The Cement Sustainability Initiative

1. The Cement Sustainability Initiative CSI and Climate Change Michel PicardV.P. Environment Lafarge Cement makers unite against climate change COP11/MOP 1 Montreal, November 2005

2. The Cement Sustainability Initiative • A member project under the WBCSD umbrella • Initially • « Towards a sustainable cement industry »

3. The Cement Sustainability Initiative • Ash Grove Cement (USA) • Cemex (Mexico) • Cimpor (Portugal) • CRH (Ireland) • Gujarat Ambuja (India) • HeidelbergCement (Germany) • Holcim (Switzerland) • Italcementi (Italy) • Lafarge (France) • Cementos Molins (Spain) • Secil (Portugal) • Shree Cement (India) • Siam Cement (Thailand) • Taiheiyo (Japan) • Titan (Greece) • Uniland (Spain) • Votorantim (Brazil) • Initiated 1999 – Lafarge Holcim Cimpor • Now 16 companies • Incl. 9 world leading cement makers • 25 % of global cement volume • More than 50% excl. China • Operations in more than 70 countries

4. Timeline Independent Study Planning Action 1999 - 2002 2002 2002 - 2020 (1st phase 2002 – 2007) Individual implementation Joint projects + Communication and outreach

5. Joint projectsto develop : guidelines, best practices, reporting and monitoring systems Individual company actions commit to SD implement guidelines publish results Summary of the Agenda for Action (2002 –2007) In six key areas • - Climate protection • - Fuels and raw materials use • - Employee health and safety • - Emissions reduction • - Local impacts on land and communities • - Communications and progress reporting

6. CSI framework to deal with Climate Change • Joint projects • Develop common CO2 accounting and reporting protocol, • Share data on fuel properties, • Develop common KPIs • Individual company actions • Use the protocol • Set emissions targets • Report publicly company results and progress

7. Achievements • Progress report June 2005 • Protocol updated 2005 • CO2 inventories in 94 % of kilns • 3 companies publish targets + report • KPI’s developped

8. How we will measure progress • Key performance indicators • Number of facilities and percentage using the WBCSD CO2 protocol Guidelines for their emissions inventory, • Company-wide total CO2 emissions (gross and net), tonnes /year • Company-wide gross and net CO2 emissions per tonne of cementitious product

9. Current work • Streamlining of Clean Development Mechanism • Performance benchmarks • Sectoral approach

10. Sectoral approach« A cross border initiative for reducing carbon intensity in a major emitting sector » • Promotion of technology transfer • Realization of equity • Prevention of leakage • Simplifying CDM • Facilitate efforts in developing countries • Prevention of hot air

11. Cement sector • A good candidate for sectoral approach • Standardized products • Single manufacturing process • With a limited number of technologies • Agreed measurement protocol • Performance well investigated • Well documented avenues for progress • Technology available worldwide • 75 % cement is produced in developing countries • CSI willing to investigate concept further

12. Thank you !