Cross-geography policies on carbon capture, utilisation and storage (CCUS) are not yet strong enough to drive the number of projects needed for the cement industry to be on track to meet Net Zero by 2050.
That is the verdict of a new report from the Global Cement and Concrete Association (GCCA), coinciding with COP29.
CCUS is a ‘critical lever’ to decarbonise cement and concrete, because unlike other sectors, switching to renewables is not sufficient to deliver decarbonisation, since two-thirds of CO2 emitted is from the calcination of limestone.
Policy needs to address public financing, recognition of carbon removal, transport and storage infrastructure, access to decarbonised electricity, carbon pricing and demand for low-carbon products.
On the plus side, support in Europe, US and Canada has enabled the industry to be on track for its 2030 target of 10 plants at an industrial scale, although even here more policy work is needed.
Among the 42 projects (research and commercial) to be completed by the end of 2030, four different carbon capture technologies are being applied. Total global CO2 emissions from the sector in 2020 were in excess of 2.5 gigatonnes.
Key CCUS policy requirements
The policy landscape needs to be in place by the middle of the decade to ensure the necessary ramp up in carbon capture from 2030, for the sector to stay on track.
Alongside appropriate carbon pricing mechanisms to create a level playing field on carbon costs and avoid carbon leakage, CCUS needs to be integrated into public financing to cover initial investments and early costs to foster commercial growth.
Fair recognition of all carbon removal measures needs to be provided, either as part of national or regional emissions trading systems or by developing tailored accounting rules.
CCS construction permitting processes need to be accelerated and infrastructure regulated, as well as reliable access to sufficient and competitively priced decarbonised electricity.
Public-private partnerships need to be established to speed up CCUS, including share investment in CO2 transport and storage networks.
The report also stipulates integrating CO2 performance in public procurement, building standards and construction codes alongside traditional criteria to create demand for carbon-neutral items.
The transition towards carbon neutral economies is dependent on the acceptance of carbon constraints and cost by all actors along the economic value chains, the report notes.
