.
While outlining a mixed to steady outlook of demand for its building products, AB said that it was, "confident on future earnings due to its strong exposure to infrastructure and resources."
Covering off the furore over Australia's potential CO2 tax, AB said that it had, "already significantly reduced its carbon footprint by using alternative fuels and sourcing alternative raw materials." It added that it had already closed inefficient clinker facilities and was now the largest importer of cement and clinker into Australia. This, it said, has helped to reinforce a strong position for the company relative to domestic cement and clinker competitors.
AB's apparent stance is distinctly opposed to those of the members of the public (who came out in protest in the capital Canberra on 16 August 2011), Opposition politicians, BCG Cement and the Cement Industry Federation, which have variously warned of massive job losses in the cement industry, price increases and emission leakage to countries with weaker environmental regulations.
Chris Harris from AB said that the company believed that the carbon tax, as proposed, would not have any significant impact on the continuation of AB's successful growth strategy of the past decade and that AB would continue its successful long-term strategy of operational improvement, growth in the lime business and vertical integration into downstream markets.
Australian CO2 tax plans 'threaten 1800 cement jobs'
26 July 2011Australia: The Federal Opposition has claimed that 1800 cement industry jobs will be at risk from Labour's carbon tax and proposed new shipping rules. Nationals leader Warren Truss says the USD2.2bn-a-year industry is facing a 'double-whammy' under the Gillard government, saying that domestic cement manufacturers could be killed off by 'dirtier' imports, made cheaper under the carbon tax.
"The paradox is Australian cement production is a leader in low-emission technology and any shift to imports will force global CO2 emissions to rise," said Truss. He added that the Australian cement industry has the world's second lowest greenhouse gas emissions behind Japan. "The carbon tax will price Australia's cleaner cement out of the market, giving the green light to our international competitors to boost their higher CO2-emitting production and flood Australia with dirty cement. The Australian cement industry will be crushed by competitors who will not be paying a carbon tax."
Mr Truss said Labor was also rewriting the Navigation Act to force businesses that ship products around Australia to use domestic union-dominated vessels. He said 'unionised shipping' in Australia cost significantly more than current international market rates and would be another blow to the cement industry.
"Right now it costs about the same to ship cement from China to Australia as it does to ship it from Adelaide to Port Kembla," he said. "Under the Gillard government's sop to the maritime union, our biggest competitors in cement - China, Indonesia, Taiwan and Thailand - will dramatically undercut Australian suppliers on shipping costs alone."
The Cement Industry Federation (CIF) backed Truss's claims, saying the shipping reforms would impose new cost burdens on the sector. "Australian manufacturing cannot afford adding further cost imposts as a result of regulatory changes to coastal shipping," said a CIF spokeswoman in a statement. "While improving job security and conditions for Australian-based shipping crew is important, this must be weighed against the job security for manufacturing workers in primary production and manufacturing industries."
Meanwhile, Truss said a large section of the cement manufacturing sector would not be compensated under the carbon tax plan. The compensation package would apply only to producing clinker, the first stage of making cement. "The milling stage to make cement receives no compensation," he said.
Truss dismissed federal Treasurer Wayne Swan's comments that predictions of job losses in the manufacturing industry as a result of the carbon tax were 'doom and gloom.' "It is simply a nonsense for Mr Swan to suggest that his tax on Australian industry is not going to affect the competitiveness of Australian producers," he said. "We will be the only cement producers in the world and the only manufacturing industry in the world that pays a carbon tax. It naturally makes Australian products less competitive and will cost Australian jobs."
Firms to net a Euro50m carbon windfall
18 July 2011Ireland: The Irish cement industry stands to make windfall profits of up to Euro50m 'at the taxpayers' expense,' according to sources familiar with the EU's emissions trading scheme (ETS). The sources estimate that companies such as CRH, Quinn Cement and Lagan Cement have made Euro26m over the past five years from the over-allocation of carbon credits by the government.
The sources estimate that the cement industry stands to make a further Euro25m when the next round of carbon credits is allocated under the ETS. The government allocates a certain amount of emission permits to companies for free. The idea is that polluting companies would buy credits in the market if they exceeded the permitted amount of emissions.
This system is known as 'cap-and-trade' but an initial over-allocation arose, partly because of the construction bust which meant that firms did not produce as much cement as expected. The sources said the transfer was a waste of public funds at a time when the exchequer was financially stressed. They also argued that the effect was to distort the market in favour of making cement.
The estimate of the scale of the subsidy comes after the Economic and Social Research Institute (ESRI) noted earlier in 2011 that the current EU ETS provided potentially large windfall gains for certain industries, such as electricity generation and cement production. The ESRI argued that such windfall gains should be recaptured by society through the tax system.
A spokesman for Cement Manufacturers Ireland did not dispute the figures, saying that the industry had invested millions of Euros in new technology upgrades to become one of the most efficient in Europe. "The current recession was not predicted when allowances were allocated under rules proposed by the Commission," he said.
CNBM reports on environmental goals
15 July 2011China: China National Building Material Group Corp (CNBM), China's largest building materials manufacturer, invested about USD131m in energy saving and emission reductions in 2010, according to the company's 2010 corporate social responsibility report. The construction industry has long been known for its heavy pollution and high energy use.
The Beijing-based, state-owned company gave top priority to fulfilling its corporate social responsibility (CSR) in terms of energy saving. "The company has dedicated itself to energy conservation by investing in clean technology," said Song Zhiping, chairman of CNBM. According to Liu Baoying, vice-president of CNBM, the cement sector is a major contributor to the company's energy consumption, accounting for more than 90% of the total.
"The company's energy consumption in the cement sector was down by 23% during the period of the country's 11th Five-Year Plan (2006-2010), mainly because of our efforts to eliminate poor production methods and upgrade technology," said Liu. CNBM has disposed of 51 energy-inefficient cement operations with a total capacity of 6.8Mt/yr over the past five years, according to its CSR report.
The country as a whole has also attached great importance to decreasing its carbon footprint with the government targeting reductions in CO2 emissions for every unit of gross domestic product by between 40-45% by 2020 compared with 2005 levels. In addition, CNBM has made substantial efforts in developing new building materials in a bid to reduce energy consumption.
Beijing New Building Material (Group) Co Ltd (BNBM), a subsidiary of CNBM, mainly focused on manufacturing houses made of new building materials that can save electricity, water and materials during construction. They can also reduce by 60-90% the energy used when the buildings are functional, said Cui Lijun, general manager of BNBM.