8/12/2014

CementIndustryIsatCenterofClimateChangeDebateNewYorkTimes

October26,2007

CementIndustryIsatCenterofClimateChangeDebate
ByELISABETHROSENTHAL

CorrectionAppended
PARIS,Oct.23InboomingeconomiesfromAsiatoEasternEurope,cementisliterallytheglueof
progress.Abindingagentthatholdstheotheringredientsthattogethermakeconcrete,cementisacrucial
componentinbuildingsandroadswhichiswhysome80percentofitismadeandusedinemerging
economies.
Chinaalonemakesanduses45percentofworldwideoutput.InplaceslikeUkraine,productionisdoubling
everyfouryears.
Butmakingcementmeansmakingpollution,intheformofcarbondioxideemissions.Cementplants
accountfor5percentofglobalemissionsofcarbondioxide,themaincauseofglobalwarming.Cementhas
noviablerecyclingpotentialeachnewroad,eachnewbuildingneedsnewcement.
Now,greenincentivesmaybeincreasingpollution.TheEuropeanUnionsubsidizesWesterncompanies
thatbuyoutmodedcementplantsinpoorcountriesandrefitthemwithgreentechnology.Butthegreenest
technologiescanreducecarbondioxideemissionsbyonlyabout20percent.
SowhenWesterncompaniesrevampEasternfactories,theemissionsdecreaseforeachtonofconcrete
produced.Buttheamountofcementproducedoftengoeswayup,asdoesthetotalpollutiongenerated.
Manyoftheworldsproducersacknowledgetheconundrum.Thecementindustryisatthecenterofthe
climatechangedebatebuttheworldneedsconstructionmaterialforschools,hospitalsandhomes,said
OlivierLuneau,headofsustainabilityatLafarge,theglobalcementgiantbasedinParis.Becauseofour
initiatives,emissionsaregrowingslowerthantheywouldwithouttheinterventions.
Cementmanufacturershaveinvestedmillionsofdollarsingreenprograms,liketheCementSustainable
Initiative.Lafarge,aleaderindoingso,hasimprovedefficiencybydecreasingemissionsto655poundsof
carbondioxideforeachtonofcementin2006emissionsfrom763poundsin1990.Itsgoalistogetto610
poundsforeachtonby2010,butthecompanysaiditexpecteditwouldbedifficulttogetmuchbelowthat
number.Lafarge,whichbought17cementplantsinChinain2005andhasholdingsthroughoutEastern
EuropeandRussia,acknowledgesthatitstotalemissionsaregrowingeachyear.
Manyengineers,likeJulianAllwood,aprofessorattheUniversityofCambridgeinEngland,see
sustainablecementassomethingofacontradictionintermslikevegetarianmeatballs.
Cementposesabasicproblem:thechemicalreactionthatcreatesitreleaseslargeamountsofcarbon
dioxide.Sixtypercentofemissionscausedbymakingcementarefromthischemicalprocessalone,Mr.
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LuneauofLafargesaid.Theremainderisproducedfromthefuelsusedinproduction,althoughthose
emissionsmaybemitigatedwiththeuseofgreenertechnology.
Demandisgrowingsofastandcontinuestogrow,andyoucantcapthat,Mr.Luneausaid.Ourcore
businessiscement,sothereisalimittowhatwecanchange.
CarbontradingarrangementsgreenincentivescreatedbytheEuropeanUnionandtheKyotoagreement
oncurbinggreenhousegasesencouragepurchasesinEasternEuropeandRussiabyLafargeand
competitors,likeHeidelbergCement.Buttheyalsoallowmanufacturerstoincreasetotalproduction,both
inthedevelopingworldandathome.
TheEuropeanUnioneffectivelylimitsproductionofEuropeancementmakersintheirhomecountriesby
cappingtheiryearlyemissionsallowances.ButtherearenolimitsinplaceslikeUkraine.
Moreover,Europeancompaniesgetincreasedemissionallowancesathomecarboncreditsby
mountinggreencleanupprojectselsewhere.SobuyinganoldSovietfactoryandconvertingittogreen
technologycanbringmultiplepaybacks.
Theinvestmentismuchmoreattractivethanitusedtobe,saidLennarddeKlerk,directorofGlobal
Carbon,aBudapestfirmthatbrokerssuchcarboninvestmentsinUkraine,RussiaandBulgaria.Factorthe
valueofthecarboncreditsintothecostofrefittingafactoryinUkraine,andthepredictedrateofreturn
risestoalmost12percentfrom8.8percent,hesaid.
Oncetheoutmodedplantsarerefittedwithcleantechnology,theiremissionforeachtonofcement
produceddeclines.ThePodilskyplantinUkraineisbeingrefittedwithgreenerkilnsaprojectfinanced
bytheIrishcementmanufacturerCRHandenergyconsumptionforeachtonofcementproducedis
expectedtodropby53percent.
Buteventhatsharpdropmaynotbeenoughtostoptheinexorablegrowthincementemissionsoverall,or
compensateforthenewleaseonlifethatrefittingprovidesoldfactoriesthatotherwisemighthaveshut
theirdoors.
AttheDoncementplantofHeidelbergCementinUkraine,outputsoared55percentinthefirstninemonths
of2006.Totalproductionwentupmorethan10percentinUkrainein2005andagainin2006.
OneindustryprojectcalledtheCementSustainabilityInitiativesuggeststhatconcreteshouldbemixed
usingsmallerportionsofcementtoreduceemissions.Butthereislessincentiveformanufacturerstomake
fundamentalchangesinhowbuildingsandroadsaremade.
Mr.Allwoodsuggestedthatonesolutionmightbetomakeconcreteinblockslikelargesugarcubesthat
couldbestackedtomakebuildingsandreusediftheyaredemolished.
WesterncementmanufacturersemphasizethattheemissionsproblemcannotbesolveduntilChinaand
Indiaandotherboomingeconomiesrealizethattheymustlimitemissionsaswell.
TryingtosolveemissionsintheE.U.orG8willnotsolvetheproblemunlessemergingeconomiesand
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theircementproductionareincluded,Mr.Luneausaid.
Correction:October29,2007
ApicturecreditwasomittedinBusinessDayonFridaywithanarticleabouttheheavypollutionofChinas
cementindustry.ThephotographofworkersunloadingcementbagsatadockineasternChinawasby
JiananYuofReuters.
Copyright2007TheNewYorkTimesCompany
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