The Cement Sustainability Initiative (CSI) Sectoral Approaches to Greenhouse Gas Reductions

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The Cement Sustainability Initiative (CSI)Sectoral Approaches to Greenhouse Gas

Reductions

Howard Klee, WBCSDBali December 2007


Ash Grove Cement (USA) CEMEX (Mexico) Cementos Molins (Spain) Cementos Portland Valderrivas (Spain) Cimentos Liz (Brazil) Cimpor (Portugal) CRH (Ireland) Grasim Cement (India) HeidelbergCement (Germany) Holcim (Switzerland) Italcementi (Italy) Lafarge (France) SCG (Thailand) SECIL (Portugal) Shree Cement (India) Taiheiyo (Japan) Titan (Greece) Votorantim (Brazil)

CSI Participants (with headquarters country)

Collectively, participants have operations in more than 100 countries

•Initiative operating since 2000•Addressing a range of sustainability issues incl.

•Climate protection, safety, land impacts, fuels•Currently 18 members•700 facilities•Broad geographic reach:

•60% of global production outside China•28% global production, but majority of production in EU, NA, LA, India. Poorly represented in Asia

•450 mil tonnes CO2 emissions in 2005


Climate Protection – a critical business issue

• Building and testing a Sectoral Approach as potential policy option post 2012: but basic steps first.

• Building tools for consistent data collection – Common CSI CO2 Protocol, field tested, reviewed and revised

• Building global database of facility emissions• Independent 3d party verification beginning 2006• Capacity building on use of the tools, esp. in China and India• Development of new Sectoral Benchmarking CDM methodology

Joint Activities

Reinforced with individual company activities


Data Collection1. Primary concerns: anti-trust, confidentiality, accuracy

– No one sees competitively sensitive information– Need independent 3d party to own and manage database – Companies sign individual contracts with 3d party

2. Maximize participation by others to have the most data

3. Minimize bureaucracy and time delays for CSI members– Basic terms of individual contracts set out– Fixed confidentiality agreement and code of conduct for all

participants– CSI agreement includes total damages cap for project so that this

is not negotiated individually

Legal ArrangementsEach participating company orOrganization signs with PwCWBCSD-CSI

signs with PwC

Project Agreement

•Confidentiality

•Code of Conduct

•Project Charter

•Basic Provisions

•PwC Employees

Technical Description including:

•IT structure

•Data entry process

•Legal matters

Project ManualInfo given to all

WBCSD-CSI

Individual Service Agreement

•Confidentiality Agreement

•Code of Conduct

•Project Charter

Cap on Damages


Data Quality Management•Validity checks

•Business sensibility checks

•Request for company verification of suspect values

•Confidential review by external expert (~20 of

24500 data elements)

•Independent 3d party verification from 2006

CSI CO2 emissions: Stable in Annex-1 and 4+% annual growth in non-Annex-1

1990 – 2005 CO2 emissions growth

Gross Net

Annex-1 ~ 0% - 0,3%

Non-Annex-1 + 4,6 + 4,5

Absolute CO2 emissions

Specific CO2 emissionsEfficiency is improving and specific emissions are falling, but absoluteemissions are rising with market demand in developing economies.


Technology Distribution – CSI Companies

Biomass use – CSI companiesIncreasing, but more could be done


Next Steps• Expansion to other organizations – European

Trade organization has joined• Next round of data collection, 2008

– Regional differentiation– Indication of external verification

• Scenario analyses – what if?• Use in benchmark calculations for possible

future use in new CDM methodology, sectoral approach pilot project

The Cement Sustainability Initiative (CSI) Sectoral Approaches to Greenhouse Gas Reductions

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