Case Study 1: Green Cement in Ireland and the Netherlands
Putting the D into CDM
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GGBS cement costs more to produce than conventional cement GGBS cement fetches a lower final price than conventional cement as constructors are reluctant to switch away from using traditional materials
The manufacturing plants were developed specifically because investors originally believed that carbon regulations in the EU and the Kyoto Protocol would give them an advantage in the market. In fact the regulations have not assisted at all.The manufacture of cement is one of the most significant emission GHG sources on the planet. It has a worse effect on global warming than aviation.
The project, which has two manufacturing facilities one based in the Netherlands and the other in Ireland involves the manufacture and supply of a green cement. GHG emissions are saved because the cement (GGBS cement) is manufactured from an industrial by-product - slag sourced from the iron and steel industry. This results in a significant reduction in energy use and process emissions in comparison with the manufacture of conventional cement (Portland cement). Typically the use of each tonne of GGBS Cement instead of a tonne of Portland cement results in an emission saving of around 0.8 tonnes CO2e
The emission savings created by the project cannot be considered as "business-as-usual" for a number of reasons. The project is one of the least profitable options for supplying cement in each market and financial recognition of the GHG benefits of the project are necessary for its ongoing survival; The project owner, has had to overcome barriers presented by construction norms for cement which previously prevented the use of this type of cement to manufacture concrete. This has been a lengthy and costly process.
A detailed protocol for determining and monitoring emission savings has been developed in accordance with UN guidelines. Total emission savings from the project equate to around 500,000 tonnes CO2e per annum - that is enough to offset the emissions from over 60,000 UK households.
The project has acquired formal independent approval ("Validation") of its compliance with one of the most respected standards for developing offset projects, the Voluntary Carbon Standard. The validation was performed by leading accredited entity - the SGS group - and verifies that the emission savings created by the project:
- are additional to business as usual
- can be monitored and verified
- are only being sold via one trading mechanism
- are net of any leakage emissions (such as emissions associated with the transport of raw materials and finished products to and from manufacturing facilities)