The Carbon Border Adjustment Mechanism (CBAM) and the reformed EU Emissions Trading System (EU ETS) are expected to have a significant impact on the cement sector and trades in the coming years.
The CBAM is a new EU policy that will impose a carbon price on imports of certain goods, including cement, from countries with less stringent carbon pricing policies. The CBAM is designed to level the playing field for EU producers, who are subject to the EU ETS, and to reduce the risk of carbon leakage. The CBAM is expected to have a number of impacts on the cement sector. First, it is likely to increase the cost of imported cement, which could lead to higher prices for consumers. Second, it could encourage domestic cement producers to invest in lower-carbon technologies. Third, it could lead to a shift in trade patterns, with EU importers sourcing more cement from countries with similar carbon pricing policies.
The EU ETS is a cap-and-trade system that puts a limit on the total amount of greenhouse gases that can be emitted by certain industries, including the cement industry. The EU ETS has been reformed to make it more stringent, with the cap on emissions being reduced by 62% by 2030. The reformed EU ETS is expected to have a number of impacts on the cement sector. First, it is likely to increase the cost of producing cement, as companies will need to purchase more carbon allowances. Second, it could encourage companies to invest in lower-carbon technologies. Third, it could lead to a reduction in cement production, as companies may choose to produce less cement to avoid having to purchase additional carbon allowances. As well as, the introduction of Shipping in EU ETS from 2024 will affect the cement market and its trades both in import and in export.
The CBAM and EU ETS are expected to have a significant impact on cement trades in the coming years. They are likely to make imported cement more expensive, which could lead to a decrease in imports. Meanwhile they could also lead to a decrease in cement production, which could further reduce exports.
Overall, the CBAM and EU ETS are expected to make the cement sector more carbon-efficient, but they could also lead to higher prices for consumers and a decrease in trade. It may be possible to see huge changes in trades; EU importers may switch to sourcing cement from countries with similar carbon pricing policies, such as Switzerland and Norway and at the same time, EU exports of cement to countries with less stringent carbon pricing policies may decrease. EU cement producers may invest in lower-carbon technologies to reduce their costs and remain competitive; as like as the rise of LC3. It is a new blending which substitutes the amount of clinker with calcined clay and limestone. By reducing the clinker-content with so called Supplementary Cementitious Materials (SCMs), large CO2-savings can be achieved. LC3 can reduce half of the clinker content and consequently cut up to 40% of the CO2-emissions. Furthermore, it uses industrial waste materials which thereby increase the resource efficiency and reduce the utilization of the scarce raw materials that are necessary for producing clinker. Certainly, cement producers and traders should carefully monitor the CBAM and EU ETS reform to understand the potential impact on their businesses.
Shipping Market EU Regulations Maritimetransport Cement CBAM ETS SlothSea
