Chinese and German experts discuss emission reduction pathways and enabling policies
From 31 October to 1 November, the Sino-German Climate Change Cooperation – NDC Implementation (NDCI) project organized a workshop on greenhouse gas emissions mitigation in the cement sector for the provinces Anhui and Sichuan as well as a site visit to two cement factories as part of the project’s efforts to support low-carbon development in the cement sector. The National Center for Climate Change Strategy and International Cooperation (NCSC) and the Anhui Provincial Academy of Eco-Environmental Science Research assisted in facilitating the two events.
As a traditionally energy-intensive and high-emission industry, the production process of cement is responsible for approximately 12%-13% of the total carbon emissions in China. Research on carbon emission reduction policy and technology for the cement industry is crucial for China to achieve its overall climate targets, and sub-national implementation plans for reducing the emission footprint of cement production are essential for carrying out China’s climate ambition thoroughly. Therefore, the project cooperates with the Anhui Provincial Academy of Eco-Environmental Science Research and Sichuan Academy of Environmental Policy and Planning to develop CO2 emission reduction pathways for the cement industry for both provinces. These will serve as roadmaps for decarbonization of the cement sector and as a basis for developing policy recommendations for local decisionmakers, integrating international best practices and lessons learned from Germany and the EU.
At the expert exchange, stakeholders and experts discussed the policy and regulatory frameworks for achieving an effective and cost-efficient decarbonization of the cement sector. It brought together national and international experts, policymakers and representatives from industry and focused on international best practices for strategies and policies for the decarbonization of the cement industry, as well as the potential of state-of-the-art technology for reducing carbon emissions.
The outcomes of the exchange will serve as the foundation of a forthcoming in-depth report prepared by the science and policy institute Climate Analytics Australia to further advance the policy debate on this crucial climate issue, which may serve as a guidance for policymakers and industry leaders to advance the transformation of the cement sector. By providing a platform for dialogue and discussion on the status quo in cement sector decarbonization in China overall and the two provinces in particular, the exchange also supported the forthcoming comprehensive reports prepared by project’s partners in Sichuan and Anhui.
Discussion of International Best Practices and Policy Lessons
An important aim of the exchange – as for the NDCI project’s work overall – was to share international best practices and lessons learned from Germany on the successful decarbonization of the cement sector with stakeholders and policymakers in China. To this end, experts from Climate Analytics Australia and Carboneer GmbH illustrated how a mix of policies and financing schemes supports the European and German cement industries in decarbonizing without threatening their economic livelihood and competitiveness. Determined targets for reducing emissions set from the top, combined with incentives and support such as funding through the EU Innovation Fund or the German Carbon Contracts for Difference-scheme, effectively encourage the cement sector and other economic actors to proactively and advantageously decarbonize. While it was emphasized that market-based mechanisms such as the EU Emissions Trading System (ETS) have not yet had a large demonstrable effect on carbon emission reduction, its revenues have been successfully employed to ease the financial burden of decarbonization for the cement industry.
A comprehensive overview of the status of low-carbon development and the challenges the Chinese cement industry faces, the development and application of low-carbon technologies, as well as the relevant policy environment was given by China Cement Association (CCA). The project partners from Anhui and Sichuan presented the status quo of their research, carried out in cooperation with GIZ, on existing and future emission and pollution reduction measures and their effects, as well as the specific challenges the two provinces currently face in accelerating low-carbon development. Each emphasized a strong commitment to emission reduction while stressing the need for a supportive policy environment, as the limited availability of financial resources and government funding support is a barrier for the transformation.
Presentations of state-of-the art technical solutions – spanning the whole spectrum of efficiency improvements, less electricity and fuel consumption, carbon capture, storage and utilization (CCUS), recycling of raw materials, and utilization of alternative fuels – were provided by experts from the German companies KHD and Thyssenkrupp Polysius. This also included a discussion of the German Circular Economy Law (Kreislaufwirtschaftsgesetz), which effectively promoted the reduction and effective utilization of waste materials in Germany and has been responsible for enabling high recycling and utilization rates since it came into force in 1994. Overall, the policy lessons-learned from Germany on how to channel financial resources, set clear and consistent targets, and promote the recycling and utilization of waste for co-processing in cement manufacturing were met with great interest of Chinese stakeholders as reference for China.
Representatives from Anhui Conch Group and Hefei Southern Cement shared their companies’ existing efforts in reducing process emissions, increasing recycling rates and piloting and employing CCUS technologies. In a final roundtable discussion, representatives from the cement industry provided their perspectives on how to successfully decarbonize the industry without endangering economic prospects.
Site Visit to Cement Factory and CCUS site
Alongside the workshop, GIZ also undertook a site visit to Wuhu Conch Cement Factory, located along the banks of the Yangtze River near Wuhu city in eastern Anhui. At this model facility, Conch Group introduced their intelligent plant showroom, unmanned driving in the nearby limestone quarry, as well as facilities for co-processing of hazardous solid waste. Participants were also introduced to an onsite CO2 storage project
At another factory, Conch Group introduced more of their CCUS efforts. Practical applications of the CO2 captured that were shown include dried ice and beer production, and most notably an automated intelligent greenhouse project utilizing CO2 as fertilizer for tomatoes onsite. While showcasing the potential of CCUS, the visit also demonstrated logistical challenges in scaling up CCUS applications and finding enough suitable customers for CO2, considering the large quantities that are emitted in the cement manufacturing process.
The workshop and site visit strengthened the understanding of practical measures for reducing emissions in a sector that is both vital for society and under strong pressure to decarbonize. A conducive policy environment is the indispensable foundation for such a transition and needed to stimulate innovation and enable the necessary investments. The exchange of views from a multitude of stakeholders provided valuable input for ongoing research and study under this project on emission reduction pathways and policy recommendations at the national and sub-national level. While the challenges in decarbonizing the cement sector are significant, it also underlined how a conducive policy environment can play an enabling role.
