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building a better future - Cemex

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WE HAVE BEEN<br />

SUCCESSFUL IN<br />

DEVELOPING PROJECTS<br />

THAT GENERATE<br />

CERTIFIED EMISSION<br />

REDUCTIONS<br />

collaborating to determine industry key performance<br />

indicators and best practices<br />

In the year 2000, the World Business Council for Sustainable<br />

Development (WBCSD) convened a group of leading cement<br />

companies and related stakeholders to identify key challenges<br />

facing the industry. One of the most critical challenges identified<br />

was the industry’s CO2 emissions, and the development of<br />

long-term actions to address them. The result of this collaboration<br />

was the formation of the WBCSD Cement Sustainability<br />

Initiative (CSI) and its Agenda for Action, published in 2002.<br />

Since then, the CSI has focused on the proactive management<br />

and communication of issues ranging from CO2 emissions and<br />

responsible fuel usage to sustainability reporting and socialimpact<br />

monitoring.<br />

As a founding member of the CSI, CEMEX has committed to<br />

monitoring and reporting greenhouse gas emissions from all<br />

its cement plants, in accordance with the CSI Cement CO2 and<br />

Energy Protocol. In 2011, the CSI released the third edition of<br />

the Protocol, introducing.<br />

• New KPIs<br />

• Updated definitions around biomass fuel content<br />

• More thorough accounting standards for on-site power<br />

generation<br />

• Greater compatibility with international carbon accounting<br />

and reporting guidelines<br />

compensation for reducing emissions<br />

CEMEX stays closely abreast of international discussions and<br />

policy developments addressing climate change and is supportive<br />

of environmental regulations that are fair and well<br />

designed. Within our key markets, a number of market-based<br />

mechanisms for emissions reduction have been established,<br />

and we are well positioned to take advantage of these opportunities.<br />

The European Union Emissions Trading System (EU<br />

ETS) and the Clean Development Mechanism (CDM) are both<br />

important platforms for emissions trading that allow us to pursue<br />

a variety of carbon-reduction projects more economically.<br />

Thus far, we have been particularly successful in developing<br />

projects that generate Certified Emission Reductions (CERs).<br />

Issued under the CDM, a provision of the Kyoto Protocol for<br />

emissions-reduction projects in developing countries, CERs<br />

can be sold on the open market or used to offset emissions.<br />

Structured in this fashion, the CDM plays an important role in<br />

supporting the sustainable development of nations with less<br />

stringent environmental regulations, by rewarding projects<br />

that go above and beyond basic efforts to manage direct emissions.<br />

CEMEX has registered eight projects under the CDM—<br />

including four additions in 2011—for a total carbon offset<br />

potential of 1.4 million tons per year. And with more than ten<br />

CDM projects in the pipeline, as well as two additional initiatives<br />

currently in validation process under the Verified Carbon<br />

Standard (VCS), CEMEX expects to make significant additional<br />

reductions to its carbon footprint in the coming years while<br />

producing valuable CO2 credits.<br />

The CSI regularly publishes aggregate data on energy<br />

consumption and CO2 emissions in our sector; for more<br />

information visit the online database or download the<br />

report “Getting the Numbers Right” at www.wbcsdcement.<br />

org/pdf/CSI%20GNR%20Report%20final_updated%20<br />

Nov11_LR.pdf<br />

Additional resources<br />

> CEMEX Position Paper on Market<br />

Mechanisms for Mitigating Climate<br />

Change<br />

> Clean Development Mechanism<br />

> IEA Cement Technology Roadmap 2009<br />

> Verified Carbon Standard<br />

> WBCSD Cement Sustainability Initiative<br />

> CSI Getting the Numbers Right:<br />

· Database<br />

· Report<br />

PROJECT YEAR CERs/YEAR<br />

EURUS Wind Farm 2007 599,571<br />

Costa Rica Alternative Fuels 2008 42,040<br />

Colombia Alternative Fuels 2008 169,565<br />

Zapotiltic Alternative Fuels 2010 47,043<br />

Egypt Alternative Fuels 2011 416,528<br />

Panama Alternative Fuels Kiln 1 2011 29,212<br />

Tepeaca Alternative Fuels 2011 103,359<br />

Merida Alternative Fuels 2011 41,513<br />

Reduction Potential (tCO2/year) 2011 1,448,831<br />

Assiut Cement Plant in Egypt<br />

increasing the use of alternative fuels<br />

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