Displaying items by tag: Government

Belarus: The US government sanctioned the management company of Belarusian Cement Company on 6 December 2023. PrimePress News has reported that 10 other Belarus-based companies and eight individuals were also added to the US sanctions list. This is the latest group of additions since the US and its allies began sanctioning Belarusian entities in connection to election rigging, human rights abuses and complicity in the on-going Russian invasion of Ukraine.

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.

Australia: Western Australia’s environment minister Reece Whitby has questioned the efficacy of tests submitted by Cockburn Cement in relation to its Munster lime plant in May 2023. The tests showed successes in odour reduction during sand feeding at the plant’s Kiln 6. Business News Western Australia has reported that the government and an independent expert have raised ‘areas of concern’ as to whether the trial represents normal operating conditions for the kiln.

David Scaife, who represents Cockburn District in the Western Australia Legislative Assembly, said "My gripe is not with the workers, it is with the senior management and the directors of Cockburn Cement and its owner, Adbri, who have refused to do the right thing either by moving the lime manufacturing operations to its Kwinana facility or at least making the investments necessary to eliminate the odour."

Bolivia: The Bolivian Attorney General’s Office says that is open to meeting representatives of Sociedad Boliviana de Cemento (SOBOCE) in order to negotiate a ‘better arrangement’ following Bolivia’s nationalisation of a stake in SOBOCE subsidiary Fábrica Nacional de Cementos (FANCESA) by supreme decree in 2010. SOBOCE owes FANCESA US$108m in damages for unfair competition since that time.

SOBOCE said "SOBOCE, together with its shareholders of Grupo Gloria del Peru, will continue to resort to judicial and/or arbitration channels (national or international) for the recognition of their rights. We believe in justice and in the legitimate right that we have, since the Bolivian Constitution guarantees the payment of compensation in case of expropriation."

Bolivia: The Permanent Court of Arbitration has found itself ‘without jurisdiction’ to resolve a claim by Consorcio Cementero del Sur, Grupo de Inversiones Gloria Bolivia, SOBOCE and Yura Inversiones Bolivia against the Bolivian government over the nationalisation of a stake in FANCESA. Local press has reported that Bolivian Attorney General’s Office welcomed the finding as a ‘resolution of the case in favour of the Bolivian state.’

Vietnam: Cement plants produced 110Mt of cement during the 11-month period up to the end of November 2023, Việt Nam News has reported. The government’s General Statistics Office recorded a 4.5% year-on-year drop in national production volumes of cement in the year to date.

Canada: The Cement Association of Canada (CAC) says that provisions for investments and supportive measures in the government’s Fall Economic Statement 2023 will help to ensure the successful roll-out of carbon capture, utilisation and storage (CCUS) for industrial decarbonisation. The statement commits the government to advancing a CCUS Investment Tax Credits (ITC) scheme.

CAC president and CEO Adam Auer said “We commend the government’s recognition of the importance of CCUS in achieving our climate objectives. The cement industry is committed to reducing its carbon footprint, and these investments will facilitate the deployment of innovative technologies that are essential for achieving our Concrete Zero sustainability action plan objectives.”

UK: The Mineral Products Association (MPA) has called on the UK government to publish its promised response paper to consultations over a proposed UK carbon border adjustment mechanism (CBAM) for imports of goods produced by heavy industries, including cement. This follows the failure of the government’s latest budget for 2023 to commit to the development of a national CBAM. The MPA said that it was ‘deeply disappointed’ with the outcome.

MPA executive director for energy and climate change Diana Casey said “The delay in committing to a CBAM sends the signal that the UK is not the place to invest. Cement is essential to our everyday lives. The construction of our homes, hospitals, offices and much more depend on it. We cannot take its supply for granted and neither can we put ourselves at risk of unstable international trading markets. Levelling the carbon cost between domestic production and imports is vital to attract the investment required to decarbonise and ensure our long-term security of supply. The UK government must urgently commit to a CBAM on cement.”

Malaysia: UEM Group, a subsidiary of the Malaysian sovereign wealth fund, has revealed that it has shortlisted prospective buyers for Cement Industries of Malaysia (CIMA). The Edge Malaysia newspaper has reported that the list is comprised of four local entities, one entity based in China, one in Germany and one in the Philippines. None of the bidders is reportedly an existing competitor of CIMA in the Malaysian cement sector.

CIMA operates the 1.3Mt/yr Bahau cement plant in Negeri Sembilan. UEM group announced that it was seeking a buyer for the business in February 2023, at which time it was seeking a valuation of US$230m for it.

Kazakhstan/Kyrgyzstan: The government of Kazakhstan’s Jambyl Region says that investors have come forward to support construction of a proposed railway between the region and Kyrgyzstan. Central Asia News has reported that a major cement plant construction project is underway in Jambyl Region. Regional governor Yerbol Karashukeyev said that Kyrgyzstan is undergoing a ‘building boom,’ including in the major market of Bishkek, 20km from the border with Jambyl Region.

Karashukeyev said “In view of the rapid development of the market in Kyrgyzstan and the production of large volumes of construction materials in Kazakhstan, it is worth developing cooperation.”