CNCA Carbon Neutrality Information Package

One Bold Goal. Three Pathways. Nine Levers.

The California cement industry is committed to being a leader in reducing emissions to avoid the worst impacts of climate change. By working with policymakers, regulators, developers, engineers, architects, advocates, and others we can achieve carbon neutrality by mid-century.

Achieving this goal requires eliminating current barriers that limit what actions the industry can take and lifting restrictions on available opportunities. By working together, the industry can move forward with large-scale, long-term investments in emissions reduction.

There are three major pathways to achieve emissions reductions industry-wide, and within these pathways are nine key levers to make carbon neutrality possible. We are ready to collaborate with stakeholders throughout the cement-concrete-construction value chain, policymakers, and the public to enact a mix of statutory, regulatory and policy actions as well as public investments, to unlock a portfolio of pathways for California cement plants to reach carbon neutrality.

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Achieving Carbon Neutrality for California Cement Producers

The road to decarbonization does take time; however, we have immediate, impactful opportunities for 2021:

Invest in a promising and critical longterm technology – carbon capture, usage, and storage (CCUS).

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The most significant constraint on the industry’s ability to reach carbon neutrality is the presence of process emissions – CO2 released as a byproduct of producing clinker, the is the binding agent in cement.

Deeper reductions in the industry’s process emissions necessitate an essential role for CCUS and related infrastructure.

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CCUS offers a typical carbon capture rate upwards of 90% of process and combustion emissions.

Policymakers should implement innovation-supportive policies that catalyze public and private investment. CCUS projects are extremely capital intensive and not economically feasible without public sector financial support. Positively, these investments can be crosscutting with other industries for efficiency of scale.

Adopt Portland Limestone Cement (PLC) as a Caltrans approved material.

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PLC differs from traditional cement through increased use of limestone, reducing emissions up to 10% percent while maintaining the integrity and performance of traditional cement.

Current PLC deployment is minimal despite existing product launches and broad production capacity.

Significantly, PLC is currently not accepted for Caltrans-specified construction projects, but anticipated approval has the potential to reduce emissions from the state’s largest consumer of concrete, and has broad influence on other state, county, and city agencies.

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On a regulatory front, current state and federal policies leave significant gaps. For example, the California cap-and-trade scheme does not currently reward carbon capture.

Additionally, lengthy permitting processes make returns on industry investment unpredictable.

Policymakers should update regulations to include carbon capture and shorten permitting timelines.

Reduce combustion emissions through fuel switching, presenting an opportunity to lower emissions as well as divert materials from landfills.

• Reducing the California cement industry’s combustion emissions footprint requires a reduction in the use of traditional fossil fuels, and a switch to lower emissions alternatives. Such fuels can be used if certain statutory, and regulatory barriers are lifted.

Opportunities for Decarbonization

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