The World Economic Forum’s Net-Zero Industry Tracker 2022 is released
The World Economic Forum (WEF) has released its first Net-Zero Industry Tracker 2022 report. It indicates that cement demand is expected to increase by 46% by 2050 and suggests that $185 billion will need to be invested in CO2 clean hydrogen handling and production infrastructure to enable low-emission cement plants.
To meet the 2030 emissions intensity target, the WEF estimates that the cement sector must reduce its carbon emissions by 24% from the current level. In addition, it will need to reduce its carbon emissions by 95% to reach net zero in 2050. The adoption of carbon capture, use and storage (CCUS) by the cement sector is expected to lead to increased costs production by 50-85%, with commercial installations commencing by 2030. Industry will need $500 billion to implement CCUS technologies by 2050, or $16 billion per year in addition to usual commercial investments. Access to green bonds through an adequate taxonomy and significant public financial support should be necessary.
The carbon storage infrastructure will have to manage 1370 Mta of CO2, according to the WEF report. Low-emission cement is expected to come to market with a green premium of over 50%, which should lead to a 1-3% increase in house prices.
Around 60 to 110 USD/tCO2Carbon pricing is necessary to level the competitive landscape, suggests the WEF.
Five priorities are highlighted for the cement sector by the WEF report:
1. Implement efficiency levers to maximize the reduction of emissions in existing processes and promote the recycling of concrete
2. Increase the number of carbon capture projects to accelerate the learning curve, reduce costs and advance technology commercial readiness
3. Develop CO2 transport and storage infrastructure for the production of low-emission cement
4. Multiply demand signals for low-emission cement to incentivize producers and investors to direct capital to low-emission assets
5. Develop policies to support the above four priorities and strengthen the business case for low-emission cement production.
The entire WEF 2022 Net-Zero CO2 Industry Tracking Report.
Published under Cement News
