REPORT 2014
cembureau
The European Cement Association based in Brussels is the representative organisation
of the cement industry in Europe. Currently, its Full Members are the national cement
industry associations and cement companies of the European Union (EU, with the
exception of Cyprus, Malta and Slovakia) plus Norway, Switzerland and Turkey. Croatia
and Serbia are Associate Members of CEMBUREAU.
The Association acts as spokesman for the cement industry before the EU institutions
and other public authorities, and communicates the industrys views on all issues and
policy developments with regard to technical, environmental, energy and sustainability
issues. Permanent dialogue is maintained with EU institutions, international authorities
and other international associations.
Serviced by a multi-national staff in Brussels and with the input from its Members via
four Working Groups as well as a number of Task Forces set up on an ad hoc basis
and directly reporting to the appropriate Working Group, CEMBUREAU takes action in
relation to all developments at European level affecting the cement industry.
Association
Europenne
du Ciment
The European
Cement
Association
TABLE OF CONTENTS
10 The Economy
The World
Europe
34 Energy
CemProspects
The Energy Market 2014
36 Events
38 About CEMBUREAU
42 Abbreviations glossary
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1
2014/746/EU: Commission Decision of 27 October 2014 determining, pursuant to Directive 2003/87/EC of the European Parliament and
of the Council, a list of sectors and subsectors which are deemed to be exposed to a significant risk of carbon leakage, for the period
2015 to 2019
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safety, cement companies have a proven track Cement in the 2050 Low Carbon Economy", the
record of sharing best practices, raising awareness aim is to take this up to 60% by 2050. This would
with the workforce through targeted information lead to a 27% reduction in fuel CO2 emissions. In
campaigns, designing interactive compliance tools addition, in 2012 the industry saved 6Mt of raw
and all of that in a spirit of good cooperation with materials by using alternative raw materials.
the trade unions.
Further downstream, the end product of our
Starting from the principle of responsible care for industry, concrete, is fully recyclable either into
its workers and for society at large, the cement new concrete or in other applications such as road
industry will help governments to address the base. The cement and concrete sector are ready
challenges society faces. These challenges to assess with governments how our business
have been laid out in several policy documents models can foster an increased recycling rate
published over the year. of construction and demolition waste and how
local building codes can be revised to encourage
increased levels of recycled content. The sector
will also be fully supportive of a landfill ban for
recoverable and recyclable waste as this will
allow continued access to materials that allow the
cement industry to continue playing its essential
role in the circular economy.
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A competitive, full supply chain All these developments are taking place against an
economic background that remains challenging.
oriented policy framework The cement and concrete industry is ready to
play its part in renovating and rebuilding Europes
Bringing about a circular economy requires that
houses, buildings and infrastructure and this in line
all operators in the supply chain are aligned
with its long-term standards of high performance.
on the same goals. Regulatory initiatives on
The industry needs a solid basis, however,
resource efficiency and on the circular economy
which means a predictable set of consistent
cannot be considered separately from an overall
and coordinated rules that take into account the
climate & energy policy. Indeed, concrete can
full supply chain. Our industry is also turning to
contribute to improving energy efficiency and
policymakers to ensure that Europe strikes a
lowering emissions and it can be fully recycled
workable balance between the justified need to
at the end of its life. An optimal result will only be
ensure a strong environmental performance of our
achieved, however, when the circular economy
companies while ensuring they can continue to
considerations are taken up at the design stage
compete on a global level playing field.
of a building and are part of a whole life-cycle
approach to buildings.
CEMBUREAU will constructively engage in
building this policy framework and looks forward
Likewise, the debate on CO2 emissions and, more
to discussing its reflections on the energy and
broadly, climate change legislation, should not
climate policy, including a reform of EU ETS, for
stop at the factory gate. Legislation that focuses
the period after 2020.
on only one part of the supply chain and ignores
the environmental benefits of the products at the
Personally, I feel privileged to work with a team
end of the full supply chain, results in misguided
and members that are all strongly dedicated to
policies and missed opportunities to promote the
promote the unique strengths of our industry to
strong contribution of energy-intensive industries
policymakers. Thank you all for the constructive
to the welfare of Europes citizens. Whilst it is a
comments, for keeping up a high level of expertise,
fact that the embodied energy represents only
attendance and interest in our meetings, for the
5-10% of the total energy use over the life cycle
continuous reflection and out-of the box thinking
of a building, we cannot ignore that cement-
and for the strong personal relationships: all of
related CO2 emissions do account for around 5%
these turn a job into a passion!
of global emissions. Here as well, our industry
is ready to take responsibility. Over the past 60
years, we have succeeded in achieving a 44%
reduction in CO2/m3 concrete. The Roadmap "The
role of Cement in the 2050 Low Carbon Economy"
does not only highlight industrys technological
advances over the past 20 years that have all
contributed to improved sustainability of our
businesses in terms of energy-efficiency and
reduction of emissions, it also demonstrates that
innovation is at the core of the cement industrys
activities. Innovation initiatives range from a
constant search to improve our knowledge on the
use of alternative raw materials to research into
innovative low-clinker cements and concrete to
continuous improvements of thermal efficiency in
our plants. As a member of the Technical Advisory
Board of the European Cement Research
Academy (ECRA), CEMBUREAU has been
strongly involved in research and pilot testing on
carbon capture projects for the cement industry
whereby reuse is investigated as an interesting
promising avenue.
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the event of a fire, how much time people which acknowledge and leverage the unique
have to evacuate a building, and the toxicity contribution our sector and its highly versatile
of the gases. Overall, they are looking for product for Europes future, safe, low carbon built
fire safety legislation to ensure that modern environment. Following the launch in 2014, 2015
construction methods and materials do not is the year where we aim to create compelling
impinge on the fire safety of buildings. fact-based cases for regulators and stakeholders
Concrete scores very well in this regard! which can ultimately see life cycle analysis, thermal
inertia, fire safety parameters etc embedded in
Reducing Emissions in Europe: in regulations, norms, codes and labels, all with
Europe, buildings consume around 40% the aim to level the playing field for the choice by
of energy (and account for 36% of CO2). specifiers of construction materials. The possible
The energy consumption of a conventional climate agreement at the end of 2015 in Paris
building is typically 150-200kWh/m2/year. could also further position concrete as a major
Todays concrete allows a 75% reduction solution to energy efficiency challenges in EU.
of that energy consumption thanks to
its thermal mass. When the air is warm, This flagship initiative has taken off successfully
concrete absorbs heat and lowers room thanks to the innovative thinking and leadership
temperatures and when temperatures of Working Group D and the project team led by
fall, concrete releases heat. This natural Cdric De Meeus and Denis Berthon, in close
air conditioning effect, when linked with cooperation with the CEMBUREAU Secretariat
intelligent concrete building design enables and more specifically Jessica Johnson and Karl
buildings to be constructed that consume Downey.
50kWh/m2/year or less. The potential
for transforming Europes energy bill is I also wish to express my warmest thanks for the
immense. unrelenting efforts and efficiency of the whole
CEMBUREAU staff in identifying and analysing
Renovation and rebuild: 35% to 42% of policy initiatives of relevance to our sector and in
Europes enormous building stock (25 bn shaping the CEMBUREAU messages with a strong
m2 for 510 MM people) dates back to the dedication and attention to detail. Finally, kudos is
pre-1960s and is only gradually (1%/year) also due to all members of the Working Groups
being replaced by more energy efficient and Task Forces in CEMBUREAU, who combine
buildings. For every 20 newly erected their day jobs with enthusiastic and generous
buildings only one is demolished. As a engagement in the Associations work. Finally, a
result, energy consumption improvements word of thanks to you to all for positioning cement
as referred to above, are progressing at a and concrete as the backbone for Europes future!
snails pace. The concrete sector is ready
to contribute to a more energy efficient
housing environment through a two-prong
approach whereby houses are rebuilt
with strong gains in multi-functionality
and, at the same time, existing buildings
are renovated through the application of
innovative techniques such as concrete
panels retrofitted to the exterior of buildings
with a sandwich of insulation, achieving the
same energy efficiency performance in a
cost effective way.
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THE ECONOMY
Source for all charts: CEMBUREAU
The World
World Production and World Trends
1
Source: Energy Internal Administration (www.eia.gov). The spot price of Brent Europe has been used as reference
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with emerging economies continuing to clearly global cement production, compared to 58.3% in
outperform advanced economies. Domestic 2013. Without taking into account China, global
demand in emerging economies slowed down and cement production increased year-on-year by
partly offset the subdued demand in advanced +11.3%, gaining some speed compared to 2013
economies, where exports (particularly for EU (+9.3%). As in previous years, cement production
economies) continued to provide the strongest volumes in the G20 emerging economies clearly
contribution to GDP growth. In 2014, the US outperformed those of mature economies. In
economy recorded its fourth consecutive year aggregate terms, emerging countries recorded
of growth and gained momentum as real GDP a +13.7% growth year-on-year, compared to an
increased by +2.4% (+2.2% in 2013), continuing increase of +2.1% in G20 countries. According
to outperform the EU which experienced a to provisional figures, the highest growth rates
moderate economic growth of +1.3% compared were recorded in the Russian Federation and
to the stagnation recorded in 2013. In the EU, India, whilst cement production experienced a
the negative economic cycle bottomed out in Q3 recession in Argentina and South Africa. Amongst
and Q4, resulting in an end to the recession for the G20 countries, the recovery in cement
many EU Member States. This paves the way for production was widespread across all countries,
expectations of growth gaining momentum in 2015, resulting in outstanding annual performances in
despite widening gaps in economic performance the UK, Canada and the US (with increases of
between EU Member States, with unemployment +8.2%, +5.8% and +4.9% respectively). The only
rates still at record highs. The economic outlook exception was South Korea, which recorded a
in the EU is expected to improve substantially decrease of -0.4%. European members of the G20
during 2015 as a result of the aforementioned recorded mixed performances, just as they did in
unprecedented action carried out by the ECB, and 2013.
the combination of the fall in oil prices, interest
rates at record lows and EUR depreciation. In Production continued to increase in 2014
Japan, the recovery lost ground as real GDP rose compared to the previous year in South America,
by +0.4% (+1.6% in 2013). 2014 global output Africa and Asia. These regions were responsible
expanded by +3.3% (just as it did in 2013) whilst for 4.4%, 4.8% and 80.4% of world cement
in developing countries the real GDP growth rate production, respectively. The CEMBUREAU
attained +4.4, which is less vibrant than the +4.7% Member countries accounted for 5.5% of global
increase recorded in 2013. In 2014, economic production (5.8% in 2013) whilst the proportion
growth in advanced economies accelerated, as it of global production in the EU Member States
rose from the +1.3% recorded in 2013% to +1.8% remained the same as in 2013, i.e. 3.7%.
in 2014.
2
In detail: 4,312 million tonnes in 2014 vs. 4,043 in 2013
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350
Af rica America Asia
300
250
200
150
100
50
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
USA, 1.9
Af rica, 4.8
India, 7.0
Japan, 1.4
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Europe
Compared to 2013, and according to the latest marking the end of the three-year recession that
data available, 2014 cement production in the culminated in annual drops of some -11% and
CEMBUREAU Member countries recorded a very -7.6% in 2012 and 2013. However, the cumulative
moderate recovery, rising by +0.3% in annual peak-to-trough fall since 2007 (the year prior to the
terms after the drops recorded in 2013 and 2012 onset of the economic crisis) in cement production
(-1.4% and -8.2% respectively), reaching 235.5 for the EU28 is -50.5%.
million tonnes (Mt). Individual European markets
recorded mixed performance. Spain recorded Total 2014 clinker and cement exports from the
positive growth in cement production (+5.5%) after CEMBUREAU Member countries fell by -2.6%
the harsh recession experienced in previous years. on a yearly basis, down to approximately 46Mt,
On the other hand, Italy continued to experience further to the moderate drop of -1% recorded in
a sharp recession in cement production (-7.4% 2013. Contrary to previous years, the year-on-
further to -12% in 2013), as did France (-6% year change in imports was positive, i.e. by +1.3%,
further to -3% in 2013). Germany experienced a reaching 18Mt. In 2014, clinker represented
recovery after the temporary year-on-year drop 27.4% and 13.1% of total export and import flows,
3
in 2013 (+1.8% further to -3% in 2013) , Cement respectively.
production improved in several Eastern European
countries, with bullish performances in terms 2014 developments in cement demand were
of year-on-year growth in the Czech Republic, in line with the upturn in the general economic
Latvia, Poland and Slovenia in particular. Bulgaria and construction environment, particularly over
was the only exception to this positive picture as the second half of the year, reflecting somewhat
cement production decreased by -6.2%. In the improved economic sentiment, despite tight
EU28 as a whole, cement production increased by financial conditions in many Member States and
+1.2% year-on-year, i.e. from 157.5Mt to 159.4Mt, weak domestic demand. Cement consumption
3
Please note that the cement production figure for Germany in 2014 is an estimate
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350
CEMBUREAU
EU28
300
250
200
150
100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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doubled and office rents in large cities increased in its development since the start of the global
by over +8%, which showed a stable trend economic crisis. A further increase is expected
towards an increase in demand and construction in 2015, implying a corresponding increase
activity in the sector. Positive developments were in new construction and, therefore, in cement
recorded for public infrastructure projects (mainly consumption.
highways and road construction), triggered by the
relatively high rates of absorption of EU structural
funds as they approach the end of the European Croatia
Commissions 2007-2013 Regional Development
Operational Programme disbursement period. Overview: In 2014, cement consumption slightly
increased by +0.8% compared to 2013.
Future trends: There are certain grounds for
positive expectations in terms of 2015 cement Future trends: The overall economic situation did
consumption. However, given the impact of the not improve during 2014 resulting in another year
negative trends which have been recorded over of recession (-0.5%). However, a positive GDP
the last 4-5 months, a more moderate growth is growth rate is expected in 2015. The construction
forecast. The market is expected to be influenced sector is expected to record the same performance
by two main factors: an increase in construction as in 2014.
in the private building sector and the greater
priority which is being afforded by the new
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Overview: In 2014, cement production in the Overview: In 2014, construction and building
Czech Republic reached 3,691Mt (+10%) year- activity was slightly better than in 2013. This was
on-year, and cement consumption 3,527Mt (+5%). to some extent positively affected by continued
In 2014, construction output increased by +2.3% publicly funded growth initiatives, especially
year-on-year in real terms. Building construction in relation to infrastructure, hospitals and
volumes remained around the level of 2013, year- universities. A moderately positive trend was seen
on-year, and civil engineering construction volumes for residential housing activity and the commercial
increased by +7.5% (contribution of +2.3%), year- building sector, rising from a historic low point.
on-year. Compared to 2008, which was a very
positive year for construction, 2014 construction Future trends: 2015 volumes are expected to
output dropped by -22.1%. In 2014, the number improve slightly compared to 2014. Public-sector
of orders received by construction companies with growth activities, the continued effects of other
50+ employees increased by +9.7%, year-on-year. political initiatives to boost the sector, low oil prices
These companies received and concluded 45,714 and Danish kroner exchange rates will have a
orders in the Czech Republic. The total value of positive effect on volumes. The residential building
the orders grew by +23.3%. Building construction segment is expected to continue the mild positive
orders grew by +2%. For civil engineering, orders trend in 2015. The commercial building segment is
grew by +40.6%. In 2014, the average value of expected to remain at the historically low levels of
a newly concluded building order was +12.4% recent years.
higher, year-on-year.
Exports
50
Imports
40
30
20
10
0
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Note: Exports and imports including intra-trade flows between CEMBUREAU countries
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4
According to most economic literature, public spending tends to increase substantially during so-called "electoral cycles" that is the
period of one or two years preceding political elections. This is particularly relevant for France where public expenditure decisions are
mostly made at the local level (i.e. Departments)
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forecast from the residential construction sector construction of buildings grew by +4.2% owing
due to a sustained high demand, especially in to the construction of industrial, medical and
agglomerated areas. Further beneficial impacts educational buildings. Residential construction
are expected from civil engineering. During has also risen. Approximately +15% more new
previous years, a comprehensive backlog in homes were built in 2014 compared to the previous
German transport infrastructure was accumulated year. Output from the civil engineering sector
and is now expected to be handled by the public rose by +24.8% due to works in the development
sector. In contrast, the recent development of of transport infrastructure. The volume of new
building permits in the commercial construction contracts was -17.3% lower in 2014 compared to
sector remains below expectations. the previous year.
Civil
engineering
R&M, 8.6
Residential-
Non-residential R&M, 27.8
R&M, 15.9
New non-
residential,
* Euroconstruct19 Countries 16.7
Source: Euroconstruct
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Future trends: Italian cement consumption Overview: Despite the slight growth in construction
forecast for 2015 assumes a decrease of between sector output (CSO), cement consumption in the
-2-0%. Netherlands decreased by around -2% in 2014.
This slight growth in construction sector output
related to commercial buildings for transport and
Latvia logistical services in particular. The lowest volume
of completed dwellings ever was recorded.
Overview: Cement consumption remained in line Non-residential buildings for offices and healthcare
with construction growth projections of +7.6% year- have decreased the value of CSO.
on-year. The construction industry breakdown by
sectors during first 3 quarters of 2014 is as follows: Future trends: Due to increased volume of
housing 14%, administrative buildings 22%, retail building permits for housing, the CSO for housing
areas 3%, production areas 7%, roads & bridges will grow in double-digit figures. The CSO in non-
23%, ports & dams 3%, communications & utilities residential and civil engineering will grow by some
11% and others 17%. percentage points. Cement consumption in the
Netherlands is expected to grow between +2-4%.
Future trends: The construction industry is
expected to contract by -0.5% in 2015 (according
to the Ministry of Finance). Norway
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Future trends: Growth in the cement sector Overall, in 2014 there was annual growth of around
is expected to be around +5% in 2015 due to +6% compared to 2013. However, the volume of
investments in housing within the scope of urban construction output fell by -2.8% in the last quarter
renewal, special projects such as a third airport, of 2014 compared to the previous 3 months.
a third bridge (Bay Bridge), infrastructure projects The decline was driven by repair & maintenance
such as a high-speed train, metro, highway, energy and new housing work. However, activity in the
investments such as HES/RES which aims to sector remains buoyant, with the latest PMIs for
decrease Turkeys energy dependence combined construction activity pointing to sustained growth
with the arrival of general elections. in the short to medium term.
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MEMBERS
ASSOCIATE MEMBERS
Sweden
Finland
Norway
Estonia
Latvia
Ireland Denmark
Lithuania
United
Kingdom Netherlands
Poland
Belgium Germany
Luxembourg Czech Rep.
Switzerland Austria
France Hungary
Slovenia Romania
Croatia
Portugal
Serbia
Spain Italy n/a Bulgaria
Turkey
Greece
: Increase : Decrease
n/a: Not available
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emissions reporting
gnr & beyond
Since 2007, CEMBUREAU has contributed to
the World Business Council for Sustainable
Development - Cement Sustainability Initiatives
(WBCDS-CSI) Getting the Numbers Right
(GNR) project, which aims at monitoring and
addressing CO2 emission trends from the cement
industry at global level. CEMBUREAU has actively
participated in the GNR data collection and
Project Management Committee ever since. The
GNR project is a CO2 and energy performance
information system, based on emission data
from individual cement installations. The system
gathers information on each factor or lever that
impacts CO2 emissions and energy efficiency,
300
Cement Production,
Production,EU28,
EU28, including the average thermal efficiency per tonne
mtonnes of clinker, and the substitution of conventional fuels
250 CO2 emissions,
Net CO2 emissions,EU28,
EU28, with alternative fuels and biomass. The information
mtonnes
contained within the system represents around
200 23% of global cement production (some 55%
without China). Separate reports for the EU28
and the CEMBUREAU region are also available,
150
including information from 304 installations,
representing approximately 95% of total EU
100
cement production.
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also contain dust, sulphur dioxide (SO2) and Some of key findings from the latest emissions
nitrogen oxides (NOx), amongst others. In 2014, report (2012 data) can be described as follows:
CEMBUREAU continued to collect emissions data
for other key elements emitted during the clinker NOx emissions continue to decrease.
burning process including dust, NOx and SO2. The
latest report includes emission values collected Compared to 2011, 8 additional plants
for 300 kilns from the CEMBUREAU member installed primary abatement measures
countries for 2012, compared to 275 the year across the CEMBUREAU region in 2012.
before.
Dust emissions are increasingly within the
Best Available Technique (BAT) Associated
Emission Level (AEL) ranges.
DUSTEmissions
DUST Emissions- -Continuous
Continuous- -2012
2012
100
90
80
70
60
mg/Nm
50
40
30
20
10
0
0 50 100 150 200 250
1000
800
600
400
200
0
0 50 100 150 200 250
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CEMBUREAU MAIN
ISSUES
In June 2014, a new European Parliament was
elected with a significant presence of Euro-sceptic
parties in the hemicycle. While the traditional
political groups still dominate the discussions, they
do need to take into account a constant challenge
from new players that occupy all parts of the
political spectrum and voice strong concerns by
citizens who suffer from austerity measures taken
by national governments. It is in this challenging
environment that a new European Commission
took office in November 2014. Commission
President Juncker pledged that his number one
priority will be getting Europe grow again and
getting people back to work.
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CEMBUREAU provided substantial facts and outliers in setting benchmarks and (iv) indirect
figures to demonstrate that the sector continues compensation to supplement direct emission
to fulfil the carbon leakage criteria, for both allowances.
cement and clinker. As a result, the European
Commission confirmed that the cement sector From a standardisation perspective, work
remained subject to a significant risk of carbon also continued under CEN TC 264 WG 33
leakage for the period 2014-2019; (Greenhouse gas [GHG] emissions in energy-
intensive industries). In 2014, the results from
1
The Commissions carbon leakage decision the tests undertaken at two cement plants in
provided the stability and legal certainty for order to determine the uncertainties of the
the period up to 2020 and thus allowed our methods were reviewed, and a draft standard
sector to pro-actively reflect and engage on an was prepared for the cement industry.
appropriate climate change legal framework
for the post-2020 period;
Energy costs in the cement industry represent
In response to the Commission publication of around 30 % of the total operating costs. In its
2
the post-2020 Climate and Energy package, Climate and Energy package of January 2014 ,
in January 2014, CEMBUREAU elaborated the European Commission acknowledged that
views on an improved EU-ETS but also there has been a decisive shift in the centre
assessed alternative mechanisms such as the of gravity of global energy demand towards
putting in place of a cross-border mechanism emerging economies, notably China and India. At
or a consumption charge; the same time, households and industrial users
Whatever the system chosen, CEMBUREAU are increasingly concerned by rising energy prices
called upon policymakers to take into account and price differentials with many of the Unions
the long-term planning and investment trading partners most notably the USA.
cycles of the cement industry which require
a predictable legal framework and a stable CEMBUREAU participated in the consultation
long-term carbon price to foster investments in process on the revised energy and environment
3
low carbon technologies; Guidelines . Throughout the consultation, the
Association emphasised the impact of high
If the EU-ETS were to continue as a market- energy process on the global competitiveness
based system, CEMBUREAU calls for (i) a of the industry;
performance based free allocation for direct
3
emissions whereby a multiplication of the Under the finally adopted new Guidelines , the
benchmark by a historic activity level (HAL) cement industry is now eligible for national aid
which is more closely aligned to recent for reduction or exemption from environmental
production could avoid surplus allocation; (ii) taxes and is mentioned in Annex III as eligible
an elimination of the cross-sectoral correction for aid in the form of reduction in funding
factor which avoids full free allocation for support for energy from renewables;
even the best performer; (iii) the elimination of
1
2014/746/EU: Commission Decision of 27 October 2014 determining, pursuant to Directive 2003/87/EC of the European Parliament and
of the Council, a list of sectors and subsectors which are deemed to be exposed to a significant risk of carbon leakage, for the period
2015 to 2019
2
A policy framework for climate and energy in the period from 2020 to 2030
3
Guidelines on State aid for environmental protection and energy 2014-2020
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ACTIVITY REPORT 2014
3
Guidelines on State aid for environmental protection and energy 2014-2020
4
Guidelines on certain State aid measures in the context of the greenhouse gas emission allowance trading scheme post 2012
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ACTIVITY REPORT 2014
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CEMBUREAU continued to monitor In response to the new Clean Air Policy package
developments regarding the revision of both the for Europe, adopted by the Commission in
Waste Treatment Best Available Techniques December 2013, CEMBUREAU called for a
(BAT) Reference Document (BREF) and the fair burden-sharing between sectors, including
Waste Incineration BREF. Regarding the road transport and agriculture, when setting
Waste Treatment BREF, the work was primarily new air quality objectives for the period up
undertaken by the European Association for to 2030. The Association also reminded
co-processing (Eucopro). In 2014, a data policymakers to ensure consistency with
collection was launched by the European existing industrial emissions legislation and
Integrated Pollution Prevention and Control to avoid stricter national emission ceilings
Bureau (EIPPCB) to gather information from for a series of pollutants, including SO2 and
waste treatment plants regarding techniques NOX, that would go beyond what is technically
and key environmental issues. For the Waste feasible.
Incineration BREF, CEMBUREAU submitted
comments to the proposals raised by the
EIPPCB for the revised BREF.
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ACTIVITY REPORT 2014
Mercury is present in the raw materials ecosystems. At EU level, the focus remained
and in the fuel released in the cement on trying to identify ways of achieving a no net
combustion process. CEMBUREAU has loss of biodiversity. Against this background
been strongly involved in the UNEP Global a public consultation was launched to which
Mercury Partnership Advisory Group that CEMBUREAU responded, outlining the
focuses on how to protect human health and importance of ensuring that all sectors which
the global environment from the release of have an impact on biodiversity and ecosystems,
mercury and its compounds. The Minamata such as agriculture and forestry, are covered
Convention has now obtained 128 signatories by any such initiative. CEMBUREAU also
and 12 ratifications since its adoption and strengthened its collaboration with key
UNEP confirmed that it would be allocating stakeholders, including International Union for
US$141 million over the next four years for the Conservation of Nature (IUCN) and Birdlife
implementation of the Convention, along with International. In this respect, the Association
the private sector. CEMBUREAU, on behalf was delighted to support the IUCN guide for
of the Cement Sustainability Initiative (CSI), managing biodiversity in cement & aggregates
had the opportunity of presenting to the UNEP sector launched during the summer.
Global Mercury Partnership Advisory Group
the work of the Cement Partnership to date.
5
Moving towards a Circular Economy (July 2014)
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ACTIVITY REPORT 2014
Based on the strong expertise in the SDA be classified, labelled and packaged under the
with a preventive approach to RCS exposure, Classification, Labelling and Packaging8 (CLP)
CEMBUREAU has closely followed the of substances and mixtures Regulation as of
European Commissions initiative to issue 1 June 2015.
legislation on RCS and bring it under the
Carcinogens and Mutagens Directive6 (CMD),
in spite of the fact that it is not classified as a For several years now, the cement
carcinogen. If legislation were to be adopted industry has been proactive in preventing
on RCS, the Chemical Agents at Work worker exposure to Respirable Crystalline
Directive7 (CAD) might be a more appropriate Silica (RCS). This work is now being
tool, be it that any attempt to legislate ignores used as part of the discussions around
the good functioning of the SDA. At this point the potential inclusion of RCS under the
in time, all policy options seem to be open, Carcinogens and Mutagens Directive.
including a merge of both Directives and no Several options remain on the table and
new legislation. CEMBUREAU will continue CEMBUREAU will continue to play an
monitoring these developments. active part in the debate, emphasising that
a voluntary approach can lead to tangible
A Comprehensive Health Risk Study (CHRS) and positive results for social partners.
was launched by CEMBUREAU in 2005 with
the aim of identifying any potential health Martin Schneider & Stefano Gardi
concerns around the exposure of cement Working Group Health & Safety co-chairs
6
Directive 2004/37/EC of the European Parliament and of the Council of 29 April 2004 on the protection of workers from the risks related
to exposure to carcinogens or mutagens at work
7
Council Directive 98/24/EC of 7 April 1998 on the protection of the health and safety of workers from the risks related to chemical agents
at work
8
Regulation (EC) No 1272/2008 of the European Parliament and of the Council of 16 December 2008 on classification, labelling and
packaging of substances and mixtures
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ACTIVITY REPORT 2014
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ACTIVITY REPORT 2014
A B C D
Climate Change Resources Health Markets
& Energy & Processes & Safety & Products
TASK FORCES TASK FORCES TASK FORCES TASK FORCES
The Main Issues section covers just the key areas of CEMBUREAUs work in 2014.
The Association continued to work on many other issues throughout the year.
It should also be noted that the Members and company representatives active with the
CEMBUREAU Working Groups play an invaluable role in ensuring the success of the
Association and the best possible outcome, and it is to them that we extend our thanks.
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ACTIVITY REPORT 2014
ENERGY
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ACTIVITY REPORT 2014
than to lay up vessels, hot lay up or cold lay up, than previously predicted. Petcoke demand in
which in any case decreases the operating fleet. the Atlantic will remain unchanged at best, with
The main prediction suggests that freights will test Europe sluggish. Petcoke consumption is likely to
the 650 BDI level but not break it. Furthermore, Q1 fall by 2-3%, a function of an increase in the use
is historically a very weak quarter. of alternative fuels and lower construction activity
in general. The outlook for Turkey is mitigated for
Natural gas prices have declined from US$19 2015. The main locomotive for the petcoke trade
C&F Asia per million Btu to US$10-11 C&F. The is India. The low freight rate of down to US$26
low prices will have a negative impact on demand from US Gulf to India, from above US$43+ at the
for other energy forms, including steam coal and highs of the year, has offered the main support for
petcoke. C&F prices Asia for US LNG are close the petcoke market. Although FOB petcoke prices
to current domestic prices for natural gas, which have declined from a high of US$65 US Gulf in
reduces US export volumes and thereby presses Q2 of 2014 (for high sulphur petcoke to around
down US demand for steam coal. Although natural US$52 end of Q4), they have been much more
gas is not a real competitor against petcoke, it is resilient compared to other energy forms. Current
indirectly, due to its interaction with steam coal. petcoke prices are very high compared to all other
Lower international coal prices directly affect energy commodities, such as crude oil, LNG and
petcoke prices. steam coal. Historically, whenever crude oil and
coal have been priced at current prices, petcoke
Coal prices saw a temporary low at US$55 FOB prices FOB US Gulf have been below US$35. Mid
per 6 000 kcal/kg in beginning of January 2015, sulphur petcoke from Venezuela has fallen back to
but the steam coal market has recovered so far US$60-65, down from US$75-77 FOB at the peaks
everything indicates that the rally is a dead cat from the end of Q2. This is partly due to improved
bounce, as nothing fundamental nor technical has supply and partly due to many consumers trying to
changed. Technical analysis of the steam coal has use higher sulphur petcoke. The price discrepancy
shown, since the middle of the year 2014 that if has been maintained despite record low steam coal
and when the market were to break the important prices, with in fact around the same C&F prices
level of US$72, there was no support level before pro rata for steam coal as for petcoke. Demand
US$57-59. in the Atlantic is expected to remain more or less
the same in 2015, with Egyptian imports balanced
The petcoke market seasonally tends to bottom by European consumption which continues to
out in Q4. This is due to several reasons such as fall. The current outlook for high sulphur petcoke
the liquidation of stocks by refineries, with most indicates a 2015 decline for petcoke FOB prices in
preferring not to have any inventories for tax Q2 and Q3, but a recovery in Q4. For mid sulphur
purposes. Consumers similarly try to minimise petcoke, the price pressure is more pronounced
stocks, for capital reasons. From 2011 to 2014 with improved supplies from Venezuela, US Gulf
the market has risen by 10-15% from the end of mid sulphur petcoke losing out to Asian markets,
Q4 until the end of Q1, the only exception was in and with US West Coast petcoke becoming more
2014, when the market only peaked at the middle- competitive. With increasing Indian demand from
end of Q2. In 2014 the markets oscillated around Q4, prices are expected to remain balanced or
the pivotal level of US$60 FOB US Gulf - in a way, even increase, although this will depend on the
the down spread in Q4 is replaced by a similar up steam coal market. Given other energy markets,
spread in Q1.The market, however, seems to have high sulphur petcoke should be at US$40-45
less momentum in 2015 compared to previous FOB US Gulf and mid sulphur petcoke at US$55,
years, which can be explained by the overall meaning a downside of US$5-10 per tonne.
deflation trends, combined with lower demand from
China, pending over supplies from the two Aramco
units, and lower than expected Egyptian imports
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EVENTS
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ACTIVITY REPORT 2014
Following on from this, The Concrete Initiative was Given that, at the time of the launch event, elections
officially launched at Autoworld (Brussels) on 27 were being held across the EU for the new European
May 2014. With Jacki Davies in the moderator seat, Parliament, The Concrete Initiative identified the
a debate was held amongst key representatives need to organise a dedicated networking event in
from the European Commission, the European November 2014 with the newly elected Members
Fire Fighters Unions Alliance, OECD, the Swiss of the European Parliament. Thanks to the efforts
Federal Institute of Technology and an architect. of the CEMBUREAU Members, most notably
A wide ranging series of themes were debated, the Members Plenary Group and the Senior
including shifting towards a performance-based Advisory Group, a large number of MEPs and
construction sector, which encompasses whole MEP assistants joined The Concrete Initiative for
life performance, and the importance of a local dinner in the Strasbourg building of the European
industry to Europes economy. The Concrete Parliament. Although the primary focus of this
Initiative also took this opportunity of unveiling its event was to get to know and network with the new
film which highlights the value of concrete, and the MEPs, The Concrete Initiative had the opportunity
sector as a whole. of providing an overview of the challenges facing
modern society to which concrete can provide
During the second half of the year, The Concrete a positive contribution. Some of the challenges
Initiative adopted a more focused approach, and in highlighted include the fact that European citizens
October 2014 it held its first thematic lunch covering need safe, affordable and resilient housing and
the issue of recycling concrete construction and infrastructure. In addition, growth and jobs needs
demolition waste. This lunch came at a perfect to be stimulated in order to navigate Europe out
time, given the fact that recycling is high up on the of the current crisis. Finally, energy efficiency and
political agenda further to the publication in July low carbon solutions are key if the sector is to
2014 of the European Communication on resource reduce its impact on the environment.
1
efficiency opportunities in the building sector . The Several events are already in the pipeline for 2015,
role of a thematic lunch is to launch a real debate both as CEMBUREAU and The Concrete Initiative,
between technical experts and policymakers without forgetting the bi-annual European Minerals
working directly on relevant legislation. By Day. For more information on what the Concrete
ensuring that the right people were around the Initiative up to, please visit
table, the debate enabled an open discussion on
what works, what does not and what could be the www.cembureau.eu
potential solutions. As such, those invited to the www.theconcreteinitiative.eu
lunch included representatives from the European www.mineralsday.eu
Commission, the Dutch Permanent representation
to the EU, the European Demolition Association, Or follow us on twitter!
and industry experts. Plenty of food for thought
came out of this debate and the discussions will @cembureau
now continue as the issue evolves. Given the very @concretedialogue
positive feedback on this model, The Concrete
Initiative will continue to organise such thematic
events.
1
Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the
Committee of the Regions on resource efficiency opportunities in the building sector. COM(2014) 445
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ACTIVITY REPORT 2014
about cembureau
Meet the team!
Chief Executive
Koen Coppenholle
economic studies Personal Assistant & HR Manager: energy
& statistics Marie-Hlne Troger department
Manager: Logistics & Real Estate Manager: Director:
Alessandro Sciamarelli Noureddine Chafki Sven Rydahl (Cimeurope)
Assistant:
Mireille Tonnet
Assistant:
Sylvianne Liesen
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ACTIVITY REPORT 2014
Austria T. Spannagl
Estonia M. Einstein
Slovenia T. Vuk
Turkey M. Tzn
Members Ex Officio
CEMBUREAU K. Coppenholle
CEMBUREAU C. Lora
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ACTIVITY REPORT 2014
Austria T. Spannagl
Bulgaria S. Schmidt
Estonia M. Einstein
Italy M. Buzzi
Slovenia T. Vuk
Members Ex Officio
CEMBUREAU K. Coppenholle
CEMBUREAU C. Lora
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ACTIVITY REPORT 2014
Latvia: CEMEX LATVIA Serbia: Cementna Industrija Srbije (Serbian Cement Industry
Association)
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ACTIVITY REPORT 2014
Abbreviations glossary
AEL Associated Emission Level
CC Carbon Capture
42
Copyright: CEMBUREAU
N Editeur: D/2015/5457/May
Published by CEMBUREAU
The European Cement Association
Photographs:
Thanks to:
Graphic Concrete Ltd
IStockphoto.com
Corvi from IStockphoto
Claus Bering, photographer