2021 China Large Cement Enterprise Leaders Roundtable

Scientific carbon reduction, emphasis on reduction and strict self-discipline

Jointly promote the stability of the cement industry

Cao Jianglin, General Manager of China National Building Materials Group and Executive Chairman of China Cement Association

Dear leaders and colleagues:
I sincerely thank China Cement Association for its support to China National Building Materials Group. Thank you for your trust in me. As a cement industry practitioner, I am deeply honored to be added as the executive chairman of China Cement Association at this summit! I will earnestly fulfill my responsibilities, practice the new development concept, take the supply-side structural reform as the main line, and be an active promoter of the high-quality development of the industry.
As we all know, China National Building Materials Group has always adhered to three development concepts: first, the interests of the industry are higher than the interests of enterprises, and the interests of enterprises are bred in the interests of the industry; second, self-discipline operation, cost-benefit operation and rational competition; third, green development, open development and shared development. As a member of China National Building Materials Group and executive chairman of China Cement Association, I will always adhere to and actively advocate these ideas in the industry in the future. I put forward three suggestions on the sustainable and healthy development of the industry:

Actively promote carbon emission reduction work

The goal of "3060" carbon peak and carbon neutrality is a major issue in the cement industry. As practitioners, we should fully evaluate the impact of this goal on the industry, and promote the carbon emission reduction work of the industry from the perspective of the future of the industry. Combined with the work experience of the Global Cement and Concrete Association (GCCA) in promoting carbon emission reduction in the last three years, I would like to talk about my personal views on carbon emission reduction in the cement industry:
1. Comprehensive determination of carbon neutral targets
The target set out in the Climate Target Statement issued by GCCA on September 1, 2020: GCCA and its member companies are committed to achieving carbon neutrality in the cement and commercial mix industry by 2050. Personally, I think that the carbon neutrality target set by China's cement industry should be advanced. At the same time, the setting of this time target should also be scientific and reasonable. We can refer to GCCA's practice and scientifically coordinate the carbon emission reduction targets of cement industry and commercial mixed industry.
2. Multi-path simultaneous promotion of carbon emission reduction
First, reduce carbon. To do a good job in the research of the industrial chain, we should start from the four links of clinker, cement, concrete and construction, and adopt advanced technology and equipment and standards to promote carbon emission reduction. According to GCCA estimates, this path can reduce carbon emissions by about 35%.

Second, carbon. The use of concrete carbonization to achieve carbon emission reduction, according to GCCA estimates, the concrete in the building through the carbonization effect, can absorb about 10% of CO2 emissions, of course, the maturity of the relevant technology, measurement methods and the reliability of the results, the need for further exploration and discussion of the industry.

Third, carbon capture. To study the application and commercial transformation of applied carbon capture (CCUS) technology, although this path still has the problem of application cost, but from the 2050 time span, this kind of technology can be used as a major research direction of carbon emission reduction in the industry.

Choosing a scientific, efficient and feasible carbon emission reduction path is of great significance to the realization of the goal of carbon peak and carbon neutrality in the cement industry, which requires the joint action of the whole industry.
3. Scientific development of carbon emission reduction standards
First, the future of carbon emission reduction will undoubtedly affect the future of all enterprises in the industry, to jointly develop carbon emission reduction standards, sharing technology.

Second, in terms of standard formulation, it is necessary to fully consider the differences between different regions, establish regional standardized production lines, and thus lead the setting of carbon emission reduction standards for industries in the region, and use this as a benchmark to conduct carbon emission reduction assessments for cement companies in the region And implement relevant carbon emission reduction policies. The formulation of standards is related to the development of the industry and the future of the enterprise. It is recommended to establish regional standardized production lines in East China, South China, and Southwest China with advanced indicators as the standard and provinces as the unit. The government whose emissions from the production line are below the standard line can give the industry corresponding incentives or compensation, and those whose emissions reach the standard line can take certain punitive measures or require them to purchase emission targets.

Third, large enterprises and industry associations should actively cooperate with government departments to jointly promote the construction of the carbon trading market in the cement industry, and jointly improve the operating standards and trading norms of the carbon trading market.

Implementation of Reductive Development

At present, the industry is still overcapacity, especially in some areas, the problem of overcapacity is very prominent. If we do not grasp the new production line through technological transformation and capacity replacement, it will aggravate the overcapacity. The association and relevant large enterprises should pay more attention to the development of reduction. For this reason, the cement industry:
First, we must strictly implement the policy of reduction and replacement, and increase the proportion of reduction and replacement year by year;

Second, as soon as possible to ban off-site replacement;

Third, we must strictly control the expansion of technological transformation projects;

Fourth, we should promote the comprehensive elimination of 32.5 grade cement.

Advocate self-discipline management

Industry benefits and enterprise benefits are not only the goal of high-quality development of the industry, but also the basis of high-quality development of the industry. To advocate industry self-discipline, build industry ecology, and promote the stable and orderly development of the industry, the following three points should be done:
To strictly abide by the industrial policy, under the leadership of government departments and industry associations, large enterprises should take the lead in adhering to the off-peak production and lead the whole industry to implement the off-peak production policy in place.

The production technology, equipment and product quality of my country's cement industry have reached the world's leading level. The entire industry must jointly advocate the concept of price-cost-benefit management, follow the basic market economy value law, maintain the basic value and benefits of the industry, and avoid excessive competition and vicious competition that disrupt the market. The emergence of bad business behaviors.

As a traditional industry, the benefits of the cement industry, especially in the first quarter of this year, still have a gap compared with the new materials industry. From the perspective of the future, the production costs disclosed by the cement industry are "distorted". For example, the market reduction costs, environmental costs and resource costs that the industry needs to bear are not fully included in the cost category. The result of these accounts is that the actual benefits of the cement industry do not match the current external cognition of the benefits of the cement industry. In the future, the cement industry will face the rapid superposition of reduction costs, environmental costs and resource costs, which require the current cement industry to continue to do a good job of self-discipline. Large enterprises should take the lead and build an industry ecology.

China building materials must lead by example, under the leadership of China Cement Association, is committed to the high-quality development and sustainable development of the industry.