Climate protection in the concrete and cement industry

Climate protection in the concrete and cement industryBackground and possible courses of action

Publication dataPublisher WWF Germany, BerlinDate February 2019Contact Dr. Erika Bellmann (Climate Protection and Energy Policy WWF Germany) +49 (0)30 311 777-206, [email protected] Patrick Zimmermann (Climate Protection and Energy Policy WWF Germany) +49 (0)30 311 777-203, [email protected] Marijke Küsters, www.mkuesters.com Anita Drbohlav, www.paneemadesign.comPhoto credits Title: thamerpic/GettyImages, p. 4: Simone Hutsch/Unsplash, p. 6: berkay/GettyImages,

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© 2019 WWF Germany · May only be reprinted in full or in part with the publisher’s consent.

ContentSummary 5Climate footprint of the concrete and cement industry 7Specific characteristics of the concrete and cement market 11Technical potentials for greenhouse gas reduction 13Barriers to practical implementation 21Measures and recommended courses of action 27

Cement production is one of the most emission-intensive industrial processes. That is why considerable climate damage is caused by the

use of cement: 2 % of German greenhouse gas emissions and 8 % of global greenhouse gas emissions are caused by cement production. Cement is used for the production of concrete in the construction industry. World-wide demand is expected to grow, as the physical properties of concrete make it an indispensable basic material for the construction of infrastruc-ture and buildings. From a climate protection perspective, it is therefore absolutely essential to find ways of producing cement that are low in CO2 or even CO2-free and to deploy them on a large scale. This will create opportunities for development and growth for the German economy: Germany is an exporter of cement, and the innovative prowess of German plant construction can generate new business opportunities through the development and export of new cement plants, ranging from low-CO2 to CO2-free.

There are many technical approaches, some of which are already availab-le on the market and some of which are still being researched. However, there are many barriers to the widespread use of more climate-friendly cements and concretes. On one hand, the relevant regulatory framework conditions are either insufficient or counterproductive for the use of more climate-friendly cements and concretes. On the other, no use is made of currently existing courses of action; for example, in public procurement, climate protection is not used as a criterion in selection processes.

WWF has therefore identified the following possible courses of action:

■ Create financial incentives for investments in more climate-friendly cements and concretes

■ Update construction law and standards to include climate-protection requirements

■ Comprehensively apply climate-protection criteria when awarding public construction contracts and rigorous implementation of green public procurement

■ Allocate a higher ranking to the climate footprint of building materials during sustainability certification for construction and civil engineering

■ Adaptation of the Energy Saving Ordinance (EnEV) with the integration of requirements for building materials, in line with the goal of that all buildings be climate-neutral by 2050

Summary

Climate protection in the concrete and cement industry | 5

■ Removing misguided incentives with regard to energy efficiency

■ Create legal certainty for carbon capture and storage (CCS) and utilisation (CCU) options

In addition to the above-mentioned measures, the rapid and systematic phaseout of coal and the drastic deployment of electricity generation from renewable energies are of key importance for decarbonising cement production. Many of the possible technical solutions increase electricity demand (e.g. efficiency measures for thermal energy) or are extremely electricity intensive (e.g. CCS/CCU measures). Even if the additional emissions from electricity were statistically assigned to the energy sector, the high CO2 intensity of German electricity increases the carbon foot-print of cement and concrete. Only electricity from renewable energies can enable investments within the cement industry to develop their full climate protection potential.

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Concrete is probably the most important building material of our time. Cement is of key importance as a binding agent for concrete production, in addition to gravel, sand and water. In Germany, 27.5 million tonnes of

cement are consumed annually.1 Forecasts for Germany assume that future cement consumption will either decline or at most stagnate.

The situation is somewhat different on a global scale. According to forecasts, global consumption, which currently stands at around 4.65 bil-lion tonnes of cement2, will rise by 12–23 % from 2014 levels3 by 2050 due to population development, urbanisation and the increasing develop-ment of infrastructure.

This is a problem for the climate because the production of cement produces high greenhouse gas (GHG) emissions. This is mainly caused by two processes. On one hand, very high temperatures (1,450°C) are required for the burning process in which the raw material limestone is burned to form (cement) clinker. This leads to high fuel consumption and therefore high energy-related emissions. On the other hand, the chemical reaction during burning releases CO2 due to the calcination of limestone. Emissions are also caused by the electricity consumed when raw materials and finished products are ground and transported. In total, this results in an average greenhouse gas potential of 587 kg CO2 equiva-lents per tonne of cement in Germany.4

Direct and indirect GHG emissions are generated during numerous steps in the cement and concrete production process. Almost 50 % of the emissions are released when clinker is calcinated during the burning process in the kiln, i.e. process-related emissions. The remaining emis-sions are energy-related and result from supplying heat for the burning process in the kiln (fuels), electricity consumption for grinding, milling and conveying processes, in addition to the transport of raw materials.

1 VDZ (2017): Zementindustrie im Überblick 2017/20182 Cembureau (2017): Activity Report 20173 IEA (2018): Technology Roadmap – Low-Carbon Transition in the Cement Industry4 VDZ / IBU (2017): Umwelt-Produktdeklaration (EPD) Durchschnittlicher Zement Deutschland

Climate footprint of the concrete and cement industry

In total, this results in an average green-

house gas potential of 587 kg CO2 equivalents

per tonne of cement in Germany.


In 2017, the German industrial sector emitted 193 million tonnes of CO2 equivalent5, of which 20.5 million tonnes of CO2 equivalent are due to cement production.6 The cement industry’s GHG emissions account for about 2 % of Germany’s total emissions. Globally, the share is as high as 8 %, which is higher than in Germany.7

5 UBA (2018): Pressemitteilung zur ersten Treibhausgas-Prognose-Berechnung 20176 UBA (2018): Deutsche Emissionshandelsstelle, Treibhausgasemissionen 2017 (VET-Bericht 20177 Beyond Zero Emission (2017): Zero Carbon Industry Plan – Rethinking Cement

Figure 2:Share (in %) of

German industrial emissions in 20175, 6

142

Amount in million tonnes of CO2 equivalent.

0 50 100 150 200

Emissions in 2017

Sector targets in 2030

Figure 1: Total share of

German industrial emissions in 2017 5, 6

Cement clinker

Iron and steel

Refineries

Chemical industry

Other mineral-processing industry

Industrial and construction lime

Paper and pulp

Non-ferrous metals

Other incineration plant

All other industrial sectors

35 % 20 %

11 %

13 %9 %4 %4 % 3 %

2038251887567

8

This results in an acute need for action in the concrete and cement industry. Furthermore, this urgency and relevance are increasing due to the growing impact of cement emissions. The carbon footprint of older buildings almost exclusively concerns the service phase. With an increa-singly high standard of energy efficiency in buildings and a higher share of renewable energies, this ratio is shifting.

Figure 3: Projected trend of greenhouse gas emissions during the life cycle of buildings in terms of volume and distribution8

Fundamental changes in the concrete and cement sector are also necessary due to other important and non-negligible issues concerning environmental protection and sustainability, such as land consumption and loss of biodiversity as a result of quarrying and to some extent global transport of lime, sand and gravel9, in addition to the recyclability of construction materials.

In accordance with the German government’s climate protection plan, the industrial sector is urged to halve its emissions by 2030 from 1990 base levels.10 Climate neutrality must be achieved by 2050 if global warming is to be limited to well below 2°C.11 A significant reduction of emissions in the German concrete and cement industry is therefore essential in order to ensure effective climate protection.

8 Forestry Innovation Investment (2017): Embodied Carbon of Buildings and Infrastructure9 WWF (2018): Impacts of sand mining on ecosystem structure, process and biodiversity in rivers10 BMU (2016): Klimaschutzplan 205011 NFCCC (2015): Paris Agreement

Past

Total GHG emissions

during life cycle

Future

GHG emissions from operation GHG emissions from construction materials


In addition to national efforts, the decarbonisation of the concrete and cement industry is also of crucial importance at global level. Proportio-nally, the global climate footprint of the concrete and cement industry is already higher than in Germany and will even increase due to growing demand. As an industrial location, Germany can play a significant role in two respects. On one hand, German companies export concrete and cement mainly to neighbouring EU countries.12 On the other hand, German industry has a major influence on international developments or sets an example through the export of know-how and through plant construction. German industrial companies can also contribute to the decarbonisation of the concrete and cement industry internationally by leading innovative progress and creating new business models.

12 VDZ (2017): Zementindustrie im Überblick 2017/2018); Statista (2017): Exportierte Zementmenge Deutschlands nach Region weltweit im Jahresvergleich 2013 und 2016 (in 1,000 tonnes)

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Prominent role of the public sectorThe public construction sector is a particularly heavy consumer of concrete and cement. This includes the construction and maintenance of public buildings, such as administrative

buildings, as well as infrastructure, such as roads, on behalf of the Federal government, the Länder and local authorities. It is estimated that this accounts for one fifth of cement consumption, or approximately 6.5 million tonnes of cement in Germany.13

Even higher proportions can be assumed in other countries, particularly in emerging countries with a high demand for infrastructure develop-ment. Consequently, the public sector appears to be a market-determi-ning factor in the concrete/cement market and could influence supply through its demand.

13 Internal estimate of cement consumption in public construction as against the respective shares of construction volume by construction sector (€) based on BBSR: Bericht zur Lage und Perspektive der Bauwirtschaft 2018 und der Aufteilung des Zementverbrauchs nach Baubereichen (Tonnen Zement) nach VDZ (2017): Zementindustrie im Überblick 2017/2018

Specific characteristics of the concrete and cement market

Public civil engineering and non-residential construction

Private residential construction

Private non-residential construction

Private civil engineering

Figure 4: Public sector share of

German cementconsumption13

23 %

31 %27 %

18 %

One fifth of cement consumption

is due to public buildings and

infrastructure.


Significant regionalisationThe cement and concrete industry is organised on a strongly regional basis, which is mainly due to high transport costs. On one hand, the high costs of transport of cement, concrete and the raw materials for their production (sands, gravel, etc.) are due to the considerable weights involved. On the other hand, the physically limited transport capacities of ready-mix concrete limits delivery times or distances to approx. 40 min or about 25 km. Statistics concerning cement deliveries in Germany reflect this fact. Thus, 75 % of cement deliveries take place within a radius of 100 km around the respective plant or terminal and the self-supply rate of the North, East, West, Southwest and South regions in Germany is between 76 % and 88 %. On the other hand, the transport costs of cement at approx. 9–10 €/tonne/100KM are not a negligible factor when one compares them to the value of the product at approx. 64 €/tonne.

In the case of ready-mix concrete, the relevance of transport costs is becoming even more significant. Similar weight-related transport costs are incurred for the product grade size (gravel or sand) required for this purpose, although the value of the goods is only approx. 5–10 €/tonne. For both concrete and cement, there is therefore a strong financial motivation to minimise transport distances, which entails a regionali-sation of the industry.14

14 Bundeskartellamt (2017): Sektoruntersuchung Zement und Transportbeton

75 % of cement is delivered within a radius of 100 km

around the respective plant.

12

Direct and indirect GHG emissions are genera-ted at numerous stages during the cement and concrete production process. Almost 50 % of the emissions are due to the calcination of clinker during the burning process in the kiln,

i.e. process-related emissions. The remaining emissions are energy- related and result from the provision of heat for the burning process in the kiln (fuels), electricity consumption for grinding, milling and con-veying processes, in addition to the transport of raw materials.

There are a number of technical solutions to reduce greenhouse gas emissions during the most emission-intensive process stages in cement production, which can be summarised in the following strategies:

Figure 5: Share of GHG emissions from cement and associated reduction strategies15

Minimising transport routes is also important. The use of low-emission cements and concretes should always be weighed against local avail-ability. Transport-related emissions are particularly difficult to reduce by using a technical solution:

Direct electrification is only suitable for heavy goods transport to a limited extent and decarbonisation would require the use of biofuels or synthetic fuels, which in turn can only be provided in limited quantities in a sustainable and climate-friendly manner.16

15 Figures based on: Maddalena et al (2018): Can Portland cement be replaced by low-carbon alterna-tive materials? A study on the thermal properties and carbon emissions of innovative cements; The following internal assumption was also taken into account: 100 km transport by truck according to Ökobaudat (2018)

16 WWF (2018): Carbon Capture and Utilization (CCU) – Wie klimaneutral ist CO2 als Rohstoff wirklich? WWF (2013): Der Nachhaltigkeit auf der Spur – Vergleichende Analyse von Zertifizierungssystemen für Biomasse zur Herstellung von Biokraftstoffen WWF (2017): EU bioenergy policy

Technical potentials for greenhouse gas reduction

Energy efficiency and fuel substitution

CO2 captureSubstitution of materials

12 % Grinding

35 % Fuels

49 % Calcination of clinker

4 % Transport


Recycled concrete is very important from a sustainability and resource efficiency perspective. However, the climate-protection contribution of recycled concrete is low – with the graded materials only leading to a reduction of approx. 7 %17, or sometimes even an increase18, depending on the application and transport volume. This is due to the fact that only the gravel portion is substituted by crushed concrete, but not the emission-intensive clinker portion. Furthermore, the energy requirements for crushing and grinding remain unchanged or even increase.

Despite the minor contribution to climate protection, the use of recycled concrete in metropolitan areas is recommended because the demolition and reuse of concrete components on site creates a sustainable cycle and reduces mining of raw materials. In regions with relatively low building density, it is necessary to evaluate the impact of transporting crushed concrete components from a remote demolition site on the ecological balance sheet. The increased emissions from transport would probably increase the climate footprint. New developments in concrete recycling may also emerge in the future, where focusing on cement content could lead to a significant effect on climate protection.19

Material substitutionBasically, three substitution strategies can be distinguished:

■ Substitution of concrete as a construction material

■ Reduction of the cement proportion in concrete

■ Reduction of the clinker proportion in cement

Due to the wide range of applications and the physical properties of con - crete, it cannot be completely replaced as a construction material. How-ever, climate-friendly materials can be used where possible, for example in applications with lower static and fire protection requirements.

Timber is a good option as a construction material. Wood is a renewable raw construction material and thus climate-friendly, provided that it is cultivated sustainably and regionally and used in a cascading manner.

17 Berlin Senate Department for Urban Development and the Environment (Senatsverwaltung für Stadtentwicklung und Umwelt Berlin) (2015): Documentation on the use of resource-saving concrete

18 European Cement Research Academy (2015): Closing the loop: What type of concrete re-use is the most sustainable option?

19 Universitaet Leiden, TU Delft (2015): Closed-loop economy: Case of concrete in the Netherlands

Recycled concrete contributes to a circular

economy and saves natural resources.

14

To ensure a more environmentally-friendly and socially-acceptable forestry and timber industry in Germany, at least FSC (Forest Steward-ship Council) certification must be obtained.20 Many examples show that requirements regarding heat, sound and fire insulation as well as economic efficiency can be excellently attained with modern timber constructions.21

In addition to the complete replacement of concrete, other possible solutions such as composite22 or shell constructions23 as well as new types of high-strength reinforcement, such as carbon24, or ultra-lightweight concrete with a high air content25 are also suitable for reducing concrete consumption. Although these new types of concrete structures can make a contribution to climate protection, some sustainability aspects are still unresolved, e.g. recycling. For the remaining cases where concrete cannot be replaced, for instance in tunnel construction, foundation works and in buildings with high static requirements, then more climate-friendly concretes and cements should be used. The climate footprint of concrete and cement can be minimised mainly by reducing the clinker content. In order to achieve this, it is possible to reduce not only the proportion of clinker in cement, but also the proportion of cement in the concrete mix. This can be achieved by adding various other (secondary) raw materials with similar chemical and physical properties. The most common substitutes are currently fly ash from coal-fired power plants26 and granulated blast furnace slag from steel production.27 The addition of these materials enables a significant reduction in GHG emissions from cement. However, 81 % of the coal fly ash produced is already used for concrete and cement production. Due to the advancing transformation of the energy sector (coal phase-out28) and the future decarbonisation of steel production, the availability of these raw materials is expected to decline.29

20 WWF (2018): Nachhaltige Waldnutzung – FSC21 Cheret, Schwaner, Seidel (2013): Urbaner Holzbau. Handbuch und Planungshilfe IBA Hamburg

(2014): Smart Material House WOODCUBE UBA (2017): House 2019 – Ein Null-Energie-Gebäude im Betrieb.

22 König, Holschemacher, Dehn (2004): Holz-Beton-Verbund (Wood-concrete composite)23 Cobiax; www.cobiax.com24 Carbon Concrete Composite (C3): www.bauen-neu-denken.de25 Infralight concrete (or insulating concrete): www.infraleichtbeton.de26 WIN e.V. (2016): Flugasche als Betonzusatzstoff 27 BASF (2013): ECO-Zement – Energieeinsparung und CO2-Minderung bei der Zementproduktion

durch die Herstellung hüttensandreicher Zemente mit verbesserter Anfangsfestigkeit28 WWF (2017): Zukunft Stromsystem – Kohleaussteig 2035 – Vom Ziel her denken;

WWF (2018): CO2-Mindestpreise im Instrumentenmix einer Kohle-Ausstiegsstrategie für Deutschland29 BBS (2018): Die Nachfrage nach Primär- und Sekundärrohstoffen der Steine-und-Erden-Industrie

bis 2035 in Deutschland

The climate footprint of concrete and cement

can be minimised mainly by reducing their clinker content. Various

(secondary) raw materials are available as a means

of achieving this.


This is why the development of other alternative substitution materials is recommended. These are mainly limestone30, calcined clays, geopolymers, hydraulic calcium hydro-silicates or magnesium and phosphate binding agents.31

By using these substitution materials, the cement content of concrete can be reduced to approx. 150–180kg/m³, depending on the required con-crete properties, and therefore GHG emissions can be reduced by approx. 30–65 %.32,33

Energy efficiency and fuel substitutionIn addition to optimisation at product level, production processes can also be further improved.34 As it makes good economic sense to invest in order to improve the efficiency of electrical and thermal energy consump-tion during energy-intensive cement production, potential in this area is often largely exploited for reasons other than climate protection.

Electrical energy is required in the cement production process for various sub-processes, e.g. for crushing and grinding the raw materials and end products, for in-house transport and mixing processes, and for the rotary kiln. In order to continuously increase efficiency, the latest technologies (e.g. most efficient electric motors, etc.) should always be used and old plants should be successively replaced.35

The production of conventional cements requires very high temperatures (1,450 °C), which results in high GHG emissions when the thermal energy is provided by fossil fuels. Efficiency measures are therefore particularly worthwhile when using thermal energy. These include using waste heat and exhaust air (e.g. waste-heat conversion into electricity) and developments concerning the rotary kiln (heat recovery, preheating, pre-calcination, utilisation of radiant heat).

30 Palm (2016): Cements with a high limestone content – Mechanical properties, durability and ecological characteristics of the concrete

31 Celitement (2010): Celitement – eine nachhaltige Perspektive für die Zementindustrie32 Proske et al. (2012): Stahlbetonbauteile aus klima- und ressourcenschonendem Ökobeteon, in:

Beton- und Stahlbetonbau (Volume 107, Issue 6, 06/2012)33 TU Graz (2016): TU Graz entwickelt umweltfreundlichen Ökobeton34 DIW (2015): Modernisierung und Innovation bei CO2-intensiven Materialien: Lehren aus der Stahl-

und Zementindustrie35 Cembureau (o.J.): The role of cement in the 2050 low carbon economy

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Such techniques for increasing thermal efficiency often lead to higher power consumption. As there is still a high level of coal-fired electricity in the German electricity mix, the continuing high CO2 intensity of German electricity partially negates the potential of these measures to reduce emissions.34 Low-emission electricity is urgently needed so that efficiency measures in the cement industry can develop their full potential.

In addition to efficiency measures, GHG emissions in the production process can also be reduced by increasing the share of renewable or alternative energies. Numerous secondary fuels (e.g. municipal waste) are already being used to provide heat in kilns36. However, the high process temperatures make it difficult to heat rotary kilns electrically, thus enabling them to use renewable energies. As with transport, there is also the possibility for the limited use of bio- or synthetic fuels.

CO2 capture (CCS/CCU)As can be seen in figure 5, a high proportion of the CO2 is produced when cement clinker is burned via the calcination of limestone. These emissi-ons are unavoidable as long as cement is used at least partially as a binding agent. To prevent these emissions and the residual emissions from supplying energy from directly entering the atmosphere and damaging the climate, it is possible to capture and store the CO2 released from the exhaust gases (Carbon Capture and Storage – CCS) or use it for other industrial processes (Carbon Capture and Utilization – CCU).

Cement production waste gases contain approx. 14–33 % of CO2.37 In order to store or use this, it is necessary to capture the highest possible concentration. Various approaches exist for this purpose, e.g. post- combustion technologies. The most promising are currently the oxyfuel process38,39 and the calcium-looping process40, which are already being tested and optimised in various pilot and research plants.41

36 VDZ (2017): Zementindustrie im Überblick 2017/201837 IASS / Adelphi (2016): CCU: Klimapolitische Einordnung und innovationspolitische Bewertung38 VDZ (2009/2012): Minderungspotential von CO2-Emissionen durch den Einsatz der Oxyfuel-Techno-

logie in Drehofenanlagen der Zementindustrie (AiF research project No. 15322 N & No. 16811 N)39 VDZ (2017): Erster Zementklinker mit Oxyfuel-Kühler hergestellt40 CLEANKER: CLEAN clinKER41 CEMCAP: CEMCAP

Some emissions cannot be avoided as long as

cement is used as a binding agent.


After capture, the CO2 is available in concentrated form for various applications. In addition to simple storage or sequestration (CCS), e.g. in empty gas fields or underground, porous rock layers, it especially makes sense to use it (CCU) in other industrial processes. This creates further added value and reduces dependence on fossil fuels and GHG emissions. Various processes are available for recycling CO2, but they are at different stages of development. Among others, the following applications seem to be the most relevant and promising for the concrete and cement industry:42,43

■ Carbonation of mineral raw materials: Carbonation is a natural process in rock formations. This process is accelerated in industrial applications, whereby captured CO2 reacts with decomposed rock or industrial residues, e.g. slags or fly ash. The resulting carbonates and silicates provide an interesting raw material for the construction and cement industry. The advantage of this method is the permanent fixation of CO2 within building materials.44

■ Biological recovery: Captured CO2 can also serve as a nutrient for microorganisms, which use photosynthesis to metabolise it into oxygen and biomass. The biomass is used for food supplements, basic materials of the chemical industry, pharmaceuticals, cosmetics, as an additive for agriculture or used for energy production.

■ Chemical derivatives and synthesis gas: Through various chemical (synthesis) processes, CO2 can also be used as a basic material for the chemical industry. Examples of potential chemical derivatives are urea, inorganic carbonates or formaldehyde. The purity of CO2 is particularly important for its further chemical use, which makes further exhaust-gas purification necessary. By using CO2 as a chemical base material, the chemical industry’s reliance on fossil raw materials can be reduced or overcome. A reduction of greenhouse gases in the chemical manufacturing sector is also possible under the condition that renewable energy sources are used for CO2-neutral production.

42 Lehner et al. (2012): CCU – Verfahrenswege und deren Bewertung43 Adelphi & IASS (2016): CCU – Klimapolitische Einordnung und innovationspolitische Bewertung44 RWTH Aachen & Heidelberg Cement (2017): “CO2Min” research project

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■ Synthetic fuels (power-to-gas/power-to-liquid): These technologies are the most advanced processes for using CO2, some of which are now ready for application. Provided that they are CO2-neutrally produced using electricity from renewable energies, power-to-gas/power-to-liquid technologies can reduce dependence on fossil fuels and contribute to climate protection in the electricity, heating and transport sectors. However, the disadvantage of these processes is that they are highly electricity intensive and the fact that CO2 does not remain bound in the product, but is released again after a very short time through combustion in an engine or heating system.45

The capture and enrichment of CO2 is accompanied by an increase in energy consumption. Such measures are therefore only meaningful if they are combined with the efficiency and substitution measures descri-bed above, otherwise CO2 emissions will increase overall. Moreover, we cannot continue using CO2 in an unrestricted and thoughtless manner. Instead, the respective technologies should be compared by using life-cycle assessment studies, taking into account the individual framework conditions. This is the only way to determine whether and which CCS or CCU technologies make ecological sense for each individual plant and application.

Load management in the concrete and cement industryWith a power supply increasingly based on supply-dependent renewable energies, the flexibilisation and synchronisation of supply and demand is becoming increasingly important. In this way, highly electricity-intensive industrial processes can exploit a relatively wide-reaching potential that can be tapped in the short term. In the concrete and cement industry, there is good potential for achieving industrial demand flexibility, “since production capacities can be used very flexibly and are not fully utilised”.46 Load-management measures can be implemented primarily when grinding raw materials and cement. Even today, cement mills are operated mainly at night and at weekends, i.e. at times when electricity tariffs tend to be lower due to low demand.

45 WWF (2018): Carbon Capture and Utilization (CCU) – Wie klimaneutral ist CO2 als Rohstoff wirklich??46 UBA (2015): Potentiale regelbarer Lasten in einem Energieversorgungssystem mit wachsendem

Anteil erneuerbaren Energien


By synchronising the operating times of the mills with the availability of renewable electricity, it is possible to make a highly valuable contribution to the energy transition and decarbonisation of the electricity sector. The cement sector can thus provide an average technical flexibility potential of 172 MW, in each case through load shedding and load switching.47

47 Kopernikus Projekt SynErgie (2018): Flexibilitätsoptionen in der Grundstoffindustrie

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The GHG emissions of the German concrete and cement industry have remained unchanged for years. The many reasons for this are dis-cussed below.

Figure 6: GHG emissions of the German cement industry48

Insufficient CO2 price due to the ineffectiveness of the European Emissions Trading SystemThe central instrument for reducing GHG emissions in the EU, the Emissions Trading System (ETS), has not contributed to emission reductions in the concrete and cement industry. In its current form, the concrete and cement industry is classified as being vulnerable to carbon leakage, which is why it receives emission allowances free of charge. As a result, there is no corresponding financial incentive and the EU ETS has no incentive effect. On the contrary: Since the inception of the EU ETS in 2005, the greenhouse gas emissions of the cement industry have actually increased within the EU.49

48 Based on total emissions according to UBA: German Emissions Trading Authority, greenhouse gas emissions 2008–2017 (VET reports) and cement-production volumes according to VDZ (2016): Environmental data of the German cement industry

49 Sandbag (2016): Cement Exposed

Barriers to practical implementation

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GHG emissions of the German cement industry in millions of tonnes

GHG emissions per tonne of cement


Outdated building regulations and standardsThe current versions of the building regulations (Model Building Code MBO and the Länder Building Codes LBO) make virtually no reference to sustainability and climate protection. Despite the high climate relevance of the construction industry in general and of the concrete and cement industry in particular, these central legal instruments do not enshrine the precautionary principle or provide for sustainability and climate protection requirements.50

Frequently, European cement standards and national concrete standards do not allow the use of cements and concretes with reduced clinker content or they force the user to go through the complex procedures of

“approval by the building authorities” or “approval in individual cases (ZiE)”.51,52 The strong focus of standards on conventional products with a comparatively high clinker factor or cement content is an impediment to innovation as well as the market launch and distribution of more climate-friendly concretes and cements, and in some cases even prevents them from being launched. There has not yet been a successful review of these standards, despite numerous research studies that have shown that the technical and construction-physical properties of alternative products are equivalent to those of conventional products.50,53

Absence of climate-protection criteria when awarding public construction contractsWith the exception of the German Länder of Baden-Württemberg54 and Berlin55, which actively support the use of recycled concrete, there are no public-sector incentives for raw material efficiency or the decarbonisation of the concrete and cement industry. One reason for this is that the relevant building owners, administrative employees and planners are not sufficiently aware of the problem.

50 UBA (2015): Nachhaltigkeitsaspekte in den Bauordnungen der Länder51 Proske et al. (2012): Stahlbetonbauteile aus klima- und ressourcenschonendem Ökobeton. In: Beton- und Stahlbetonbau (Volume 107, Issue 6, 06/2012)52 DIBt: Zustimmung im Einzelfall (ZiE); Proske (2014): Umwelt- und performanceorientierte

Betonentwicklung53 TU Graz (2016): TU Graz entwickelt umweltfreundlichen Ökobeton54 Baden-Württemberg Ministry for the Environment, Climate and Energy (2016): Bericht zu Recycling-

Beton veröffentlicht; Baden-Württemberg Land Parliament: Printed Document 16/1694; Programm-system Nachhaltiges Bauen in Baden-Württemberg: Nachhaltigkeitskriterium 3 – Nachhaltige Ressourcen- verwendung bei Holz- und Betonbauteilen

55 Berlin Senate Department for the Environment, Transport and Climate Protection Berlin (2018): Einsatz von RC-Beton bei öffentlichen Hochbaumaßnahmen im Land Berlin

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The other reason is that there are uncertainties and misinterpretations regarding the so-called cost-effectiveness rule in tenders for building-construction and civil-engineering projects. As a result, the lowest price is often still the central and often the only decisional criterion for awar-ding of public construction contracts, and higher prices are assumed for climate-friendly concretes and cements.56 This assumption is not always correct, because more climate-friendly concretes and cements can be equivalent or even better value for money.57 However, it can be expected that serious decarbonisation efforts that take into account more than the cheapest possible option will also result in additional costs.

Despite the need for cost-effectiveness, opportunities do exist for the use of more climate-friendly concretes and cements. European and German public-procurement law allow or even oblige in some cases to take environmental considerations into account during public procurement. A wide range of existing guidelines and tools support users in the respec-tive tendering processes. Nonetheless, it must be noted that hardly any climate protection criteria are applied when awarding public construc-tion contracts, which is due to the following aspects, inter alia:55,58,59

■ There is no clear political mandate to formulate policies on how to finance the additional costs of taking environmental aspects into account.

■ The cost-effectiveness rule can give rise to different interpretations – the most economically advantageous tender (MEAT) criterion vs. the lowest price criterion.

■ In most cases, the application of climate-protection criteria in tende-ring processes means additional time and financial expenditure for tenderers and bidders.

■ Tenderers and bidders sometimes lack the legal and technical expertise for alternative procurement procedures that take greater account of climate-protection aspects.

■ The varying financial situations of local authorities make it difficult to justify and finance additional expenditure on climate-friendly products and materials.

56 Chiappinelli, Zipperer (2017): Öffentliche Beschaffung als Dekarbonisierungsmaßnahme: Ein Blick auf Deutschland, DIW-Wochenbericht No. 49/2017

57 Proske et al. (2012): Stahlbetonbauteile aus klima- und ressourcenschonendem Ökobeton. In: Beton- und Stahlbetonbau (Volume 107, Issue 6, 06/2012)

58 UBA (2017): Rechtliche Grundlagen der nachhaltigen Beschaffung59 Leuphana (2015): Öffentliche Beschaffung nachhaltig gestalten

More climate-friendly concretes and cements

can be equivalent or even better value for money.


■ The guidelines and assistance tools for green public procurement do not take the climate relevance of concrete and cement sufficiently into account. Moreover, the legal status of these documents is only for informational and reference purposes. The basis on which a legally secure authorisation to apply climate protection criteria in tendering processes should be founded is therefore frequently unclear.

The legal requirements for buildings do not include consideration of the climate protection aspect of building materialsThe Energy Saving Ordinance (EnEV)60 is the central regulatory energy and climate protection instrument in the building sector. In its current version, the Energy Performance Certificate and the associated calculation methodology enshrined therein only deal with energy consumption, i.e. greenhouse gas emissions during the service phase of buildings. The building materials used are not taken into account, even though their relevance is increasing (see Figure 3). There are therefore no legal require-ments regarding the climate footprint of building materials, e.g. concrete or cement, which means that there are no incentives for building owners and planners to take them into account. The European target of a Nearly Zero Energy Building also makes not reference to building materials.61

The certification systems for buildings underestimate the climate protection aspects of construction materialsCertification under the “Assessment System for Sustainable Building” (Bewertungssystem Nachhaltiges Bauen – BNB) is mandatory for Federal buildings (construction), where at least the Silver Standard must be observed.62 The German Sustainable Building Council’s (Deutsche Gesellschaft für Nachhaltiges Bauen) certification mechanism is the relevant counterpart for private building owners.63 In addition to various other sustainability criteria, both systems also evaluate the ecological balance sheet of the building, which also takes into account emissions from concrete or cement. However, it should be noted that the greenhouse

60 Energy saving ordinance EnEV61 Nearly Zero Energy Building Standard62 www.bnb-nachhaltigesbauen.de63 www.dgnb-system.de/de

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gas emissions associated with the choice of building material and thus the use of cement and concrete make up a negligible proportion (~1 %) of the overall certification result.64

Lack of certification systems for civil engineeringDespite the high consumption of concrete and cement (cf. Figure 4) and the fact that concrete is difficult to substitute as a building material in civil engineering, it must be noted that no integrated sustainability certification systems similar to the BNB or DGNB system in building construction have yet been established for this sector. Climate protection therefore continues to play a minor role in civil engineering.

Misguided incentives concerning energy efficiencyA decisive barrier, which among other things prevents companies in the cement industry from investing in (energy) efficiency measures, is the special adjustment mechanism (BesAR) under the Renewable Energy Sources Act (EEG). It caps the amount of the EEG levy for companies with high electricity costs, which includes cement manufacturers. In its current form, the BesAR constitutes a major barrier due to its rigid access threshold. The benefit is lost if the threshold is exceeded with respect to electricity cost intensity, which from an economic point of view can be of greater significance than the possible energy cost savings.65 The current regulations on own electricity generation can also act as a barrier. They can make power generation from waste heat appear uneconomical or prevent own solar/wind power plants from meeting one’ s own elec-tricity needs. As described above, as efficiency measures concerning thermal energy are most effective when they renewably generated electricity, this can be a disadvantage for climate protection.

64 Approximate figure calculated according to Reiners (2011): Stellung von Zement und Beton in der Nachhaltigkeitsdiskussion unter Berücksichtigung der Aktualisierung des Systems nach DGNB (2018): DGNB System – Kriterienkatalog Gebäude Neubau – Version 2018 – ENV1.1 Ökobilanz des Gebäudes (the ecological balance sheet accounts for 9.5% of the overall assessment)

65 DENEFF (2016): Die Besondere Ausgleichsregelung im Sinne von Energieeffizienz und Wettbewerbs-fähigkeit weiterentwickeln


A lack of legal certainty for CCS and CCU optionsAt present, the lack of a legal framework for the deployment of CCS and CCU technologies is having a negative impact on the willingness of industry to invest. For example, issues such as access to CO2 reservoirs, CO2 pipeline construction, the transport of CO2 to the reservoirs and the crediting of CO2 reuse have not been conclusively resolved. This makes it impossible for interested and committed companies to invest in CCS or CCU technologies early on.

Insufficient incentives and framework conditions for flexible industrial electricity demandThe current structure of the electricity market does not provide a suitable framework and only provides insufficient incentives for increasing the demand flexibility of electricity-intensive companies, e.g. in cement production.

26

For industrial companies to be able to invest meaningfully in reducing emissions, the electricity mix in Germany must significantly improve as swiftly as possible. Even if emissions from electricity procurement are statistically

allocated to the energy sector, the electricity mix used is decisive for the climate footprint of cement and concrete. Efforts aimed at reducing the demand for thermal energy lead to increased electricity demand and CCS/CCU measures are highly electricity intensive. These substantial measures have great climate-protection potential, but can only attain this potential if the electricity is largely CO2-free or is generated 100 % from renewable energies. It is therefore imperative that the phaseout of coal in Germany be commenced and completed as soon and as comprehensively as possible. It is necessary to accelerate the development of renewable electricity generation and corresponding grid expansion. Simultaneously, it is necessary to examine how companies can be enabled to develop additional renewable electricity generation for their (increasing) own needs in a cost-efficient manner.

Furthermore, in order to successfully reduce GHG emissions from concrete and cement production, the barriers described above must be overcome through a multilateral strategy. Financial incentives need to be created (pricing), legal barriers reduced (standardisation), demand stimulated (Green Public Procurement) and existing tools improved (Energy Saving Ordinance, sustainability certification):

Create financial incentivesRestructure the European Emissions Trading Scheme (EU ETS)To enable the European Emissions Trading Scheme (ETS) to send the appropriate price signal to the concrete and cement industry, changes must be made with regard to the free allocation of allowances to the cement industry. The free allocation of allowances should be terminated or adjusted to the actual “carbon leakage” risk of the concrete and cement sector. As a result of the high transport costs and physical transport restrictions, the industry is mainly organised on a regional basis, which means that only very little cement is imported into the EU66, thus consi-derably reducing the actual risk of carbon leakage.

66 Healy, Schumacher, Eichhammer (2018): Analysis of Carbon Leakage under Phase III of the EU Emissions Trading System: Trading Patterns in the Cement and Aluminium Sectors

Measures and recommended courses of action

The quickest possible phaseout of coal and

the rapid deployment of renewable energies

is also essential for reducing GHG emissions

in the concrete and cement industry.


Instead of free allocation, so-called Border Carbon Adjustment (BCA) can ensure fair treatment of cement-exporting and cement-importing compa-nies. These measures could be implemented in combination with outright auctioning and would effectively reduce GHG emissions in the concrete and cement industry. Changes should also be made to the current CO2 benchmarks for the cement industry, which until now have been related to clinker production. These clinker benchmarks should be replaced by cement benchmarks in order to make more climate-friendly substitutes more attractive.67

Inclusion of a consumption charge within the European Emis-sions Trading SystemThe current design of the EU ETS only targets the producers of emission-intensive materials. It would also make sense to include intermediate and final consumers. This could be achieved by a consumption charge on CO2-intensive materials such as cement. Nevertheless, in order to generate an effective CO2 price signal and prevent negative developments, the consumption charge should be implemented in combination with the dynamic allocation of emission allowances within the EU ETS.

The consumption charge takes into account the entire value chain when manufacturing materials (not only the final consumers, e.g. households, but also the use of the materials in production) and includes both direct and indirect GHG emissions based on benchmarks. The amount of the charge would be determined via the CO2 price in the EU ETS, the weight of the material and product-specific emission characteristics. The pro-ceeds would be paid into a climate protection trust fund, for instance. The CO2 consumption charge would not apply to exported products not covered to this pricing. In the case of an import, however, the importing company must pay the CO2 consumption charge, but can pass it on to consumers.68,69,70

67 Carbon Market Watch (2016): Cement´s pollution windfall from the EU ETS; Sandbag (2017): The Cement Industry of the Future; Sandbag (2016): Cement Exposed

68 DIW (2018): Klimafreundliche Herstellung und Nutzung von Grundstoffen: Bündel von Politik-maßnahmen notwendig

69 DIW (2016): Ergänzung des Emissionshandels: Anreize für einen klimafreundlicheren Verbrauch emissionsintensiver Grundstoffe

70 DIW (2015): Maßnahmen zum Schutz vor Carbon Leakage für CO2-intensive Materialien im Zeitraum nach 2020

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Contracts for DifferenceSo-called “Carbon Contracts for Difference” (CCfD) are a useful addition to existing support programmes. Under these contracts, a price is set for each tonne of CO2 saved over a certain period of time for an investment in a climate-friendly process or material. If the price of CO2 is lower than this price, the investor receives the difference from the State. If the CO2 price is higher, the investor must refund the difference. Contracts for difference thus enable cost-effective financing of climate-friendly invest-ments. The incentive to make such investments can also be increased in the early years by setting a higher CO2 price than the current EU ETS price.69,71

Amend standards and building regulations to include climate-protection requirementsIn order to consolidate the sustainability and climate-protection dimensi-on, this should be enshrined at the very core of the general requirements specified in the Model Building Code (MBO).72

Rapid progress should be made in the further development of standardi-sation, which currently represents a major barrier to the establishment of more climate-friendly concrete and cement alternatives. The EN 206-1, EN 197-1 and DIN 1045-2 standards are relevant in this context, where proposals and drafts for the review thereof already exist73 and the compa-rison with other countries shows potential for improvement.74

Moreover, barriers in construction law preventing the use of more climate-friendly building materials, e.g. wood, should be rapidly removed. Given that regulatory and construction oversight reforms are very time consuming and considering the acute need for action in order to achieve the climate goals, it is recommended that the necessary processes be swiftly initiated at political and administrative level and that there be an intensive exchange with the relevant stakeholders, e.g. companies, research and the organisations responsible for standards.

71 DIW (2017): Project-Based Carbon Contracts: A Way to Finance Innovative Low-Carbon Investments72 UBA (2015): Nachhaltigkeitsaspekte in den Bauordnungen der Länder73 DIN EN 197-1:2014-07 – draft74 Proske et al (2014): Mischungszusammensetzung nachhaltigkeits-optimierter Konstruktionsbetone auf

Basis internationaler Regelwerke. In: Beton- und Stahlbetonbau (Volume 108, Issue 10, 10/2014)


Comprehensive deployment of Green Public Procu-rementGreen public procurementIn order to stimulate the demand for climate-friendly concretes and cements, public procurement must exploit its important role in the market. A legally secure basis for the application of climate protection criteria in tendering procedures for building and civil engineering projects must be created at both Federal and Länder level. In doing so, it is neces-sary to ensure that the tendering parties are obliged to apply climate protection criteria and are authorised to absorb any additional costs that may result. Public procurement law already has the necessary framework conditions, but more comprehensive implementation is needed.

A fundamental, central condition for this is that the financing is guaran-teed by the Federal government, which should assume any additional costs. This will ensure that Länder and local authorities that are financi-ally less well-off can also take appropriate action to protect the climate in construction measures involving concrete and cement. This counter-fun-ding of the additional costs should also cover the training and further training of experts in the relevant authorities in the municipalities and Länder. For instance, funds from the Energy and Climate Fund could be allocated for this purpose. However, funding should not be limited to contributions from the fund. On the contrary, funding must be sufficient in order to allow the application of climate-protection criteria to all public sector projects. From a macroeconomic life-cycle perspective and taking into account external costs, e.g. due to environmental damage or failure to meet mandatory climate protection targets, overall expenditure can be expected to be lower.

With the MEAT principle and the general public procurement law frame - work, there are already mechanisms for integrating climate-protection aspects into the tendering process for concrete and cement construction works.

Clear political guidelines must be developed for the implementation of Green Public Procurement (GPP). The process in Berlin can be seen as a model in this respect. In 2010, the Berlin Tendering and Procurement Act (BerlAVG) was passed, which obliges public-procurement agencies to apply ecological criteria in procurement, taking into account life-cycle costs.

Public procurement law already has the necessary

framework conditions.

30

Based on this, the Berlin Senate issued the “Administrative Regulation for the Application of Environmental Protection Requirements in the Procurement of Supplies, Works and Services (Administrative Regulation Procurement and Environment – VwVBU)”. “It provides for a feasible implementation of the legal requirements for environmentally compatib-le procurement. This regulation also aims to achieve the necessary simplification and transparency in public procurement”.75

In addition to empowering the relevant tendering institutions, the form of the tendering process and the underlying criteria are of key impor-tance. Procurement guidelines and the tools to support the tendering institutions in the preparation and formulation of tenders and the corresponding criteria must therefore be reviewed. Any existing technical shortcomings with regard to climate protection aspects in the use of concrete or cement as a building material should be addressed in the relevant guidelines (on resource-efficient/green public procurement76 and sustainable construction77) and tools of the authorities, and should be taken into account in the information provided by the Competence Centre for Green public procurement78 and in the Federal Environment Agency’s theme portal.79

Various options are available for the actual implementation of climate protection aspects in the invitation to tender for construction projects involving the use of concrete and cement. It is essential to use systems and criteria that are easy to use and that are clearly comprehensible – both for the tenderers and the bidders.

A notional CO2 price for the public sectorIn order to assess the climate-protection dimension in tenders, the reduction in GHG emissions can be offset against the bid price. To do so, the emission intensity of the bid for the construction project must be assessed and financial deductions must be determined depending on the emission intensity. The combination of the tender price and these percentage deductions then results in a notional, built-in tender price, which forms the basis for the decision. The advantage of this method is that the price remains the decisive criterion. This method is used by the Rijkswaterstaat authority in the Netherlands.80

75 Berlin Senate Department for the Environment, Transport and Climate Protection: Green public procurement

76 Alliance for Sustainable Procurement (2014): Guidelines for Resource Efficient Procurement77 BMUB (2016): Leitfaden Nachhaltiges Bauen78 www.nachhaltige-beschaffung.info79 UBA: Umweltfreundliche Beschaffung80 GPP 2020 (2014): Construction of a low-carbon motorway exit


Quality criteria/ecological thresholdsIn construction competitions for public buildings, wood should be the preferred building material for building structures and load-bearing components. The use of domestic hardwood as a building material is particularly welcome. If this is not possible, then the following options exist for formulating quality criteria or ecological thresholds when using concrete and cements: It is possible to formulate precise product or material specifications, e.g. a minimum percentage of fly ash. This cannot however be recommended if one takes the future limited availability or unforeseen developments into consideration. Instead, the criteria should be struc tured in a way that is open to technology and development. For example, it is possible to set a maximum value for the specific GHG emissions (GWP potential) per tonne of concrete or cement used. Alternatively, in view of the high climatic relevance of these components, the definition of a maximum clinker factor or a maximum cement content can also be defined. When setting GHG limits, a kind of top-runner principle should be applied so that they provide a continuous incentive to develop and offer materials with progressively lower emissions.

These quality criteria are necessary in addition to a notional CO2 price, because CO2 emissions in a construction project can be reduced in a number of ways that do not necessarily have to involve emission- intensive materials. A combination of a notional CO2 price and quality criteria must be used so that public procurement stimulates a variety of climate protection measures in a way that is open to technology on one hand, but on the other hand achieves targeted emission reductions for the particularly relevant materials.

Mandatory certification with high climate-protection relevanceThe climate-protection dimension can be enshrined in the public procure ment process via the mandatory submission of certificates or seals. The prerequisite is that these certificates or labels place a high focus on climate-related aspects and set corresponding thresholds. The bidders are responsible for providing the relevant justification during the certification process. The verification process within the award process is simplified and enhanced, as only the certificates or labels need to be checked.

A maximum value for GHG emissions

per tonne of concrete or cement can be set

as a criterion in tendering procedures.

32

An example of the application of this methodology is provided by the Federal government itself, although the focus is not on climate protection but on sustainable resource extraction. In 2011, the German government passed a decree on the procurement of wood products, according to which the Federal administration may only procure wood products from sustainable management, i.e. they must be certified by the Forest Stewardship Council (FSC).81

Further development of the legal and statutory framework with respect to buildingsThe legal and statutory framework conditions with respect to buildings – primarily the Energy Saving Ordinance (EnEV) and the Renewable Energies Heat Act (EEWärmeG) – must be further developed and made more stringent so that they are in line with the climate-neutrality goals concerning buildings by 2050. In this context, not only the use of buil-dings but also the building materials used (i.e. the entire life cycle including the production phase) should be taken into account.

Adapt sustainability certification for construction and civil engineeringIn principle, the WWF welcomes the application of the BNB and DGNB systems. Nevertheless, a number of changes or additions should be made for climate protection reasons. The ecological balance sheet ranking allocated to the building should play a more prominent role and the central database (Ökobaudat82) used to prepare this ecological balance sheet should provide more precise values for different concretes and cements in order to reward the use of more climate-friendly concretes or other building materials accordingly. The same applies to the ecological building-material information system (WECOBIS83). In addition to these technical changes, it would also be beneficial to extend the application of the system. The application of the system should also be manda tory at Länder and municipal level, and an adapted form84 should also apply to civil-engineering projects. The coverage of (additional) costs by the Federal government should ensure that the system can be adequately funded and reduce the number of exemptions granted (often for cost and manpower reasons).

81 Federal Government: Gemeinsamer Erlass zur Beschaffung von Holzprodukten (Joint Decree on the Procurement of Wood Products)

82 www.oekobaudat.de83 www.wecobis.de84 Federal Highway Research Institute (Bundesanstalt für Strassenwesen) (2016): Weiterentwicklung

von Verfahren zur Bewertung der Nachhaltigkeit von Verkehrsinfrastrukturen


Eliminate misguided incentives concerning energy efficiencyA reform of the Special Adjustment Mechanism (BesAR) under the Renewable Energy Sources Act (EEG) can correct misguided incentives concerning energy efficiency measures. This particularly concerns the blanket standardisation of electricity consumption according to sector. Recommended short-term measures include random sampling in the threshold range, as well as monitoring progress in energy efficiency by means of suitable key indicators. In the medium term, the electricity cost intensity of companies should be calculated on the basis of key indicators for sector and cross-sectional technologies.85 For sectors that do not have benchmarks, it is also important to check that electricity costs account for at least 14 % of gross added value. Furthermore, the share of privileged electricity production should be gradually reduced.86

Create legal certainty for CCS and CCU optionsIn order to eliminate any risk associated with investment, a correspon-ding legal framework for CCS and CCU technologies must be developed as soon as possible, e.g. in the form of a “German CCS and CCU Develop-ment Plan (for process-related industrial emissions)”. In the case of CO2 storage (CCS), an inventory of CO2 storage options, the highest safety standards, fair consideration of competing uses in the broadest sense and a regional balance of interests should be taken into account. When CO2 (CCU) is reused, uniform definitions must also be established with regard to the imputability and creditability of emission reductions along the CO2 value-creation chain.

This requires the development of a precise vision for the necessary infrastructure expansion, which will solve the resulting conflicts of use both in the short term (the demonstration project phase) and in the longer term (the commercial use phase). Given the complexity, the legal framework must be structured in such a way that, during the demonstra-tion phase, reliable experience can be gained with regard to the legal framework, institutions and procedures, leading to the initiation of relevant (market) developments (insurance products, assessment/certification etc.). This is the only way to guarantee the protection of the environment and health in the long term in the event of broader com-mercial use of CCS and CCU technology, and to allocate the resulting

85 DENEFF (2016): Die Besondere Ausgleichsregelung im Sinne von Energieeffizienz und Wettbewerbsfähigkeit weiterentwickeln

86 DIW (2013): Vorschlag für die zukünftige Ausgestaltung der Ausnahmen für die Industrie bei der EEG-Umlage

34

economic burdens fairly without causing delays that are unacceptable from a climate-policy perspective.87

Activation of load-management potential by adapt-ing regulations in the electricity marketA comprehensive reform of the electricity market structure is required to activate demand-side flexibility (Demand Side Management DSM or Demand Response DR). Regulatory reforms must ensure that energy-intensive companies are given more comprehensive access to demand-side flexibility, that efficiency and flexibility are treated equally, that the possibilities for providing flexibility are expanded and that non-discrimi-natory access to the flexibility market is guaranteed. Furthermore, price signals must be enhanced in order to ensure that the flexible use of electricity is economically viable.88

Other measuresIn addition to the aforementioned measures, the further additional initiatives are advisable:

■ Raise awareness of climate-protection issues among bidders in public-construction tenders and address knowledge shortfalls, e.g. by offering further training for contractors and planners

■ Define progressively increasing minimum standards for cement fac - tories, similar to the approach adopted in the California Buy Clean Act89

■ Maintain research funding for the concrete and cement industry and intensify it in the field of climate protection

■ Above and beyond the climate protection aspect, resource-efficiency and sustainability grounds would recommend improving the overall position of recycled concrete. Therefore, welcome additional regulatory measures would include comprehensive recycling and a ban on the landfilling of concrete demolition waste. This would increase the importance of dismantling buildings according to type and make recycled concrete more attractive. In addition to advantages for climate protection, this would also result in a reduction in the con-sumption of resources and pave the way for a circular economy in the construction industry.

87 WWF (2009): Modell Deutschland – Klimaschutz bis 205088 Kopernikus Projekt SynErgie (Kopernikus projects for the energy transition funded by the Federal

Ministry for Education and Research). Position paper in preparation89 www.buycleancalifornia.org


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