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The Global Cement & Concrete Association (GCCA) has been cheerleading at the 2023 United Nations Climate Change Conference (COP28) in Dubai this week with the release of a progress report on the sector’s work towards reaching net zero by 2050. The headline figures are that net CO₂ emissions per tonne of cementitious material fell by 23% in 2021 compared to 1990 based on Getting the Numbers Right (GNR) data. Energy efficiency improved by 19% and the fossil fuel component used by the cement sector has fallen to 80% from 98% in 1990. The GCCA has described 2020 - 2030 as the “decade to make it happen” and has set some targets to back this up. Its members intend to reduce CO₂ emissions per tonne of cement by 20% by 2030 compared to 2020 levels and concrete CO₂ emissions per m3 by 25% over the same time-frame.

The new developments for the cement sector at COP28 so far have been the launch of separate but apparently similar initiatives to help decarbonisation through coordination between nations. The Cement Breakthrough Agenda, backed by the government of Canada and other partners, follows the creation of the Breakthrough Agenda at the 2021 United Nations Climate Change Conference (COP26) whereby designated governments lead so-called ‘Priority Actions’ to decarbonise various sectors. The idea is to collaborate on measures such as policies, regulations and technologies to help reduce the cost of future investment in decarbonisation. The priority actions will be developed in 2023, worked towards in 2024 and then revised on a regular basis thereafter. The German Chancellor Olaf Scholz also launched the so-called ‘Climate Club’ on 1 December 2023 to help developing nations invest in technologies to decarbonise sectors such as cement and steel production. The intention is to set up the technical groundwork for a standardised calculation of CO₂ intensity in selected products, such as cement and steel, set definitions on what net zero is for these sectors and then set up a platform to connect countries with funding and technical support from governments and the private sector. Neither the Cement Breakthrough Agenda nor the Climate Club has mentioned funding though.

Additionally, Holcim announced that it had become a founding member of the Sustainable Markets Initiative’s SMI Circularity Task Force. The group aims to promote the circular economy to the private and public sector. Holcim was keen to point out that it is already recycling nearly 7Mt/yr of construction and demolition waste, with a target of 10Mt/yr pencilled in by 2025.

Other groups are not as upbeat as the GCCA though. The Global Carbon Project, for example, has estimated in its annual Global Carbon Budget that global fossil CO₂ emissions are set to rise by 1.4% year-on-year to 36.8Bnt in 2023. This figure includes both the CO₂ released by cement production and the CO₂ uptake from cement carbonation. Ongoing research by Robbie Andrew, a greenhouse gas emissions scientist at the CICERO Center for Climate Research in Norway and the Global Carbon Project, found that process emissions by the cement sector fell for the first time since 2015 in 2022, to reach 1.61Bnt. This decrease was most likely due to China’s falling cement production in 2022, stemming from a downturn in the local real estate sector. However, both the data from GCCA and the Global Carbon Project may be right simultaneously as they look at the emissions of the cement sector in different ways.

The GCCA’s job is to advocate for the cement and concrete sector and it is presenting itself well at COP28. Since its formation, it has set up roadmaps, encouraged collaboration and innovation, and is now reporting back on its progress. Net zero remains the goal by 2050, but the GCCA is being upfront about the role carbon capture, utilisation and storage (CCUS) is expected to play after 2030 and the lack of any full-scale CCUS units so far. Yet it is tracking what has happened so far through the Green Cement Technology Tracker in conjunction with Leadership Group for Industry Transition (LeadIT).

As for the rest of COP28, various reports have been aired in the international press about whether the conference will call for a formal phase out of fossil fuels in some form or another. Whether it actually happens is another matter entirely, especially considering that the president of COP28 is the chief executive officer of the Abu Dhabi National Oil Company, and any eventual language would likely be vague. Yet the work by the GGCA and others has started to make the unthinkable a little more thinkable.

US: The Portland Cement Association (PCA) has elected Massimo Toso as its next chair. He is the current president and chief executive officer (CEO) of Buzzi Unicem USA and has worked as the vice chair of the association. He succeeds Filiberto Ruiz, president and CEO of Votorantim Cimentos North America, in the post.

Monica Manolas has been elected as vice chair. She is the first woman in the 21st century to be elected to the position and she currently works as the president of Ash Grove East. Jorge Wagner, CEO of Votorantim Cimentos North America, was also elected to the PCA Board of Directors.

India: Dalmia Cement (Bharat) has appointed Puneet Yadu Dalmia as its managing director and chief executive officer (CEO) for a five-year term with effect from 8 December 2023. He succeeds Mahendra Singhi, who will become the strategic advisor to the managing director and CEO.

Puneet Dalmia has been the managing director of parent company Dalmia Bharat since 2004. Prior to this he co-founded JobsAhead.com in 1999, which was sold to Monster.com in 2004. He is also the chair of the Development Council for Cement Industry (DCCI) set up by the Government of India in 2021. He holds a Master of Business Administration (MBA) from the Indian Institute Of Management in Bangalore and an undergraduate degree from the Indian Institute of Technology Delhi.

India: Shree Digvijay Cement has appointed Ramanujan Krishnakumar as its chief executive officer and managing director with a five year period with effect from 16 December 2023. He succeeds KK Rajeev Nambiar, who has decided to retire early due to personal reasons.

Krishnakumar, aged 53 years, joined Shree Digvijay Cement in 2015 and has worked as its Plant Head. Prior to this he worked for ACC, where he was in charge of the engineering department at the Wadi plant. He also played a key role in the erection and commissioning of a 15MW coal-based power plant at ACC’s Madukkarai plant. He holds a degree from the Bhilai Institute of Technology in Durg.

India: Ambuja Cements has completed its acquisition of a 54% stake in Sanghi Industries for an enterprise value of US$622m. It has funded the purchase through internal accruals. Following the acquisition, Ambuja Cement’s parent company, Adani Group, now has a cement capacity of 75Mt/yr, up by 9% from 69Mt/yr. It has also gained 1Bnt of limestone reserves.

Ambuja Cements said that the transaction would allow it to accelerate its coastal strategy in the west of the country with the aim of reaching a regional cement production capacity of 15Mt/yr. It intends to expand the captive port at the Sanghipuram cement plant to accommodate larger vessels to target markets in Gujarat, Maharashtra, Karnataka and Kerala by 2026. Debottlenecking, fuel mix changes and solar and wind projects are also being considering at the site.

US: Terra CO₂ has entered into an exclusive agreement with Eagle Materials, under which the cement producer will set up plants to produce Terra CO₂’s supplementary cementitious materials (SCM) in three cities, including Greater Denver in Colorado. Terra CO2's SCM consists of ground, heated glass spheres made from silicate-containing igneous rocks and sediments, which can be used in cement production to lower CO₂ emissions by 70% compared to ordinary Portland cement (OPC).

Terra CO₂'s chief executive officer Bill Yearsley said “New climate tech needs to be deployed quickly to meet 2030 and 2050 climate goals. Terra is working hard to accelerate the deployment of its commercial plants through strategic partnerships, deploying more capital and shortening timelines. We are thrilled to work with a partner like Eagle Materials to build commercial plants for sustainable construction, and act on this urgency through our shared commitment to action. In the absence of a 'climate tech express lane' from the government, working with industry leaders is key to innovating and expediting low-carbon solutions for the industry."

Kenya: Frontier Energy subsidiary Momnai Energy has begun building two solar power plants at sites belonging to Bamburi Cement. One 14.5MW plant will be situated at the producer’s 1.1Mt/yr Mombasa cement plant, while another 5MW plant will be situated at its Nairobi grinding plant. When commissioned, they will cover 30% of the producer’s energy consumption. Momnai Energy will finance, manage and maintain the solar power plants on the basis of a power purchase agreement (PPA) signed between the parties in 2021.

Bamburi Cement chief executive officer Mohit Kapoor said that the project ‘represents one of Kenya's most substantial commercial solar endeavours undertaken by a cement company, and a first for Holcim in Sub-Saharan Africa.’ He added that it will lead to cost savings, reduced vulnerability to load shedding and ‘substantial’ progress towards achieving net zero CO₂ emissions.

UK: The World Cement Association (WCA) has welcomed the introduction of the revised BS 8500 standard, which allows for a wider range of Portland limestone cement (PLC) and ground granulated blast furnace slag (GGBFS) combinations in concrete. WCA chief executive officer Ian Riley, however, described the revision as ‘not breaking new ground but catching up.’ He called on the UK and other jurisdictions to begin enacting performance-based standards.

Riley said “It is good to see BSI making this change to concrete standards, however, this is still a very modest step forward. Firstly, ground limestone has been used successfully as a cement component in many markets for decades. Secondly, in order to produce concrete with the lowest embodied carbon and the highest circularity, we need to move away from standards that require particular recipes.”

UK: Carbon Re has published a whitepaper entitled ‘Levers of Change’ that examines six key levers to accelerate decarbonisation in the cement industry. The document is intended to help companies in the sector navigate related regulatory and commercial factors. The six levers it examines are: standards; regulations; customer demand; technologies; capital; and financing and commercial advantages.

The whitepaper can be downloaded here: https://carbonre.com/levers-of-change

China: China National Building Material (CNBM) plans to rearrange shareholding in Sinoma Cement between its subsidiaries. On 4 December 2023, fellow CNBM subsidiary Sinoma International Engineering agreed to buy US$174m-worth of shares in Sinoma Cement. Upon completion of this, Sinoma International Engineering and New Tianshan Cement will together buy US$975m-worth of shares. Following these subscriptions, Sinoma Cement’s share capital will rise by 67%, to US$436m. New Tianshan Cement’s total stake in the company will be 60%.

The group’s first-half 2023 interim report recorded Sinoma Cement as a 100% subsidiary of New Tianshan Cement.