Private Sector & Development PROPARCO'S MAGAZINE
N° 10 / May 2011 Cementing the foundations of growth Michel Folliet
International Finance Corporation
2 Concrete, a solution for sustainable construction Vincent Mages and Jacques Sarrazin
Lafarge
Cement, confronting ecological responsibility and economic imperatives
6 Financing cement achieves sustainable development Philippe Guinet and Jacques van der Meer
European Investment Bank
9 Reducing cement’s CO2 footprint
The cement industry emits high levels of CO2, yet it is essential for the rapid economic development of developing countries. How can the industry curb its climate impact, and how can development institutions help it to do so? EDITORIAL BY ÉTIENNE VIARD CHIEF EXECUTIVE OFFICER OF PROPARCO
Hendrik G. van Oss
U.S. Geological Survey
12 Key data Cement in figures
16 Earthen construction, an additional way to house the planet Romain Anger, Laetitia Fontaine, Thierry Joffroy and Éric Ruiz
CRATerre-ENSAG
18 The positive impacts of a responsible cement industry Pierre-Olivier Boyer
Vicat Group
22 Curb carbon footprint and promote development: a tricky balance Guillaume Mortelier and Denis Sireyjol
Proparco
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As the 21st century gets underway, development institutions are facing a major moral dilemma. Should they be supporting a cement sector that produces such significant amounts of CO2 when their core mission is to combat climate change? It is a question that is troubling the development world, yet it must be asked and debated. It is this tricky problem that is the focus of this tenth issue of Private Sector & Development. The cement sector alone is responsible for 5% of carbon emissions resulting from human activity, a proportion that could well exceed 10% by 2050. Unfortunately there are few alternatives to this material which is available in large quantities and can rapidly fulfil the needs of developing countries. For developing economies, already producers of more than 80% of the cement sector’s carbon emissions, any restrictions imposed on cement financing would be tantamount to having their wings clipped in mid-flight. Cement is absolutely crucial to development. It allows the speedy construction of housing desperately needed by large sections of the populations of developing countries. Domestic markets are frequently hampered by limited production capacity, which results in high import levels, worsening trade balances, a lack of competition - and higher prices. Consequently, critical infrastructure and housing construction projects can be delayed or even thwarted. While the cement industry will continue to produce large quantities of CO2 for many years to come, it can nevertheless reduce its carbon footprint. To do so, it must adopt the most energy-efficient technologies and offer innovative solutions, particularly when it comes to insulating energy-intensive buildings. The increasingly rigorous criteria imposed by development institutions on cement projects can help in this regard. Most importantly, each project funded by these institutions must be carefully scrutinised to ensure that any negative effects on climate are far outweighed by the project’s positive economic impact. —