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1、 4,chemin de Conches Tel:+41(22)839 31 00 E-mail:infowbcsd.org CH 1231 Conches-Geneva Fax:+41(22)839 31 31 Web:www.wbcsd.org Switzerland VAT nr.644 905 DEDICATED TO MAKING A DIFFERENCE World Business Council for Sustainable Development HLG Ad Hoc Group 11 on International Action on Climate Change WB
2、CSD Cement Sustainability Initiative Contribution on Sectoral Approaches CSI is an Initiative first begun in 1999 by ten of the worlds largest cement companies,under the auspices of WBCSD,to pave the way for a more sustainable cement industry.18 companies representing some 40%of global cement produc
3、tion are now included.Collecting and reporting GHG emissions data is a fundamental part of this CSI initiative.During the last year,CSI companies have started to focus on scope to take a sectoral approach initiative as a proactive part of the global effort to mitigate GHG emissions.Notably,CSI membe
4、rs,Taiheiyo,Holcim and Shree Cement are active participants in the Cement Task Force of the Asia Pacific Partnership(AP6),chaired by Japan.Questions on Sectoral Approaches Which regulatory incentives work best in delivering sector wide transformation(e.g.benchmarks/targets,crediting mechanisms)?In t
5、he context of international action on climate change,sectoral approaches are essentially about setting and meeting targets related to GHG emissions what,how,when,and by whom?and incentive mechanisms that encourage meeting these targets.Fundamental to such a sectoral initiative,as the issue paper ide
6、ntifies,is sound data on a global basis,on which an environmentally effective approach must be grounded.The CSI program Getting the Numbers Right(GNR)is established for this purpose,and both approach and progress to date are outlined in the attached note.In addition to collecting GHG emissions data
7、worldwide from CSI cement company installations,the AP6 Cement Task Force has decided to use the WBCSD emissions protocol,and is supporting capacity building workshops,with significant engagement by China.WBCSD 2 The what and how of target setting needs to relate to both the extent of the global cha
8、llenge,as outlined by IPCC AR4,and specific characteristics of the cement sector.The characteristics of the cement sector include:Cement sector is energy-intensive,responsible for approximately 5%of global manmade CO2 emissions;Modern cement plants have capacities of over 1mtpa with lifetimes of 50
9、years;Majority of growth in demand for cement products is in developing countries;About half of worldwide cement production is in China(47%in 2005 and rising);IEA projects continued growth in China.Developing economies will account for nearly 80%of cement production within the next 20-30 years.Major
10、ity of emissions from cement are from chemical rather than combustion processes;The high process temperature and long residence time at 1500oC,provides a useful alternative for safe co-processing of many wastes as fuel;Other wastes(steel mill slag,fly ash)possess cementitious properties and,where le
11、gally permitted,can be blended with normal Portland cement,reducing energy intensity and CO2 emissions;Little cement is traded and transported internationally;it is a low-cost product,and the cost of land transport usually limits sales to within 300 km of the plant.Such characteristics point to impr
12、oving process efficiency and blending as the main way to mitigate CO2 emissions with current known technology,and the need to engage developing countries in a global effort to do this.As well as consistent global monitoring,reporting and verification of GHG emissions,a simple common performance metr
13、ic is needed,such as t CO2/t of cement product.This can then be used to establish consistent benchmarks of process efficiency,which in turn may be used as bases for setting appropriately differentiated efficiency targets.We can expect diverse regimes in any global framework that is agreed for post-2
14、012.Performance targets need to be both adaptable to different regulatory regimes,e.g.for targets within a continuing EU ETS cap and trade regime(perhaps efficiency-based in APEC),facilitating transparent comparison of differentiated targets in a global burden sharing regime,in which assessing compa
15、rable levels of effort becomes increasingly relevant.But targets by themselves will not be sufficient to generate the pace of change needed.Crediting mechanisms inside and going beyond the cement sector should also be used.WBCSD 3 How can carbon finance best be used to incentivize sector wide approa
16、ches?How could CDM be improved?What new mechanisms might be necessary?CSI companies are seriously considering sectoral approach to crediting opportunities,such as those proposed by CCAP,and also being studied by Ecofys.There already are several clear principles that should apply in further examining
17、 such crediting options:A global cost of carbon needs to be established,as a common reference point;Sectoral crediting will be helpful to facilitate a sectoral initiative,but it should be recognized that the role is facilitating rather than basis of the initiative itself;The sound objective of any s
18、uch crediting mechanism should be to engage and encourage developing countries to mitigate GHG emissions through efficiency;It is recognized that any crediting mechanism limited within a specific sector might compromise economic efficiency.CSI companies believe any crediting mechanism should allow f
19、ull fungibility with globally recognized GHG credits;If allowances within a sectoral crediting mechanism were limited to a specific sector,it would imply that,for example,the cement sector in Annex I Parties would be exposed to the full impact of incentives needed to encourage non-Annex I countries
20、to increase efficiency,and so mitigate GHG emissions;In the particular case of the cement sector,with about half of the worlds production and demand already in China,and those levels also still increasing significantly,a crediting mechanism limited within the cement sector could raise challenging is
21、sues.CSI companies are also exploring scope for a sectoral or programmatic approach to CDM.Implemented before 2012 this could form a powerful bridge to a more comprehensive sectoral approach post-2012.CSI companies are already starting to undertake analysis needed to develop an environmentally sound
22、 basis for such a sectoral CDM approach,which might require sectoral benchmarking(possibly with regional differentiation)as a basis for demonstrating additionality.How can governments work with industry to gather sectoral data and contribute to pilot projects?For a sectoral approach initiative to be
23、 effective it needs to have sufficient critical mass,and be recognized by and incorporated into both the global framework and local regulatory regimes.A prerequisite is to establish consistent monitoring,reporting and verification of GHG emissions.CSI companies are looking for broad governmental sup
24、port for their work to establish a consistent MRV basis,especially with capacity building in China,where half of global cement production and consumption is based.All CSI companies have now agreed to independent 3d party verification of their CO2 emissions,beginning with data collected in 2006 and r
25、eported annually from 2007.While required for the EU ETS,independent verification is still not common practice in non-EU countries.WBCSD 4 There may also be scope for an early pilot project to demonstrate a sectoral crediting mechanism between two or more developing and developed countries before 20
26、12.A sectoral initiative,combined with such a demonstration pilot project,could help in generating momentum towards a global framework agreement.What are the industry sectors where such an approach is more likely to work and where pilot projects can be implemented?What is the role of business associ
27、ations?The cement sector has relatively simple processes and products,with contractors offering common technology,and competitiveness focused on efficient operations.In addition,there is scope to use a common efficiency metric,such as t CO2/t of cement product.This makes the cement sector a prime op
28、portunity for a sectoral initiative.CSI companies are working toward a global framework for a cement sector initiative.Such a framework would then need to be implemented within national and regional regimes set up to implement commitments.Business associations will take the lead in representing the
29、interests of companies operating within their areas of responsibility in how implementation takes place,but consistent with the agreed global framework.How might a sectoral wedges initiative that defines sector more broadly(e.g.buildings)be facilitated across borders?Our initial comment is that emis
30、sions credits and offsets need to be evaluated on a life cycle basis,where one sector enables another to reduce its emissions.This is both technically and politically complex,and needs further deep analysis.Certainly the positive contribution of the cement sector to reducing emissions from the build
31、ings sector needs to be evaluated more closely on a life cycle analysis basis.Having said this,most emissions from buildings result from their operation(heating,cooling,lighting,etc.)rather than from the emissions embedded in their construction materials.Two specific issues for the cement sector:(1)
32、safe co-processing of waste as fuels should be credited toward globally reduced CO2 emissions,and this already seems likely to be happening,except perhaps in the EU.(2)Blended cement use can be broadly encouraged.It is widely used in the EU,but less widely so in North America and some other regions.