GCCA Chief Executive Thomas Guillot reports on members’ efforts towards sustainability.
"Concrete and cement are not just fundamental to constructing roads, bridges and buildings… but fundamental to building a better world... and we have no time to lose.” Those were the words of the UN General Secretary António Guterres, as he addressed the opening of the Global Cement and Concrete Association’s CEO Gathering and Leaders Conference in Zurich, Switzerland, in June 2023. It was the start of a two-day programme of informed debate, a leading line-up of speakers and the fruitful sharing of insights and ideas. GCCA members, affiliates and guests explored how best to deliver our goal of net zero cement and concrete by 2050.
In his address, Guterres set out three ambitions for the cement and concrete industry: 1. End the use of coal-fired power in cement production; 2. Work more closely with governments (especially G20 countries); 3. Speed up decarbonisation and set ambitious emission targets and transition plans in line with UN guidelines. The GCCA, its members, and the whole sector are actively engaged on how best to achieve these ambitions.
As GCCA Chief Executive, my message at the start of the conference had been clear – that we must redouble our efforts to reach net zero, and that every manufacturer in our sector that hasn’t yet done so should join our pledge to eliminate emissions by 2050. It is also clear that governments need to work with our essential industry, to deliver the right policy frameworks.
During the event, we heard from many leaders of our member companies around the world about their experiences of decarbonising, including Mahendra Singhi, CEO of Dalmia Cement Bharat Limited, José Raúl González CEO of Cementos Progreso and Juan Esteban Calle, CEO of Cementos Argos.
José Raúl González, CEO of Cementos Progreso, told the audience about the challenge of eliminating coal use in Latin America, but also stressed that there was a huge opportunity in co-processing. He described how important it is to work together on policy towards net zero. There are 30 companies and 140 cement plants across Latin America, he said, so ‘information is power’ and it is important to work at plant level.
Kailash Jhanvar, CEO of UltraTech Cement, said that with energy being very expensive, India is taking a conscious decision to build new energy-efficient cement plants, with solar power picking up in a big way. His plants, he said, would double the amount of energy they consume from renewables to 60% by 2026.
Hakan Gurdal, from the board of Heidelberg Materials, spoke about the perspective from Africa, which has relatively few limestone deposits and so is currently dependent on imports. “We have to find different solutions,” he said, with an emphasis on local materials and local solutions.
Yeqing Li, CEO of Huaxin Cement, spoke about China’s work to develop solar power and carbon capture for its cement industry. China, he said, currently produces about half the world’s cement - 2.1Bnt/yr. The country’s CO2 emissions will peak by 2030 with the aim of reaching net zero by 2060.
Chatting to our members between sessions, it was clear how much they valued the opportunity to hear different perspectives, share ideas and best practice and hear how our net zero mission is being tackled elsewhere in the world. We explored the essential role of concrete and discussed the need for sustainable new homes to meet UN’s Sustainable Development Goals (SDGs).
Stuart Smith, who leads the structural design team at Arup in Germany, presented some amazing concrete building designs from around the world. “1.1 billion people live in inadequate housing,” he said. “Add another 3bn to the planet by 2050 and that means we need to build 100,000 houses every day. Housing gives you access to education, health and welfare, so it’s absolutely fundamental to sustainable development.”
Sanjay Seth, Senior Director of the Sustainable Infrastructure Programme at the global thinktank TERI, gave an overview of building climate-resilient pathways. TERI is working with the GCCA to build a 2050 Net-Zero Roadmap for the Indian Cement and Concrete Industry.
It was great to hear the customer perspective, and how companies have targets for delivering low carbon concrete, in partnership with suppliers. Rob Wood, CEO of Breedon Group, told the audience that its customer base is “More focused than ever on the sustainability aspects of our products. 37% of Breedon’s sales now come from products with sustainable attributes such as lower carbon or recycled products.”
Guillaume Ricome, Partner at BCG, said that the main challenge to net zero - cost - is one that can be achieved, drawing a parallel with the market development of solar panels. “If you look back 10-15 years, very few people would have thought that solar panels could already be at cost parallel with some of the alternative energy sources,” he said.
We also heard about the importance of a fully global perspective regarding the transition, from Rana Ghoneim, Unit Chief, Department of Energy, UNIDO and Dimitrios Koufos, Head of Sustainable Business, Industry, Agribusiness and Commerce at the European Bank for Reconstruction and Development (EBRD).
Isabelle Spiegel, Chief Environment Officer at the French Construction Company VINCI, told the audience that the company had consciously worked with shareholders to develop and approve a climate plan and now had a goal of delivering 90% of low-CO2 concrete by 2030, in partnership with suppliers.
Day two
In the key session which opened day two, we explored how we can finance the transition to net zero. Jean Pierre Danthine, Economist and former Deputy Chairman of the Swiss National Bank, spoke about what he called the ‘circularity imperative,’ as well as the need to be much more economical in our use of resources and much more responsible with what we consume and produce. He described the costs of getting to net zero as investments “that will provide benefits, like economic stimulus. It’s good for the economy globally – it’s going to generate activity, generate jobs.” Some of these investments would have to be done anyway, he said, “a bit like changing a heating system for a more efficient one.” Jean Pierre cited a McKinsey report which suggested that getting to net zero would cost the world an estimated US$275Tn by 2050 – an average of US$9.2Tn/yr, or 7.5% of GDP.
It was great to hear about work to develop new materials for low carbon concrete, and the work to advance CCUS. The GCCA is proud of its work driving innovation, working with start-ups through our Innovandi Open Challenge and the expertise of researchers and academics involved in the Innovandi Global Cement and Concrete Network (GCCRN).
Beth (Hardy) Valiaho, Vice President, Policy, Regulatory and Stakeholder Relations at the International CCS Knowledge Centre, discussed the new handbook that the GCCA is working on with the International CCS Knowledge Centre. She told the conference that it will help drive CCUS projects, in terms of technology, transport and storage, and utilisation options for CO2. “There’s a huge opportunity and we’re right at the precipice of that for the industry,” she said.
In the final session we discussed the need for governments around the world to develop policies, with contributions from ministers in the Canadian government, which is co-leading on the cement breakthrough. Canada has recently signed an agreement with Heidelberg Materials to develop a large-scale carbon capture and storage system for the production of green cement.
Andrew Noseworthy, Canada’s Assistant Deputy Minister, Clean Technologies, Innovation, Science and Economic Development, told the conference that “government-industry collaboration is quite critical to decarbonisation of this industry. Internationally…there is a collection of challenges which remain in achieving net zero within the sector. The challenges can be tackled through collective action and knowledge sharing.”
Francois-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry, told those gathered, “Canada is committed to supporting the industry to make clean cement and concrete an every day reality - cleaner air, a greener world and good jobs. These successes are made possible thanks to the ambitious work we’re doing together. Let’s seize the moment.”
It was great to hear about work towards new materials for low carbon concrete, and the work to advance CCUS, with important contributions from Professor Karen Scrivener, EPFL, Bodil Recke, Head of Green Innovation at FLSmidth, Dr Katherine Romanak, Research Scientist at University of Texas and Alexander Engh, Deputy Director General at the Norwegian Ministry of Petroleum and Energy, CCS.
Perhaps I should leave the final thoughts to Catherine McKenna, Canada’s former climate minister and chair of the UN’s High-Level Expert Group on Net-Zero Emissions Commitments. A keen swimmer, Catherine reached the Canadian Olympic trails. She likened our road to net zero to competitive swimming – having a long-term goal in mind and taking little, daily, steps to achieving it. “Have the long-term goal of 2050, but recognise you need to do the work every single day,” she said. “And what are we winning? It’s the best prize of all… it’ll leave a more sustainable future for our kids, our grandkids and future generations. And that’s really the prize.”
That is what the GCCA and our members are working towards. Together, we will achieve our goal.
