Joint position – Feedback on Free Allocation Rules for cement (July)

Logo Joint position – Feedback on Free Allocation Rules for cement (July)

As the Alliance for Low-Carbon Cement and Concrete (ALCCC), we are committed to bring European cements within planetary boundaries, targeting a net zero value chain by 2040. Clinker is the main cause of cement emissions as it is the product’s most carbon intensive component, accounting for over 90% of the industry’s carbon footprint. The share of clinker in cement remained high and stable in Europe over the last decade (c. 75%), sitting well above the global average (c. 63%). As safe, scalable, and cost-effective low clinker cements exist today, policies urgently need to start incentivising low carbon substitute technologies which replace and reduce the volume of clinker in cement.

The ongoing review of the allocation rules of free emissions under the ETS is a key step in driving this change. As ALCCC we fully subscribe to the assessment of the European Commission, which points out that the current clinker benchmark does not incentivise clinker substitution. Therefore, we are pleased to see that several options are proposed in the concept paper to solve this longstanding issue.