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CEMBUREAU Statement on EU Green Deal Industrial Plan

Thursday, April 27, 2023

CEMBUREAU, the European Cement Association welcomes the objectives of the Green Deal Industrial Plan issued in February by the European Commission. The EU needs a strong response to the US Inflation Reduction Act (IRA), that allows to maintain the EU’s industrial leadership and deploy green technologies as soon as possible.

CEMBUREAU strongly believes that:  

o An explicit focus should be put on Energy-Intensive Industries, which are strategic and essential upstream actors in critical supply chains that bring low carbon products to market. For instance, cement is a critical material for the deployment of renewable energy, public transport infrastructure and sustainable buildings.

o A strong financing plan for clean-tech production is set up via a revision of the state aid legislative framework, new financing tools such as Carbon Contracts for Difference (CCFDs) and a simplification of broader EU funding mechanisms (such as the creation of a ‘one stop shop’ to coordinate funding sources). The strategy should take inspiration from the IRA in terms of dedicated tax rebates for green technology deployment and incentives. 

The focus put on infrastructure for decarbonisation is critical. Besides hydrogen, the Green Deal Industrial Plan should also foster the deployment of CO2 transport and storage infrastructure, based on open and fair access conditions, which is vital to deploy breakthrough technologies such as Carbon Capture, Utilisation and Storage (CCUS).

The decarbonisation of energy-intensive sectors like cement will also require considerable amounts of renewable energy. It is critical that the upcoming market design reform provides price stability and predictability. Faster permitting procedures and a stronger focus on the deployment of renewables on industrial site are also essential.

CEMBUREAU, the European Cement Association, issued its Carbon Neutrality Roadmap in May 2020. A large number of projects are currently being deployed by the cement sector to reduce CO2 emissions.