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CARBON BORDER ADJUSTMENT MECHANISMA VIEW FROM THE CEMENT SECTOR

Koen Coppenholle, CEMBUREAU Chief Executive

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CEMBUREAU 2050 roadmapCO

²reduction along the cement value chain (5Cs: clinker, cement, concrete, construction, re-carbonation)

Full value chain approach

Significant investments

Need legal certainty

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CEMENT & CONCRETE KEY ENABLERS FOR THE LOW CARBON ECONOMY

SUSTAINABLE TRANSPORT RENEWABLE ENERGY SUSTAINABLE CONSTRUCTION

Quarries Clinker Cement Cement(10%-15%)

Water(15%-20%)

Aggregates(65%-75%)

Concrete

limestone grinding

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• Trade patterns in cement are impacted by:

• The increase of cement production capacity at the EU’s doorstep (70 million tonnes of integrated new capacity between 2018-2025), with low capacity utilisation (40-60%)

• New “business models” emerging through the import of CO2-intensive clinker into grinding installations based in the EU

Import trends into the EU

Source: Eurostat

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• CBAM – ETS: linked as part of the Fit for 55 package / environmental measure which also addresses both aspects of carbon leakage (relocation risk + imports of CO2 intensive products)

• Recital 13 Draft Regulation “The CBAM addresses the risk of carbon leakage by ensuring equivalent carbon pricing for imported and domestic products.” (see also Article 1(2))

• Watertight CBAM requires Exports need to be addressed

Indirect costs in scope / Transport

Measuring emissions / installations (ETS) vs products (CBAM)

Timing: imports increasing now / changing business models

Coherence and legal certainty: how to ensure consistency in co-decision across the whole “Fit for 55” package ?

CBAM POINTS OF ATTENTION