EU cement industry faces existential threat from rising imports and high energy costs
With EU cement imports surging from 2.4 million to 14.2 million tonnes since 2016 and exports halved, the industry warns of an existential threat. Leaders call for tighter carbon regulations, support for low-carbon technologies, and a robust ETS to maintain competitiveness and sovereignty.
EU cement imports have risen from 2.4 million tonnes in 2016 to 14.2 million tonnes, while exports have more than halved, turning the EU into a net importer. This shift is driven by lower energy costs in third countries, enabling cheaper, higher-emission cement production. Marcel Cobuz, chair of TITAN Group’s executive committee, warns that without a coherent long-term plan, Europe’s cement industry could become irrelevant, threatening the EU’s sovereignty in construction materials.
The European cement industry comprises two pillars: regional multinationals and small- to medium-sized family-controlled firms. Cobuz emphasizes that patient capital is crucial for investments in decarbonization. However, the main obstacle is energy costs two to three times higher than in competing regions, which hinders scaling up low-carbon cement production.
TITAN is advancing the IFESTOS project, Europe’s largest carbon-capture initiative for cement, but it requires pipeline infrastructure for CO2 transport and storage. To accelerate decarbonization, Cobuz advocates for carbon contracts for difference (CCfD) to protect early investors and a guarantee mechanism for unforeseen risks.
Regarding the EU’s Carbon Border Adjustment Mechanism (CBAM), Cobuz says it must be watertight: closing loopholes such as product classification and implementing random sampling. For export competitiveness, he calls for continued free allocation of ETS allowances on exports, consistent with WTO rules.
The European Commission’s proposed Industrial Accelerator Act (IAA) sets a 5% low-carbon target for cement in public procurement. The industry argues for 25%, similar to steel and aluminum. Cobuz warns that without measures like lower energy costs, a robust CBAM, and reinvestment of ETS revenues, the sector’s competitiveness will erode, posing a risk to EU security and sovereignty.
