Decoupling Emissions from Economic Activity 2022

• In 2022, emissions from Manufacture of cement and other non-metallic minerals were 6% of total greenhouse gas emissions, 0.3% of gross value added, and 0.3% of employment (See Figure 4.2 and Table 4.1).

• Greenhouse gas emissions from this sector rose from 2.5 million tonnes of carbon dioxide equivalent in 2010 to 3.6 million in 2022, a 46% increase. In the same time period, gross value added rose by 37% and employment by 17% (See Figure 4.1 and Table 4.1).

• Industrial production processes involved in cement and lime production made up 57% of emissions in 2022, while 32% came from non-transport fuel combustion, 7% from electricity consumption, and the remaining 4% from road transport fuel use (See Figure 4.3 and Table 4.2).

• Energy use in the sector increased by 57% from 2010 to 2022, with increases in fossil fuel use, renewable energy (including waste) use, and electricity consumption. The share of fossil fuels fell from 80% to 63% in the same time period while the share of renewable energy rose from 5% to 23% (see Figure 4.5 and Table 4.3).

• In 2020, 51% of cement and other non-metallic mineral products were used as inputs by the construction industry (See Figure 4.7 and Table 4.5).

Greenhouse Gas Emissions and Economic Activity in the Cement and other non-metallic Minerals Sector

Figure 4.1 shows that in the Manufacture of cement and other non-metallic minerals sector, gross value added at constant (2022) prices, employment and greenhouse gas emissions were all higher in 2022 than in 2010. Greenhouse gas emissions from this sector rose from 2.5 million tonnes of carbon dioxide equivalent in 2010 to 3.6 million in 2022, a 46% increase. In the same time period, gross value added (GVA) rose by 37% and employment by 17%.

Figure 4.2 shows the sector share of total emissions, GVA, and employment. In 2022, emissions from Cement and other non-metallic minerals were 6% of total greenhouse gas emissions, compared with 4% in 2010. The sector share of GVA and employment remained fairly steady at around 0.3% of total GVA and employment across most of the time period.

Table 4.1 shows data on levels of greenhouse gas emissions, GVA, and employment numbers for the Cement and other non-metallic minerals sector from 2010 to 2022, as well as the share of total emissions, GVA and employment. In 2022, emissions were 3.6 million tonnes of carbon dioxide equivalent, GVA was €1.3 billion, and employment in the sector was 6,685 persons.

Sources of Greenhouse Gas Emissions

Figure 4.3 shows the source of greenhouse gas emissions in the Cement and other non-metallic minerals sector in 2022. Industrial production processes involved in cement and lime production made up 57% of emissions in 2022, while 32% came from non-transport fuel combustion, 7% from electricity consumption, and the remaining 4% from road transport fuel use.

Table 4.2 shows that over half of greenhouse gas emissions in the sector were due to industrial production processes each year between 2010 and 2022, with the share rising from 53% in 2010 to 57% in 2022.

Energy Use in the Cement and other non-metallic Minerals Sector

Figure 4.4 and Table 4.3 shows energy use in the Cement and other non-metallic minerals sector, based on CSO Business Energy Use survey data. Energy use in the sector increased by 57% from 2010 to 2022, with increases in fossil fuel use, renewable energy (including waste) use, and electricity consumption. The share of fossil fuels fell from 80% to 63% in the same time period while the share of renewable energy rose from 5% to 23% (see Figure 4.5 and Table 4.3). 

Large manufacturers in the Manufacture of cement and other non-metallic minerals sector are included in the EU Emissions Trading System (ETS). In 2022, 84% of greenhouse gas emissions from this sector were included in the scheme, up from 76% in 2010 (see Table 4.4). 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. Between 2010 and 2017, free permits exceeded ETS emissions in this sector. From 2018 on, free allowances were less than ETS emissions most years. Free ETS permits in the sector fell from 4.2 million in 2010 to 2.5 million in 2022. Participants in the EU Emissions Trading Scheme are entitled to full or partial relief from carbon tax, depending on the type of fuel used.

Interactions with other NACE Sectors

Table 4.5 shows the value of final uses of products manufactured by the Cement and other non-metallic minerals sector in 2020. The construction sector accounted for 51% of the value, indicating that demand for cement for construction purposes was the main driver of demand for production in this sector. A further 25% was used by other NACE sectors and 21% was exported.