Decoupling Emissions from Economic Activity 2020

Greenhouse Gas Emissions and Economic Activity of the Cement and other non-Metallic Minerals Sector

Figure 5.1 shows that gross value added at constant prices, employment and greenhouse gas emissions were all higher in 2020 than in 2010. Greenhouse gas emissions from this sector rose from 2.5 million tonnes of carbon dioxide equivalent in 2010 to 3.4 million in 2020.

Table 5.1 shows that over 50% of greenhouse gas emissions from the cement and other non-metallic minerals sector were due to industrial processes involved in cement and lime production in all years from 2010 to 2020. In 2020, 57% of emissions from this sector were due to industrial processes, 35% were from non-transport fuel combustion, 6% were from electricity consumption and 2% were from road transport fuel use. Emissions from this sector were 5.8% of total greenhouse gas emissions in 2020. 

Interactions with Other NACE Sectors

Table 5.2 shows the value of final uses of products manufactured by the cement and other non-metallic minerals sector in 2019. The construction sector accounted for 50% of the value, indicating that demand for cement for construction purposes was the main driver of demand for production in this sector. A further 31% was used by other NACE sectors and 18% was exported.

Emissions Trading Scheme

Large cement manufacturers are included in the EU Emissions Trading Scheme. In 2020, 85% of greenhouse gas emissions from this sector were included in the scheme (see Table 5.3). The scheme covers emissions from fuel combustion and from industrial processes. Participants in the scheme must obtain an emissions permit for each tonne of carbon dioxide equivalent emitted in the manufacturing plant. A certain amount of free permits are allocated to each plant while the remainder must be purchased through the scheme. Participants in the EU Emissions Trading Scheme are entitled to full or partial relief from carbon tax, depending on the type of fuel used.