New report predicts rising pressure on producers to cut emissions

A new report by Moody’s Investors Service suggests that the cement industry could face demand growth of 12-23 per cent by 2050, resulting in a challenge to meet this demand and still make large-scale carbon emissions cuts.

"Regulation of the industry is likely to increase and a rise in carbon prices under the EU-ETS combined with a reduction in allowances to the cement sector would have a significant impact on the cash flow of EU cement producers, in the event cement makers were unable to pass along the increased carbon price to consumers," said John Thieroff, vice president, Moody Investors Service.

Furthermore, the report noted that the lack of clinker substitutes and regulations on cement quality will influence the extent of decarbonisation. Although it will vary considerably by region, availability of clinker substitutes at a meaningful scale could be two decades away, according to the report.