European Bank for Reconstruction and Development helps to reduce carbon emissions from the Egyptian cement industry

Egypt: The Egyptian cement industry could reduce its CO₂ emissions by 2030 by following new recommendations in a report from the European Bank for Reconstruction and Development (EBRD). These recommendations have been published in the EBRD’s report, ‘Policy roadmap for a Low-Carbon Egyptian Cement Industry,’ which highlights the need for decisive and collaborative action by the industry’s stakeholders in order to achieve a reduction in CO₂ emissions.

“Improving environmental standards in the cement industry and offering commercial incentives is realistic and vital for the profitability of the sector,” said Philip ter Woort, the EBRD Director for Egypt.

The roadmap outlines recommendations for policy actions from the Egyptian government that may provide effective incentives for the cement industry to improve its energy efficiency and to reduce CO₂ emissions. The report points out that the potential for improvement is high despite that 50% of the Egyptian cement industry’s production capacity was built after 2000, and is using up-to-date equipment and clinker kilns that use best available technology (BAT).

Until 2014, the Egyptian cement industry, one of the most energy intensive industries in the country, had primarily used state-subsidised natural gas and heavy fuel oil to fire its cement kilns. However, following a gradual phasing out of the energy subsidies, Egyptian cement companies have switched to using high CO₂ intensive fuels such as coal and petcoke.

The roadmap suggests that in order to reduce CO₂ emissions, the industry should reduce the clinker content in cement, increase the use of alternative fuels, improve electrical energy efficiency and use more renewable sources of energy. Under one of the more ambitious scenarios, 2.2Mt/yr of coal will no longer have to be imported by 2030, saving about US$200m. Furthermore this would lead to a reduction in CO₂ emissions to about 2% below the historic level prior to the fuel switch. In addition the cement industry could increase its usage of alternative fuels substitution.

The report was initiated by the EBRD, in cooperation with Egypt’s Ministry of Industry and Trade, the Egyptian Environmental Affairs Agency (EEAA), the Chamber of Building Materials Industries/Cement Industry Association (CBMI) and the Cement Sustainability Initiative (CSI) of the World Business Council for Sustainable Development (WBCSD).