Carbon Re has launched its white paper - ‘Levers of Change’ - to serve as a compass for navigating the regulatory and commercial factors steering decarbonisation efforts in cement production. According to the company, the white paper provides information for stakeholders to assess the landscape and identify actionable strategies within their specific contexts.
At the heart of the paper is an exploration of six crucial decarbonisation levers relevant to the cement industry: standards, regulations, customer demand, technologies, capital and financing, and commercial advantages. Carbon Re analyses the evolving global standards and regulations shaping the future of cement production. From eco-friendly mandates by global bodies to the roll-out of carbon taxes and trading schemes, the industry faces unprecedented pressure to adopt greener practices.
‘Levers of Change’ also delves into the burgeoning demand for low-carbon cement products. Examining customer preferences from construction companies to regulatory bodies, the paper spotlights initiatives that champion low-emission cement solutions, setting ambitious targets for a sustainable future.
Turning to the cement production process, the white paper outlines established and emerging decarbonisation technologies, from substitute cementitious materials to alternative fuels and cutting-edge solutions like AI, to provide a blueprint for the industry's transformation. Beyond environmental benefits, decarbonisation initiatives yield commercial advantages by reducing production costs and enhancing the reputation of cement producers. As the market for green cement grows, stimulated by customer demand and public procurement policies, there's an unprecedented opportunity for industry players to become major contributors to this transformative shift.
Recognising the financial implications of decarbonisation, ‘Levers of Change’ also underscores the need for diverse sources of capital. Sustainability-linked loans (SLLs) and green bonds emerge as popular options, complemented by government incentives such as tax breaks, grants, and low-interest loans to expedite the adoption of green technologies.
