Cement sector guidance – Science Based Targets

Cement

We’re developing science-based target setting methodologies, tools and guidance for cement companies and other stakeholders. Our aim is to help companies to understand and implement the level of climate ambition required to meet the 1.5ºC goal of the Paris Agreement.

Why take action?

The cement sector is the third-largest industrial energy consumer and the second-largest industrial CO2 emitter. It represents about 7% of CO2 emissions globally.

Cement demand is projected to continue rising. If action is not taken to optimize its use in buildings and construction, we will see an increase in demand by approximately 20% by 2050.

Applying best practice in the cement industry

In 2015, the Science Based Targets initiative (SBTi) developed the Sectoral Decarbonisation Approach (SDA). It is a scientifically-informed method for companies to set greenhouse gas reduction targets necessary to stay within a 2°C temperature rise above pre-industrial levels. This led to the development of a 2ºC and a well-below 2ºC pathway.

However, the Paris Agreement and the recent IPCC 6th Assessment Report highlighted the need to keep warming within a 1.5ºC temperature rise.

Our new methodologies, tools and guidance will build on the previously developed SDA methodology for cement to develop 1.5ºC-aligned resources. They will enable companies to set targets that align with science-based decarbonization pathways within the unique context of their sector.

By setting emission reduction targets in line with this goal and defining appropriate decarbonization strategies, cement companies can help rapidly accelerate the transformation to a net-zero economy and prevent the worst effects of climate change.

Project participants

SBTi is the project lead and convener. Participation in this project is possible via the following groups:

Expert Advisory Group (EAG): Composed of technical experts from stakeholder organizations and companies interested in setting an SBT and contributing to the project execution. Invitations for participation in the EAG consider the need for a balance of stakeholder categories, geographical diversity and gender balance. The EAG consists of the following:

• Votorantim Cimentos

• Global Cement & Concrete Association (GCCA)

• Cemex

• Holcim Ltd.

• VDZ/ECRA

• CRH

• HeidelbergCement

• Bellona

• WWF

• Siam Cement Public Company Limited (SCG)

• Cementos Argos

• European Climate Foundation

• Institute for European Environmental Policy (IEEP)

• Potsdam Institute for Climate Impact Research

• UltraTech Cement Limited

• Grupo Cementos Chihuahua

• Dangote

General stakeholder consultation: Both industry and non-industry representatives will be able to provide feedback on the project through webinars and written consultation. SBTi will ensure a balanced participation of stakeholder categories.

Initial funding for this project has been provided by Holcim Ltd.

Development process and timeline

The project will build on the previously developed SDA methodology for cement to develop 1.5ºC-aligned resources, delivering the following guidelines and tools:

1. Integration of new pathways in SBTi’s target setting tool to help cement companies model GHG emission-reduction targets consistent with the ambition required to limit warming to 1.5ºC;
2. Guidance for setting 1.5ºC-aligned science-based GHG emission reduction targets for the production of cement;
3. Incorporation of 1.5ºC-aligned sector-specific benchmarks into the SBTi Target Validation Protocol to enable third-party validation of 1.5ºC-aligned targets for cement production.