Carbon dioxide emissions and climate change: policy implications for the cement industry

There is growing awareness that the cement industry is a significant contributor to global carbon dioxide (CO2) emissions. It is expected that this industry will come under increasing regulatory pressures to reduce its emissions and contribute more aggressively to mitigating global warming. It is important that the industry's stakeholders become more familiar with greenhouse gas (GHG) emission and associated global warming issues, along with emerging policies that may affect the future of the industry. This paper discusses climate change, the current and proposed actions for mitigating its effects, and the implications of such actions for the cement industry. International negotiations on climate change are summarized and mechanisms available under the Kyoto Protocol for reducing greenhouse gas emissions are explained. The paper examines some of the traditional and emerging policy instruments for greenhouse gas emissions and analyses their merits and drawbacks. The applicability, effectiveness and potential impact of these policy instruments for the global cement industry in general and the Canadian cement industry in particular are discussed with recommendations for possible courses of action.