cembureau activity report

ACTIVITY REPORT 2011

CEMBUREAU - The European Cement Association based in Brussels is the representative organisation

of the cement industry in Europe. Currently, its Full Members are the national cement industry

associations and cement companies of the European Union (with the exception of Cyprus, Malta

and Slovakia) plus Norway, Switzerland and Turkey. Croatia is an Associate Member of CEMBUREAU.

The Association acts as spokesman for the cement industry before the European Union institutions and

other public authorities, and communicates the industry’s views on all issues and policy developments

with regard to technical, environmental, energy and promotional issues. Permanent dialogue is

maintained with EU institutions, international authorities and other international associations.

Serviced by a multi-national staff in Brussels and with the input from its Members via fi ve Working

Groups as well as a number of Task Forces set up on an ad hoc basis and directly reporting to the

appropriate Working Group, CEMBUREAU takes action in relation to all developments at European

level aff ecting the cement industry.

CEMBUREAU plays a signifi cant role in the world-wide promotion of cement and the ready-mix and

precast concrete industries in co-operation with Member Associations and other relevant organisations.

The Association regularly co-hosts conferences on specifi c issues aimed at improving the market

perception of the concrete industry and promoting the use of generic cement and concrete products.

In addition, the Association regularly commissions studies to evaluate specifi c issues of importance

to the industry.

Association Européennedu CimentThe EuropeanCementAssociation

Rue d’Arlon 55 – BE-1040 Bruxelles – Tel.: + 32 2 234 10 11 – Fax: + 32 2 230 47 [email protected] – www.cembureau.eu

1

A C T I V I T Y R E P O R T 2 0 1 1

TABLE OF CONTENTS

MESSAGE FROM THE CHIEF EXECUTIVE 2

THE ECONOMY

THE WORLD 4

EUROPE 6

EMISSIONS REPORTING - GNR & BEYOND 15

CONTACTS WITH EU INSTITUTIONS 17

WORKING WITH ALLIANCES 18

CEMBUREAU MAIN ISSUES 21

CEM • PROSPECTS 30

THE ENERGY MARKET 30

EVENTS 32

CEMBUREAU IT 33

CORPORATE 33

CEMBUREAU SECRETARIAT 34

CEMBUREAU ORGANISATIONAL STRUCTURE 36

MEMBERS & 44

ASSOCIATE MEMBER 47

ABBREVIATIONS GLOSSARY 48

This Activity Report is produced in-house to meet the requirements of Paragraph 6 of the CEMBUREAU Articles

2


MESSAGE FROM THE CHIEF EXECUTIVE

2011 – CEMBUREAU prepares for the future in a gloomy EU context

In 2011, the financial and economic crisis, in Europe, was aggravated by uncontrolled levels of public debt in certain Member States. The response from the EU, the IMF (International Monetary Fund) and the ECB (European Central Bank) was austerity measures which in turn contributed to worsening the economic situation, not to mention dire social consequences. The eurozone was seen in peril of imploding under the pressure of financial markets.

Voices were heard in many corners, especially in the European Parliament, calling upon the Member States to take a bold step towards a more federal Europe which would provide the needed political and fiscal, as well as economic, governance required for the monetary Union to survive in times of crisis. No such vision material-ised, however, and the EU appeared like an economic giant staggering through history, hesitating between the Community method and intergov-ernmental cooperation, plugging holes rather than running the game.

While rigour was undeniably needed, austerity is definitely not the path to growth and jobs. The lack of a common political approach made it hard to resort to truly European solutions, such as EU Bonds or Project Bonds... Austerity has taken its toll on European industry and, at various degrees in Member States, construction was badly hit. Such crises have, of course, a very detrimental effect, but they also present opportunities. Unfortunately, in 2011 a divided construction sector was not able to seize these.

Construction, with a relatively high ratio of labour intensity per € of Fixed Capital Formation, represents a relatively rapid means for generating economic activity, creating jobs and growth while, in the longer term, providing the EU with a better infrastructure. With greater concerted action, the construction sector could have aimed for and secured greater support for such projects.

Crisis funds were set up by the EU for construction projects but cash-strapped national governments could not find the matching funds needed to release EU aid. This, in addition to the lack of response from the con-struction industry, explains why this source of funding remained largely untapped. Only a fraction of the total funds available was actually allocated.

On the issues front, Climate Change remained very high on the EU agenda in 2011 but some develop-ments took place which have raised questions about the wisdom of EU policy in this field. The European Commission has en-trenched itself in an arm wrestling contest with other nations such as Brazil, China, India, Russia, the USA, and many others, when it extended the EU-ETS to CO2 emissions from international flights. Rather than consult with key partners, the Commission has po-sitioned itself on a legal high horse and thereby lost all room for manoeuvre. In the EU-ETS itself, prices of CO2 allowances fell so low as to raise doubts about the viability of the

EU-ETS. On the international scene, at the end of the year, Durban was claimed to be a victory for the EU Climate Change Policy. Let us hope it will not prove a pyrrhic victory.

Meanwhile, the regulatory machine worked at full throttle. The Guidance Documents necessary to implement the decisions on allocation of ETS allowances taken in 2010 led to complex and often heated debates in comitology. Overall, the decision made by the European Commission and the Member States did not pose fundamental problems to the cement industry with one notable exception: “rationalisation”.

3


CEMBUREAU argued that, logically, if an operator transfers production from one plant to a more efficient installation, emitting less CO2, the allowances should be re-allocated from the former to the latter in order to cover the increased production of the latter, even if the nominal capac-ity is not increased, provided always that the environmental benefit is dem-onstrated. Rather than address this logically, the European Commission has opposed the very idea of such rationalisation. Worse, the Guidance Documents provide an incentive to maintain production in existing instal-lations at at least 51% of their median historical production level, i.e. the median production in 2005 to 2008 or, where applicable, the median produc-tion in 2009 to 2010. This is bad news for Climate Change and for the future of industry. At a time when analysts stress the need for capacity rationali-sation in Europe, the European Commission is taking steps which clearly will not help Europe re-indus-trialise.

Against such a gloomy background CEMBUREAU has continued to pave the way for the future. Many new issues were tackled, ranging from Biodiversity and related offsets, Resource Efficiency and Standardisa-tion. Sustainable Construction has grown in importance on CEMBUREAU’s agenda and is a major point in the Energy Efficiency Directive proposed in 2011. The same year also saw the successful creation of a cement industry partnership under UNEP (United Nations Environment Programme) in order to cooperate with governments and other stake-holders on the development of a legally binding international instru-ment on mercury emissions which must be in place by 2013.

CEMBUREAU has also to ensure that its structure is appropriate to meet future issues and challenges. Discussions were initiated in 2011 and will continue in 2012, looking at the role of the Steering Committee, the operation of the Working Groups and, under the Resources Committee, a critical examination of CEMBUREAU finance and funding.

In 2012, these tasks and many others will rest upon the shoulders of the new Chief Executive who, no doubt, will steer CEMBUREAU through new waters as well as already opened channels. The search for a new Chief Executive was organised in 2011 and successfully completed at the end of the year. I have no doubt that Koen Coppenholle shall be successful and that, under his leadership and with an improved structure, CEMBUREAU has a very promising future.

4


THE ECONOMY

The World

World Production and Trends

In 2011, global economic growth was lower than previously expected, driven mainly by uncertainty and vulnerabili-ty in the most mature economies. The financial turmoil in Europe partly spread to other high-income and some developing countries. This pushed up borrowing costs in many parts of the world, and put pressure on stock markets. The European Union lacked the fiscal or monetary resources to bail out the banking system or stimulate demand. At the same time, capital flows to developing countries weakened sharply as investors withdrew substantial sums from developing-country markets during the second half of the year. As a result, and despite a strengthening of activity in the United States and Japan, global

growth and world trade slowed sharply. World output was estimated to have expanded by 2.7% in 2011, 6% in the developing countries and 1.6% in high-income economies1.

World cement production for 2011 is estimated at 3.6Bt, an increase of 7.6% compared to 2010. China registered an additional increase of 9.6% to 2.1Bt, a lower growth rate when compared to 14.5% the previous year. China accounted for 57.3% of the world’s total cement production, translating into an additional percentage point compared to 56.2% in 2010. Apart from China, global cement production increased by 4.9%, a lower growth rate compared to 6.2% in 2010. Among the G20 countries, results showed a net increase in the volumes of emerging economies. In aggregated terms, these countries encountered 6.7% growth year-on-year. The highest increase was registered in Indonesia, the Russian Federation and Argentina, which grew by around 14.6%, 11.3% and 11.2%, respectively. Increases in cement

production levels were also notable in Australia, India and South Africa. In contrast, the effects of the economic downturn were still visible among the majority of advanced economies where cement output recovered only partially. 2011 data for G7 countries showed some growth in the US (3.3%), whilst Japan and Canada remained slightly negative (-0.3% and -1%, respectively). Higher growth rates were registered in Germany, France and the UK, while Italy remained negative. Overall, G7 cement produc-tion rose by 6.2% in 2011.

Cement production in South America, Africa and Asia rose by 5% or more. These regions were responsible for 3%, 5% and 78% of world cement production, respectively. CEMBUREAU countries accounted for about 7% of world production whilst the EU27 Member States, contributed some 6% to global production volumes.

World cement production by region - Evolution 2001-2011Index 2001 = 100

1 World Bank, Global Economic Prospects, January 2012

(Source for all charts: CEMBUREAU)

60

90

120

150

180

210

240

270

300

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Africa America Asia CIS CEMBUREAU EU 27 Oceania

5


China 661.0 1 068.8 1 236.8 1 361.2 1 388.4 1 644.0 1 881.9 2 063.2India 102.9 142.7 159.0 170.5 183.3 186.9 213.9 223.5 eEuropean Union 225.9 248.0 264.8 271.0 251.8 201.0 190.9 195.3USA 88.9 99.3 98.2 95.5 86.3 63.9 65.5 67.7Brazil 39.4 38.7 41.4 45.9 51.6 51.7 59.1 63.9Turkey 30.0 42.8 47.4 49.3 51.4 54.0 62.7 63.4Russian Federation 28.7 48.7 54.7 59.9 53.5 44.3 50.4 56.1Japan 75.9 68.7 69.9 67.8 63.0 54.9 51.7 51.5Korea, Rep. of 52.0 47.2 49.2 52.2 51.7 50.1 47.4 48.3Saudi Arabia 20.0 26.1 27.0 30.3 37.4 37.8 42.5 e 47.0 eIndonesia 31.1 33.9 33.0 35.0 38.5 36.9 39.5 45.2Mexico 30.8 36.0 38.8 39.5 38.3 37.1 38.9 39.8 eGermany 32.1 31.0 33.6 33.4 33.6 30.4 29.9 33.5Italy 39.8 46.4 47.8 47.4 43.0 36.4 34.4 33.1France 19.1 20.9 22.0 22.1 21.2 18.1 18.0 19.4Canada 12.1 13.5 14.3 15.1 13.7 11.0 12.4 12.3 eArgentina 5.5 7.6 8.9 9.6 9.7 9.4 10.4 11.6South Africa * 8.4 12.1 13.1 13.7 13.4 11.8 10.9 11.2Australia 6.8 9.1 9.2 9.5 9.7 8.7 9.1 9.6 eUnited Kingdom 11.9 11.6 12.1 12.6 10.5 7.8 7.9 8.3

Main world producers - The G-20 Group

Cement production° (Million tonnes)

Notes: ° Cement production including cement produced with imported clinker p: Preliminary – e: Estimation – *: Estimation including cementitious

Country 2001 2005 2006 2007 2008 2009 2010

World cement production 2011, by region and main countries3.6 billion tonnes

* Including EU27 countries not members of CEMBUREAU

2011 p

China57.3%

Japan1.4%

India6.2%

Asia (excl. China,India, Japan)

12.9%

Africa4.7%

USA1.9%

America (excl. USA)5.2%

CIS2.5%

CEMBUREAU7.3%

Europe (excl. CEMBUREAU)*

0.3%

Oceania0.3%

6


Europe

Compared to 2010, 2011 cement production in the CEMBUREAU coun-tries showed a slight increase of 2% to 263 million tonnes. A general positive trend was registered in Central, Northern and Western European countries, while a majority of Southern European countries performed nega-tively. Nineteen out of twenty-eight CEMBUREAU member countries expe-rienced a positive trend, of which twelve showed double-digit growth in production volumes. In contrast, seven countries still registered a decline of more than -5%. If all EU27 countries are taken into consideration, produc-tion rose by 2.3%, to 195.3 million

tonnes, thus showing the first signs of recovery since the impact of the global economic crisis in 2008.

Total 2011 clinker and cement exports from the CEMBUREAU member countries fell by 11.6%, to about 45 million tonnes, whereas imports rose by 3.7%, to approximately 23 million tonnes. In 2011, clinker represented 19.6% of total export flows and 18.7% of total import flows.

Signs of recovery were felt in the majority of national markets. National sales volumes increased by 3.8% and 1.9% in the CEMBUREAU and EU27 countries respectively.

Domestic demand followed accord-ingly. Cement consumption grew compared to 2010 in the majority of the CEMBUREAU countries, nineteen of which experienced positive growth rates. However, the impact of the economic crisis was still felt in Eastern and Southern Europe, with nine countries registering a drop in cement consumption, including some of more than 10%. Taking into account all EU27 countries, consumption fell in eleven and grew in sixteen countries.

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Note: Cement production includes cement produced with imported clinker

Cement production in CEMBUREAU and EU27 countriesMillion tonnes

CEMBUREAU

EU27

Var 2011/2010

+2.3%

Var 2011/2010

+2%

7


Country by country analysis - 2011

AUSTRIAAfter the recession years, the Austrian economy began to see the light at the end of the tunnel: GDP grew by +3.1% in 2011; investments picked up leading, to a minor improvement in the construction sector. Domestic cement deliveries, however, remained just below 2010 levels. In 2011, the overall Austrian construction output amounted to € 13.4 billion, an increase of 2.8% compared to 2010. Residential construction was up by +5%, non- residential by +13.5%. Renovation increased by +5.8% while industrial and civil engineering went up by +12.4%. Regarding infrastructure, water engineering went up by +10.2% but underground engineering and other civil engineering fell by -3.6% mostly due to a reduction of invest-ment in tunnels (-23.1%) and railways (-15.1%).

Future trends: Further to the upturn of GDP in 2011, a number of private as well as public projects were resumed after having been stopped during the recession. Due to the emphasis on energy efficiency, renovation will remain a growing market. Further to the economic and financial difficulties in the Euro-zone, the Austrian national bank has revised its GDP forecast for 2012 down to +0.7%. A GDP growth of +1.9% is expected for 2013 which should lead to some growth in the construction sector.

BELGIUMDespite the consequences of the international crisis, the Belgian construction industry developed positively in 2011. Construction sector output grew by +3.1%, compared to 2010 partly due to very favourable climatic conditions. Whilst activity in the non-residential sector increased only slightly (+1%), the residential sector experienced a decline of -2.8% in housing investment. Public works performed best, with a leap of +10.5%

compared to 2010, most of which being new construction (+12%) as opposed to renovation (+4%). Cement consumption increased by +12.5%, a surprise given the limited growth of construction in general. Future trends: Forecasts are less favourable for 2012, as 20% fewer building permits were issued in 2011 compared to 2010. Compared with 2011, construction sector activity is likely to slow down. Indeed, the generalised economic crisis will probably urge companies and the private sector to invest cautiously, whilst austerity programmes (with-drawal of tax benefits for energy savings and the ongoing crisis in the banking sector) could force authorities to cut public spending on infrastruc-ture.

BULGARIAIn 2011, the cement market remained, to a high degree, at 2010 levels. High interest rates on loans from private banks resulted in low levels of private investment in the residential sector. Thus, the private construction sector did not regain any ground. Some posi-tive developments were registered in public infrastructure projects, mainly roads. However, the impact of these projects on cement consumption was low.

Future trends: The market is expected to fall a further -4 to -5% in 2012. This will depend on the level of imports from neighbouring countries and the government’s efforts to speed up public infrastructure projects.

CROATIA2011 consumption continued to fall due to the country’s economic crisis and financial problems. The construc-tion sector was, as a result, heavily affected.

Future trends: The number of building permits continued to drop. The first recovery signs are not expected before 2013.

CZECH REPUBLICIn 2011, output from construction fell by -3.1%, year-on-year, and by -10.8% compared to 2008 (a year which regis-tered a construction boom). The plan-ning and building control authorities granted +1.4% more building permits, year-on-year, although the approxi-mate value of permitted constructions dropped by -14.8%, compared to the previous year. The total value of newly received construction orders in the Czech Republic decreased by -12.2%. In 2011, the number of started dwellings was -2.1% lower than in 2010 and the number of completed dwellings plummeted by -21.4%, year-on-year.

Future trends: 2012 cement consump-tion is expected to either stagnate or increase slightly.

DENMARKConstruction and building activity improved in 2011 compared to the historically low level in 2010. This increase was positively affected, to a certain extent, by publicly funded growth initiatives, particularly in relation to infrastructure and social housing, and a milder winter com-pared to the previous year.

Future trends: 2012 volumes are expected to increase marginally based on public-sector growth activities and other political initiatives aimed at kick-starting the sector. Although a decline in the residential building segment is expected in 2012 and 2013, the commercial building segment is forecast to remain at the historically low level of 2011.

8


ESTONIAThe building volumes of Estonian construction enterprises (both nation-ally and abroad) grew by +26% year-on-year during the 3rd quarter of 2011, according to the statistical office ‘Eesti Statistika’. Infrastructure construction volumes increased by +15% year-on-year, whilst that of buildings grew by +36%. Construction volumes have registered growth during the first half of 2011. At the same time, absolute volumes remain at low levels due to the low compari-son year of 2010. The share of new residential buildings has decreased. The growth is mostly due to the renovation sector. It is for this reason that 2011 sales of insulation materials, dry mortars etc. were better compared to other construction materials. The main contributors to cement, aggregate and ready-mix concrete sales were EU-backed infrastructure projects. The sale of concrete elements was also supported by exports to other EU countries.

Future trends: Construction volumes, which have been declining since the beginning of 2008, returned to growth in Q1 2012. According to Eesti Statistika, whilst the share of new buildings has decreased in terms of total volumes, this growth is mostly due to renovation and refurbishing works. These are largely supported by energy efficiency schemes, such as programmes which are financed by the sale of unused CO2 allowances.

FINLANDOverall, construction grew by +8% compared to 2010. Building construc-tion grew by some +11% and special-ised construction by +8%. Civil engi-neering continued its negative trend from 2010, falling by -2%. However, a positive trend was registered as of Q3-Q4/2011.

Future trends: In 2012, economic uncertainty remains in all construction sectors. A moderate growth is expect-ed for residential construction. Civil engineering is due to remain stable

and non-residential construction is expected to fall by a few percentage points.

FRANCEFrench cement consumption regis-tered a return to growth in 2011, following a decline of -21% as a result of the economic crisis. French GDP growth was also positive in 2011: +1.7%, but still too weak to be consi-dered as a true return to economic growth. 2011 activity in the different sectors evolved as follows: residential construction increased by +5%, non-residential construction fell by -1%, renovation increased by +1%, and civil engineering by +5%.

Future trends: So far, the evolution by sector for 2012 indicates a -2.2% fall in residential construction, -2.2% in non-residential construction, -1.7% in renovation, and -1% in civil engineer-ing. The outlook for cement consump-tion in France indicates a limited decline, while GDP is expected to grow by +0.2%.

CEMBUREAU Trade 1977-2011Million tonnes

Note: Exports and imports including intra-trade flows between CEMBUREAU countries

Exports (cement and clinker)

Imports (cement and clinker)

0

10

20

30

40

50

60

9


GERMANYConstruction activity in Germany increased by +12.5% in 2011. All sectors were able to benefit from the recovery of the German economy. In addition, some special effects were noted due to exceptionally mild weather conditions during the first and fourth quarters. The residential sector increased by approximately +25% (order entries) in 2011, while the non-residential sector developed heterogeneously. Although demand for office buildings still remained at a very low level, orders from manufacturers and industry increased. The number of building permits in this sector increased by +18%. Activity in the civil engineering sector was stable.

Future trends: In 2012, cement con-sumption is expected to remain at the level of the previous year. The residen-tial construction sector will still benefit from the low interest rates which are supporting investments in real estate. The non-residential sector is expected to profit from the ongoing growth of the German economy, even if the dynamics decelerate. Public invest-ments are expected to decrease. The civil engineering sector will be significantly below the level of the previous years with increasing risks for the future.

GREECEConstruction activity continued its steep decline in 2011. Provisional data from the Statistics Authority indicates a decrease of approximately -37% in volume and almost -41% in surface. Cement consumption fell accordingly. Total construction volumes were down by -37%. Private sector volumes fell by -36%.

Future trends: An additional signifi-cant decrease is expected for 2012, linked to austerity measures.

HUNGARYThe decline in construction sector volumes, which started in 2006, con-tinued in 2011 with a -7.8% decrease in output, year-on-year. Performance fell in both the main construction groups. Building construction was -11.3% lower compared to the previ-ous year, as a result of a significant fall in home construction and the lack of large projects. Civil engineering works dropped by -3.8%. This was largely due to the extremely low base of the previous year, as well as construction activity in the road and railway sectors during the second half of the year.

Future trends: The fall in construction output might come to an end in 2012 and there could be a return to growth in 2013 (at the earliest). In 2012, cement consumption is expected to remain at the same level as the previous year.

IRELANDThe change in volume of construction output in 2011 compared to 2010 was as follows: -17% in the building and construction sector as a whole, -11% in the building sector (excluding civil engineering), -21% in the residential building sector, -3% in non-residential building sector, and -27% in the civil engineering sector.

Future trends: Construction output is forecast to continue to fall in 2012 but by less than in previous years. This will lead to a further decline in cement consumption. Government spending is severely curtailed by weak govern-ment finances. The level of private investment in construction seems to be stabilising somewhat, but at a low level. The private commercial and residential property markets may see a slight increase in activity in 2012.

ITALYIn 2011, Italian cement consumption registered a small slowdown com-pared to 2010, following a major decrease in 2010. The analysis by type of construction activity shows an overall decrease which has affected all sectors. In particular, residential construction activities decreased by -2.9%, whilst output in civil engineer-ing works decreased by -10.5% and non-residential construction by -6%.

Future trends: Forecasts for 2012 Italian cement consumption point to a significant further decrease.

LATVIAIn 2011, economic growth was strong-er than expected, with GDP registering a growth of +6%, boosted by export-ing sectors and their investments, as well as by household consumption. The rapid increase in cement demand is mostly explained by higher exports of construction materials by manufac-turing companies. (Source: Swedbank Macro Outlook Jan'2012)

Future trends: Demand for new housing remains weak with house-holds being cautious before undertak-ing long-term liabilities. The existing stock of already built, but still unsold, real estate will continue to undermine new residential construction. Much of the new investment activity in the residential sector is not expected to materialise, although there is potential for growth in the supply of premium-class dwellings. In turn, commercial real estate construction will mainly continue to be driven by exporting sectors, in areas such as industrial buildings, warehouses and by energy efficiency. Accordingly, 2012 growth in cement consumption is expected to stabilise at mild levels. (Source: Swedbank Macro Outlook Jan'2012)

10


LITHUANIAIn 2011, 5 100 dwellings were built in Lithuania, +38% more than in 2010. In 2011, the construction of individual houses continued to dominate the market (3 800, translating into 75% of all new dwellings) compared to 1 300 apartments (accounting for 25% of the market share). The majority of these dwellings were built in the capital, Vilnius. Compared to 2010, construc-tion works increased by +18 %, but will still remain at 56% of construction works carried out in 2008. The increase of Lithuanian exports in 2011 was one of the fastest in the European Union. In 2011, goods exports grew by +28.8%, compared with the same period in 2010. In 2011, GDP grew by +5.8% - the highest growth rate registered over the past three years.

Future trends: Growth in the volume of cement sales in the 2012 domestic market is related to the construction of individual houses and an increase in orders in the infrastructure sector. According to data from the Lithuanian Department of Statistics, exports of goods and GDP should continue to grow (by approximately +5%) in 2012.

LUXEMBOURGAn overall growth of +1.6% in GDP was recorded in 2011. The construction sector in general performed slightly better than the previous year, with the same slightly positive impact on cement consumption. No reliable data is available regarding sub sectoral performances.

Future trends: A GDP growth of +2% is forecast for 2012. A slight decrease in cement consumption is, however, expected due mainly to the fact that, in 2011, some important civil engineering projects came to an end. Civil engineering activity remains under pressure in 2012. Building activity is expected to remain, at best, at the level of the previous year.

NETHERLANDSAn increase in cement consumption of +9,2% was registered in 2011, mainly due to a milder winter, compared with 2010 (when there were two winter periods in one year). The new residen-tial buildings sector remained on the low side at around 56 000 units.

Future trends: 2012 cement consump-tion is expected to decrease by approximately -7% and return to 2010 levels, due to a period of reces-sion having been registered since October 2011. Potential buyers of new builds continue to wait for government decisions regarding tax relief on mortgages. Consumer trust is lower than in 2009.

NORWAYStrong growth was registered in 2011 cement consumption. Positive devel-opments were noted, particularly in relation to residential construction and infrastructure projects in certain regions. Increased activity was record-ed in all segments.

Future trends: Continued growth in the construction market is expected for 2012, particularly in relation to civil engineering.

POLANDIn 2011, GDP grew by +4.3%. The construction activity was sustained by infrastructure works in particular as part of the Polish highways programme and the new infrastruc-ture for the Euro 2012 football championship. As a result, cement sales reached 18.7Mt i.e. an increase of +21% compared to 2010.

Future trends: In 2012, the cement market should prosper in Poland. Forecasts indicate sales of 18.1Mt. The market is expected to fall in 2013 with sales attaining approximately 16.8Mt, i.e. -7% lower than in 2012. The main reason for this decrease will be lower economic activity in the

road construction sector. Railways and electricity infrastructures should continue to develop steadily. GDP growth in 2012 will reach +2.9%, therefore lower than in 2011 when it was +4.3%. This decrease is mainly an effect of the worsening economic situation in the European Union and a bad sentiment in the Polish economy. The poor job market situation and an inflation level of 4%, which is higher than central bank targets, will be the main barriers for growth. High uncertainty remains for the economy in 2013 – GDP growth should attain +3.2%.

PORTUGAL2011 GDP is estimated to have fallen by -1.6%. This contraction in economic activity reflects a significant decrease in domestic demand, both public and private, within a framework of adjustment of basic macroeconomic imbalances. The sharp contraction in domestic demand is accompanied by significant growth in exports which, however, is not sufficient to offset the impact in the adjustment of domestic demand levels by resident agents within a framework of private sector deleveraging and fiscal consolidation. The annual volume variation in rela-tion to construction is as follows: a decrease of -5% in civil engineering and -13.1% in buildings (-17% for residential buildings; -8.5% for non residential buildings). In total, the construction sector registered a fall of -9.4%.

Future trends: Published projections reveal an unprecedented contraction of economic activity. They point to a contraction of the Portuguese economy in 2011 and 2012, followed by a virtual stagnation in 2013. Economic activity is expected to contract more severely in 2012 (-3.1%), stemming from the revaluation of the decline in domestic demand and the budgetary consolidation measures included in the 2012 State Budget. Construction activities are expected

11


to decrease by approximately -11.5% in 2012. Neither the civil engineering sector (-10%) nor the different building segments (-12.9%) have positive prospects. Both residential and non-residential buildings are expected to decrease by -17% and -8.6% in 2012, respectively. Cement consumption is expected to fall further, as a result of the consolidation measures to meet the demanding fiscal targets for the coming years and the tighter financing conditions. The Portuguese government’s request for financial assistance from the International Monetary Fund and the European Union led to an Economic and Financial Assistance Programme (EFAP), in which the Portuguese government pledged to adopt adjust-ment measures to address macroeco-nomic imbalances and structural reforms.

ROMANIA2011 is the first year since the crisis began that an increase both in cement production and cement consumption was recorded. In 2011, compared with 2010, the volume of construction works rose by +2.8%. New construc-tion works increased by +2.5%, and capital repair works by +10.3%. The maintenance and repair sector decreased by -0.7%. In relation to the type of construction, the volume of construction works increased in non-residential buildings by +6.3% and engineering works by +2.6%. The residential buildings sector decreased by -2.3%.

Future trends: The crisis in the con-struction industry has not disappeared as yet. Therefore, the real estate market remains blocked and difficulties in gaining access to credit for potential new investments linger on. If, however, the government continues the infra-structural projects started in 2011, these will have an immediate impact, particularly upon the cement sector. Therefore, estimates indicate that, in 2012, the cement market will grow by +2 to +3% compared to 2011.

SLOVENIAThe construction industry has regis-tered a dramatic decrease over the past three years. Following a -21% fall in 2009 and -17% in 2010, 2011 activity fell by more than -25%. The largest drop was observed in the non-residential building sector which stood at almost -41% below the previous year. In residential construc-tion, the volume decreased by -35%. The fall in the engineering segment was only -15%. The biggest problems in construction continue to be the lack of public orders, problems with payments and the over-indebtedness of companies.

Future trends: When taking into consideration forecasts and the number of building permits issued, it is expected that the crisis will continue in 2012 in the construction sector. Further declines in construction activity of around -5% are forecast. Consequently, a -4% decrease in cement consumption in comparison to 2011 is likely.

SPAINCement consumption fell by -17% during 2011. However, this fall intensified throughout the year, reaching a level of -27% in the fourth quarter. The distribution of cement consumption by different construc-tion sectors was: -19% in residential, -17% in non-residential and -64% in civil engineering.

Future trends: The current economic situation in Spain, with the govern-ment limitations on investments in public works, high levels of unemploy-ment and the current difficulties faced by the private sector in obtaining bank loans, will be reflected in a further decline in construction activity and cement consumption. The biggest decline in 2012 cement consumption is expected to be in civil engineering.

12


SWEDENStrong growth was registered in cement consumption in 2011. Positive developments were related, in particular, to residential construction and infrastructure projects. Increased activity was noted in all segments.

Future trends: Cement consumption is expected to remain at the same high level as in 2011. Continued growth in the construction market is expected in 2012, in particular related to civil engineering and non-residential works.

SWITZERLANDCement consumption increased by some +2.3%. The main driver is the housing sector. Based on a provisional estimation from the Federal Office for Statistics, in total, the construction sector increased by roughly +5% in 2011. Private housing accounted for some +47%.

Future trends: For 2012, however, cement consumption is likely to decrease by -3 to -5%. A further slight decrease is forecast for 2013.

TURKEYIn 2011, the Turkish economy grew by +8.5%. During this period, the construction sector also registered a growth of +11.2%. The cement indus-try holds a special position in the Turkish economy with a turnover of US$4 billion, US$900 million in exports and the fact that it provides direct and indirect employment for 15 000 people. The industry produced about 68Mt of cement in 2011, compared to 66.2Mt in 2010. Domestic sales grew by 11% in Turkey (9% in relation to TCMA members). At the end of 2011, 12Mt of cement and 2.4Mt of clinker were exported, a decrease of -23% and -11% respectively, compared to the previous year. Although this decline was mainly the result of the situation in foreign markets, an increase in Turkish consumption softened the negative effects of this decrease. The cement industry developed new export markets, given the narrowing European markets due to the global financial crisis. Western Africa is showing remarkable progress. With the installation of new capacity, at the end of 2011, Turkey had a clinker production capacity of 65.1Mt.

Future trends: In Turkey, which has considerable infrastructure and housing gaps, the construction industry has a more promising future. Forecasts indicate that domestic cement demand will grow by around +4-5% in 2012.

UNITED KINGDOMUK construction output recorded an overall growth of +1.8% in 2011 but the deterioration in UK industry conditions over the last months affected all sectors. A public sector fall of -2.2% was outweighed by a private sector growth of +4.2%. About two-thirds of construction output is private sector. Of this, private housing (including repair, maintenance and improvement - RM&I) output rose +3% and public housing fell -3%. Non-housing construction total new work, excluding RM&I, rose +0.8% whereby infrastructure rose by +9.7% but industrial fell by -8.1%. About half of the non-housing total new work is commercial and this remained flat for 2011.

Future trends: A fall by around -5% in construction output is expected for 2012, largely attributable to the low level of housing starts and public sector construction work, which is set to fall by -18% between 2011 and 2014. On the positive side, private sector construction work is anticipated to rise by +14%, with additional very large increases anticipated for rail, where a new high-speed route has been announced, and energy, where it is required to meet anticipated demand.

13


Construction in Europe* - Main activities 2011Billion euro: 1 336.5

New residential17.9%

Residential R&M26.3%

New non-residential17.2%

Non-residential R&M15%

Civil engineering R&M8.2%

New civil engineering

15.5%

Renovation & Modernisation (R&M)

49.5%

* EU27 countries (excl. Cyprus, Greece, Luxembourg & Malta) plus Norway and Switzerland

Source: EUROCONSTRUCT, VTT, Buildecon

14


Evolution of cement consumption in CEMBUREAU countriesVar 2011/2010

Spain

Portugal

France

United Kingdom

Ireland

Belgium

Luxembourg

Netherlands

Italy

Norway

Sweden

Finland

Germany

Switzerland

Estonia

Latvia

Lithuania

Poland

Czech Rep.

Austria

Slovenia

Croatia

Hungary

Romania

Bulgaria

Denmark

Greecen.a.

Turkey

n.a.: not available

: Increase : Decrease

15


EMISSIONS REPORTING - GNR & BEYOND

Releases from cement kilns originate from the physical and chemical reactions of the raw materials and from the combustion of fuels. The main constituents of the exhaust gases of a cement kiln are nitrogen from the combustion air, carbon dioxide (CO2) from calcination and combustion, water from the combustion process and the raw material and excess oxygen. The exhaust gases also contain small quantities of dust, sulphur dioxide (SO2) and nitrogen oxides (NOX), among others.

In 2007, CEMBUREAU took part in the WBCSD1 Cement Sustainability Initiative’s “Getting the Numbers Right” (GNR), aiming at monitoring and addressing CO2 emissions trends of the cement industry at global level. CEMBUREAU has actively participated in the GNR Management Committee ever since.

GNR is a CO2 and energy performance information system, based on emis-sions data from individual cement installations. The system gathers information on each factor or lever that impacts CO2 emissions and energy efficiency, including: average thermal efficiency per tonne of clinker, substitution of conventional fuels by alternative fossil fuels and biomass.

The information contained in the system represents some 30% of world-wide cement production (some 50% without China). Separate reports for the EU27 and CEMBUREAU regions are available, including information from 327 installations and representing some 98% of total EU cement production.

As a result of the GNR, the European cement industry has been able to demonstrate a significant decoupling of economic performance and absolute CO2 emissions over time. While cement production in the EU27 region decreased by 16% from 1990 to 2010, the absolute net CO2 emissions decreased by 30%.

GNR reports are available online and can be consulted from here: http://www.wbcsdcement.org/index.php?option=com_content&task=view&id=57&Itemid=118

Since 2010, CEMBUREAU has extended its statistical system, beyond GNR, to other key pollutants emitted during the clinker burning process, including dust, NOX and SO2. It includes emission values collected for 295 kilns from CEMBUREAU member countries for the years 2000, 2005, 2008 and 2009. The following concentra-tion graphs, expressed in mg/Nm³, provide up-to-date information on dust, nitrogen oxides (NOX) and sulphur dioxide (SO2) emissions of cement kilns for the European cement industry.

Note:

All measured values related to dry gas under standard conditions: Temperature 273° K, pressure 101.3 kPa and oxygen content of 10%. Measurements were provided as annual arithmetic averages.Measurements with values lower than the detection limit were reported as one half of the detection limit.

1 World Business Council for Sustainable Development

16


Dust Emissions - Continuous - 2009

0

12

24

36

48

60

72

84

96

108

120

0 50 100 150 200 250 300 350

mg

/Nm

³

Stats for year 2009Nb Kilns: 282

Unit: mg/Nm3

Average: 7.5P10: 0.8P50: 5.3P90: 18.0

DUST

NITROGEN OXIDES - NOX


Unit: mg/Nm3

Average: 639.0P10: 316.1P50: 593.8P90: 997.9

NOX Emissions - Continuous - 2009

0

250

500

750

1 000

1 250

1 500

1 750

2 000

2 250

2 500

0 50 100 150 200 250 300 350

mg

/Nm

³

SULPHUR DIOXIDE - SO2

SO2 Emissions - Continuous - 2009


Unit: mg/Nm3

Average: 119.9P10: 2.0P50: 35.8P90: 336.2

0

120

240

360

480

600

720

840

960

1 080

1 200

0 50 100 150 200 250 300 350

mg

/Nm

³

17


CONTACTS WITH EU INSTITUTIONS

Contacts with EU institutions are a regular feature of the work carried out by CEMBUREAU. In 2011, regular contacts were maintained with the European Commission, especially with DG Enterprise, DG Climate Action, DG Environment, DG Energy, DG Competition and DG Employment, Social Affairs & Inclusion in relation to a broad range of issues tackled by the Association.

In 2011, contacts with Member States through the CEMBUREAU Members Plenary Group (MPG) and the Senior Advisory Group (SAG) of public affairs specialists, were very intense and significant, especiall when the EU-ETS Allocation Guidance Documents were discussed in comitology. As always, such contacts led to frank and open discussions with the European Commission, even though often views were not completely aligned.

The contribution from trade associa-tions to the democratic process must not be overlooked or underestimated. They bring to the Commission the knowledge required to make mean-ingful and, hopefully, realistic propos-als. This role is even more essential in the European Parliament where Members of the European Parliament (MEPs) do not have at hand as an extensive scientific, technical and research service as the European Commission’s.

It is, therefore, with total dismay that CEMBUREAU, like other trade associations, have learned the decision of the European Parliament to restrict access rights even for organisations which, like CEMBUREAU, are registered on the EU Transparency Register (see below). The restriction of access rights will result in contacts being more difficult, the exchange of information poorer and will make MEPs’ and their assistants’ work less productive as too much time will be devoted to processing visitors. CEMBUREAU co-signed with the other members of ACEI (Alliance for a Competitive European Industry) a letter to the President of the European Parliament asking for a more reasona-ble solution but this has proved to be of no avail.

Some observers of the European scene have written, not without reason, that democratic decisions are being hijacked. The new comitology process installed by the Lisbon Treaty and a more difficult access to MEPs tend to support their claim.

CEMBUREAU registration under “Transparency Register” system

When, at the end of June 2011, a common register was established by the European Commission and the European Parliament, CEMBUREAU registered. CEMBUREAU is registered under n° 93987316076-63 and dis-closes the information required.

It is estimated that lobbying activities represent altogether 10% of the total CEMBUREAU budget which amounted to around €450k in 2011.

18


WORKING WITH ALLIANCES

CEMBUREAU is a key player in the mostly Brussels based scene of European Trade Associations.CEMBUREAU interacts regularly with a number of these associations, often joining forces in order to achieve a common goal.

The ECP (European Concrete Platform) is a European association incorporated as a non-profit association under Belgian law. With its membership comprising BIBM (European Fede-ration for Precast Concrete), CEMBUREAU, EFCA (European Fede-ration of Concrete Admixtures Associations), and ERMCO (European Ready Mixed Concrete Organisation), the ECP covers concrete related issues, including the energy performance of buildings, fire safety and Eurocodes.

In June 2011, Jean-Paul Méric, the former President of CEMBUREAU, was unanimously elected President of the ECP for a two-year term.

The Common Language project con-tinued to evolve in 2011. This joint project between the ECP and the Architects Council of Europe (ACE) gathers together new concepts, phrases, terms and expressions currently being used within the field of sustainable construction. In addi-tion, cooperation on this project was enhanced with the European Economic and Social Committee (EESC), who completed the translation of the original glossary into all the official languages of the European Union in 2011. In April, the English, French, German and Spanish versions were published in an illustrated book and launched during the EU’s Sustainable Energy Week at an event held on the EESC premises.

In September, the PDF versions of all the other languages were made avail-able for download from the websites of ACE, CEMBUREAU, ECP and EESC. At the end of the year, work began on the creation of an interactive online data-base containing the original glossary and all other language versions. This will be launched during 2012. CEMBUREAU and its Members should ensure that, in all their communica-tions, the “common language” is used.

In October 2011, the ECP continued its work on promoting the numerous benefits of concrete via its participa-tion in the 2011 World Sustainable Building Conference held in Helsinki (from 18 – 21 October 2011). Participants attending this global event were able to learn more about the benefits of concrete structures, as well as the role of the ECP, thanks to the presence of the Association in the exhibition area.

The ECP’s Fire Safety Task Force contin-ued to monitor fire issues in the main standardisation bodies. The Platform is represented in ISO/TC 92 (Fire Safety) and Eurocodes (CEN/TC 250).

The ECP Health, Safety and the Environment Task Force closely moni-tored the development of the proposal for a Council Directive, revising the EU rules for the protection of workers and the general public from ionising radiations1. The proposal was pre-sented by the European Commission on 29 September 2011. The ECP then developed an interpretation document for its members. The Task Force also prepared the development of the dossier of information justifying the classification of concrete into technical classes for the potential release of regulated dangerous substances without further-testing (WFT) by the producer. Work on this issue will commence in 2012. In addition, the Task Force monitored

and discussed developments related to drinking water and of End-of-Waste criteria for aggregates.

Within the context of the Environmental Product Declarations (EPDs) for construction products, CEMBUREAU chaired the Steering Committee of the project carried out by the University of Dundee on the development of an indicator on the sustainable use of natural resources. EPDs will contain a number of indica-tors, including one linked to resource use. This indicator should be fair to all materials and products, transparent and understandable to users.

In addition, the ECP remained an active member of the European Construction Forum (ECF) and decided to join CEPMC (Council of European Producers of Materials for Construction) as a full member.

BUSINESSEUROPE is the Confederation of National Employers Federations throughout Europe. CEMBUREAU remained active in several of its working groups throughout the year, including its one on Climate Change and the Environment, as well as Sustainability and the Industrial Emissions Directive (IED) Task Force.

With the entry into force of the Industrial Emissions Directive2, the IED Task Force played a role in pulling together industry views on the new procedure for the exchange of information. A letter from the IED Task Force to the European Commission stating its opposition to deriving Best Available Technique (BAT) Conclusions from the Cement BAT Reference Document (BREF) was of particular importance to CEMBUREAU.

1 Proposal for a Council Directive laying down basic safety standards for protection against the dangers arising from exposure to ionising radiation, COM(2011)5932 Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control), OJ EU

OJ L 334, 17.12.2010

19


CEMBUREAU, BUSINESSEUROPE and some sectoral organisations form part of the ACEI (Alliance for a Competitive European Industry). ACEI work concentrates on the Impact Assessment of EU policies and regula-tions and, more broadly, on better regulation. In 2011, ACEI discussed the Roadmap 20503 proposed by the European Commission and comment-ed in support of BUSINESSEUROPE’s and the Alliance of Energy Intensive Industries’ positions. ACEI also wrote to the President of the European Parliament to protest against the unjustified restriction of access to Parliament. More generally, competi-tiveness of the European manufactur-ing industry remained the main priority.

The AEII (Alliance of Energy Intensive Industries), representing alloys, cement, ceramics, chlor-alkali, ex-panded clay, glass, iron and steel, lime, non-ferrous metals, and paper indus-tries, remained very active in 2011, focussing on the Roadmap to a Competitive Low Carbon Economy by 20504. In this respect, the AEII advo-cated its position on issues including the possible move beyond the 20% greenhouse gas emission reduction target, the manufacturing industries Emissions Trading Scheme (ETS) cap and the so-called “set aside” issue (involving the setting aside of EU

emission allowances) in order to maintain artificially high CO2 prices in the EU-ETS. The Alliance also devel-oped a common position on the EU-ETS Allocation Rules for the third trading period.

The IPPC Alliance (Integrated Pollution Prevention and Control), representing the same sectors as above, changed its name to the Industrial Emissions Alliance (IE Alliance) in order to update it to the new Industrial Emissions Directive (IED)5 as well as to expand its action to other legislative processes on industrial emissions. These include the review of the Gothenburg Protocol and of the National Emission Ceilings Directive6. In 2011, the IE Alliance was fundamental for the exchange of views and experiences on common issues and challenges resulting from the implementation of the IED on what concerns the exchange of infor-mation and on the design, review and adoption of the Best Available Techniques Reference Documents (BREFs).

CEMBUREAU’s participation in the NEEIP (Non-Energy Extractive Industry Panel) was pursued in 2011. The main issues discussed within the NEEIP in-cluded resource efficiency, raw materi-als and biodiversity. In this respect, the NEEIP provided input to the EU’s work on the Raw Materials Initiative7,

the Resource Efficiency Roadmap8 as well as the EU’s Business and Biodiversity Platform. Other issues including Classification, Labelling and Packaging (CLP)9 and REACH10, were also discussed within this alliance, with the Panel also contributing to the European Minerals Foundation dinner debate, held in April, and the Forum at the end of November. As in previous years, NEEIP papers have proved authoritative.

2011 was named the “Year of Resource Efficiency” by the European Commission. With the importance that the Resource Efficiency Roadmap attained thanks to its interlinks with other EU initiatives, the aligned actions by the NEEIP were key to bringing the extractive industries’ views and needs to a fair level of recognition by the European Commission in this field. Special emphasis was placed on the need to guarantee access to raw mate-rials in the EU, as well as promoting quarry rehabilitation practices.

EUCOPRO (the European Association for Co-Processing) is another CEMBUREAU partner on the European scene. Cooperation has continued more particularly, in 2011, on the implementation of the Waste Framework Directive11, SEVESO III12, the development of End-of-Waste criteria and the European Waste

3 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions A Roadmap for moving to a competitive low carbon economy in 2050, COM(2011)112

4 See reference 35 Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control), OJ EU

OJ L 334, 17.12.20106 Directive 2001/81/EC of the European Parliament and of the Council of 23 October 2001 on national emission ceilings for certain atmospheric pollutants, OJ EU L 309,

27.11.20017 Communication from the Commission to the European Parliament and the Council - The raw materials initiative : meeting our critical needs for growth and jobs in

Europe, COM(2008)6998 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions

Roadmap to a Resource Efficient Europe, COM(2011)5719 Regulation (EC) No 1272/2008 of the European Parliament and of the Council of 16 December 2008 on classification, labelling and packaging of substances and mix-

tures, amending and repealing Directives 67/548/EEC and 1999/45/EC, and amending Regulation (EC) No 1907/2006, OJ EU L 353, 31.12.200810 Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 concerning the Registration, Evaluation, Authorisation and

Restriction of Chemicals (REACH), establishing a European Chemicals Agency, amending Directive 1999/45/EC and repealing Council Regulation (EEC) No 793/93 and Commission Regulation (EC) No 1488/94 as well as Council Directive 76/769/EEC and Commission Directives 91/155/EEC, 93/67/EEC, 93/105/EC and 2000/21/EC, OJ EU L 396, 30.12.2006

11 Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives, OJ EU L 312, 22.11.200812 Proposal for a Directive of the European Parliament and of the Council on control of major-accident hazards involving dangerous substances, COM(2010)781

20


Catalogue review13. EUCOPRO also started to prepare for the revision of the Best Available Techniques Reference Document (BREF) for Waste Treatment Industries. CEMBUREAU’s Technical Director is an advisory Member of the EUCOPRO Board.

The REACH Alliance, grouping togeth-er several ‘inorganic sectors’ and which was formed in 2005 to address the formidable challenge of REACH14, continued to follow up on REACH and CLP15 related issues.

CEMBUREAU is a Member of NEPSI, the multi-sectoral negotiation platform on silica (ESDA, European Network for Crystalline Silica) which is monitoring the application of the ESDA on Crystalline Silica concluded in 200616. CEMBUREAU is represented on the NEPSI Council where employers and employees have equal representation.

Implementation in most sectors party to the ESDA is proving successful. However, claims were voiced, in 2011, for the introduction of a European wide exposure limit. Will this be achieved through a new agreement of regulatory measures? The future will tell. In the cement industry, some companies have started to apply the ESDA best practices beyond the scope of the agreement, a practice which should become general.

In the construction industry, CEMBUREAU remained a Member of the ECF (European Construction Forum), where all the industries oper-ating in the field of construction and

the trade union representing workers in the construction sector get togeth-er. Energy efficiency in buildings, particularly in the context of the Energy Efficiency Directive (EED)17 proposed in 2012, remains an item of priority for the ECF as well as coordina-tion on construction within the European Commission policies and regulations. In this respect, a lot is at stake, both positive and negative. The European Construction Forum thus highlighted that action to renovate Europe’s building stock, to reduce energy use in both new and existing buildings and to improve the energy efficiency of infrastructure was a desirable goal. Buildings represent 40% of the total energy consumption in Europe and energy efficiency in buildings is the most effective way to reach the EU’s objective of 20% primary energy savings in 2020. Therefore, whilst the ECF supported the amendments which proposed the strengthening of energy efficiency in buildings on top of the Energy Performance of Buildings Directive (EPBD)18 requirements, it regretted that they are confined to existing buildings, highlighting that the opportunity to tackle also new build-ings should not be missed.

The ECF is a useful platform and CEMBUREAU participation will be maintained. However, in 2011, the construction sector failed to address adequately the challenges for the construction sector as a whole raised by the economic and financial crisis and to seize the opportunities, and the economic solutions that the EU could

present such as, interalia, Project Bonds. There was no follow up to the Manifesto published by the ECF in 2010 while the share of construction in EU GDP fell to an all time low of 5.5% in 2010 in terms of gross value added. A more efficient way to develop a joint construction industry response has yet to be found.

The close cooperation with CEPMC (Council of European Producers of Materials for Construction) was main-tained, with participation in its working groups and task forces on Sustainable Construction, Sustainable Consumption and Production/Sustainable Industrial Policy, Fire, Construction Products Directive/Regulation and Sustainability. After an active contribution of CEMBUREAU to the ongoing discussions regarding the restructuring of the association, CEMBUREAU confirmed, at the end of the year, its intention to become a full member of CEPMC rather than maintain its associate member status.

Members of the CEMBUREAU staff directly engaged in advocacy with the European Institutions remain Members of SEAP (Society of European Affairs Professionals) and are bound by the SEAP Code of professional ethics which had anticipated the European Transparency Initiative (ETI) Rules to which CEMBUREAU is also subscribed. Cooperation with FAIB (Federation of European and International Associations, established in Belgium), of which CEMBUREAU is a Member, was also maintained.

13 Commission Decision of 3 May 2000 replacing Decision 94/3/EC establishing a list of wastes pursuant to Article 1(a) of Council Directive 75/442/EEC on waste and Council Decision 94/904/EC establishing a list of hazardous waste pursuant to Article 1(4) of Council Directive 91/689/EEC on hazardous waste (notified under docu-ment number C(2000) 1147), OJ EU L 226, 6.9.2000

14 Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), establishing a European Chemicals Agency, amending Directive 1999/45/EC and repealing Council Regulation (EEC) No 793/93 and Commission Regulation (EC) No 1488/94 as well as Council Directive 76/769/EEC and Commission Directives 91/155/EEC, 93/67/EEC, 93/105/EC and 2000/21/EC, OJ EU L 396, 30.12.2006

15 Regulation (EC) No 1272/2008 of the European Parliament and of the Council of 16 December 2008 on classification, labelling and packaging of substances and mix-tures, amending and repealing Directives 67/548/EEC and 1999/45/EC, and amending Regulation (EC) No 1907/2006, OJ EU L 353, 31.12.2008

16 Agreement on Workers Health Protection through the Good Handling and Use of Crystalline Silica and Products containing it17 Proposal for a Directive of the European Parliament and of the Council on energy efficiency and repealing Directives 2004/8/EC and 2006/32/EC, COM(2011)37018 Directive 2002/91/EC of the European Parliament and of the Council of 16 December 2002 on the energy performance of building

21


CEMBUREAUMAIN ISSUES

Climate Change

During the course of 2011, CEMBUREAU was actively engaged in contributing to the development of the following Guidance Documents which aim to support the Member States in the implementation of the new allocation methodology for Phase III of the EU Emissions Trading Scheme:

• Guidance Document n°1 on General Guidance to the allocation methodology

• Guidance Document n°2 on Allocation methodologies

• Guidance Document n°3 on Data collection guidance

• Guidance Document n°4 on Verification of National Implementation Measures (NIMs) Baseline Data Reports and Methodology Reports

• Guidance Document n°5 on Carbon leakage

• Guidance Document n°6 on Cross-Boundary Heat Flows

• Guidance Document n°7 on Guidance on New Entrants and Closures

• Guidance Document n°8 on Waste gases and process emissions sub-installation

• Guidance Document n°9 on Sector-specific guidance

In spite of the rather technical and complicated nature of these docu-ments, the Association was able to respond successfully within a relatively short period of time. Those documents are of importance to the sector for the implementation of the benchmark and although, on the whole, the outcome is positive, capacity rationali-sation (under Guidance Document n°7 (GD7) on New Entrants and Closures)

was regrettably not taken into consid-eration. When capacity rationalisation takes place, the transfer of allowances between two installations reducing total emissions, even within the existing capacity of the rationalised installation, clearly contributes to achieving the CO2 reduction objective. CEMBUREAU openly advocated this point during the course of 2011, stressing that industry should logically be allowed to close operations which are not the most CO2-efficient with the possibility of transferring the corresponding allowances, across borders, to a more efficient plant, particularly at a time when industry needs to be restructured in Europe. However, the final version of the GD7 does not address this possibility.

Member States had to submit their National Implementation Measures (NIMs) for EU-ETS 3 by 30 September 2011. By the end of 2011, however, only 7 Member States (Cyprus, Estonia, Lithuania, Latvia, Malta, Poland and Romania) had notified their respective NIMs. It is quite significant that some of the largest Member States, with many installations subject to the EU-ETS, were not likely to notify their NIMs until the New Year, most probably at some point in time during the 1st quarter of 2012.

The delay was not totally unexpected; guidance (see GD4 above) was only provided in bits and pieces in April and June 2011 and completed only on 15 September 2011. Even though most of the content had been known before, the task was daunting. Calculating the amount of allowances to be allocated for free on the basis of diverse benchmarks to numerous installations in different

industries was, in itself, a time and resource consuming task. The diversity which characterises the political and legal process to be followed in Member States is another source of difficulties.

Any delay increases the uncertainty as to what volume of EU emission allowances (EUAs) will be available for free from 1 January 2013. Nor is it possible to know whether a correction factor will apply. Such information is, however, essential to plan production and to decide whether to invest in the EU or elsewhere.

The Association also began to prepare for the review of the list of sectors vulnerable to carbon leakage, which will be launched in 2014. In this respect, a specific Task Force was established.

22


1 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions A Roadmap for moving to a competitive low carbon economy in 2050, COM(2011)112

2 Proposal for a Directive of the European Parliament and of the Council on energy efficiency and repealing Directives 2004/8/EC and 2006/32/EC, COM(2011)370

During the year, CEMBUREAU also advocated in favour of sectors at risk of carbon leakage receiving full compensation, via State aid optional for Member States, for the indirect effects through electricity prices of the EU’s ETS post 2012. In December 2011, the European Commission issued a Consultation on this matter with the aim of obtaining stakeholder views on the State Aid Guidelines. Cement was not listed under Annex II as a sector deemed ex-ante to be exposed to a significant risk of carbon leakage due to indirect emission costs. Given the potential trade distortion which could arise between construction materials whereby some products may be afforded State aid, but cement, which is used in concrete, is not, CEMBUREAU began preparing its response to the Consultation, which was submitted in January 2012.

Following the Consultation from the European Commission on a ‘Roadmap for a low carbon economy by 2050’, to which CEMBUREAU responded at the end of 2010, the European Commission published, in March 2011, its Roadmap on this issue1. This was followed by discussions in the European Parliament Committees on the Environment, Public Health and Food Safety (ENVI) and Industry, Research and Energy (ITRE).CEMBUREAU indicated that it would support the development of EU roadmaps to 2050, under certain conditions, highlighting that the pro-posed Roadmaps should be based on sector by sector analysis of potential reduction levels. The Association also stressed that EU institutions should refrain from undue intervention in the market mechanisms, for example through ‘setting aside’ allowances

(i.e. the removal of emission allowanc-es from the ETS in order to lift the carbon price) as proposed by the “Low carbon roadmap 2050”. The message applies, interalia, to attempts to amend in this respect the Emissions Trading Directive though the Energy Efficiency Directive (EED)2.

Setting aside was first mentioned in a document from the Commission leaked in early May 2011. The idea would be to withdraw a certain volume of EUAs from the auctioning (not the free allowance) cap in order to increase the price on the EUAs market. Whether such allowances would be set aside only for a time and then re-introduced in the system or simply cancelled are questions that remain unclear and still the subject of much speculation.

In November 2011, the European Commission submitted its proposal for a Regulation on the Monitoring and Reporting of Greenhouse Gas Emissions under the EU Emissions Trading Scheme to the Climate Change Committee (CCC), which approved it in December. In CEMBUREAU’s view, this final draft was acceptable to the cement industry, particularly regarding the definitions related to biomass, as well as the provisions on dealing with biomass, as follows:

• ‘biomass’ = the biodegradable fraction of products, waste and residues from biological origin from agriculture (including vegetal and animal substances), forestry and related industries including fisheries and aquacul-ture, as well as the biodegradable fraction of industrial and munici-pal waste. It includes bioliquids and biofuels;

• 'bioliquids' = liquid fuel for energy purposes other than for transport, including electricity and heating and cooling, produced from biomass;

• 'biofuels' = liquid or gaseous fuel for transport produced from biomass;

• ‘biomass fraction’ = the ratio of carbon stemming from biomass to the total carbon content of a fuel or material.

The Verification and Accreditation of verifiers in the EU ETS regulation, also approved by the CCC, was furthermore acceptable to industry. These were then sent to the European Parliament and Council for approval under Comitology.

In January 2011, the European Commission was forced to stop temporarily EU emission allowances trading following the theft of EU allowances in 2010. It is clear that trading under the EU ETS must be made more secure and thus, in 2011, CEMBUREAU made recommendations in that respect. The Association was represented at a stakeholders meeting held in March and raised several recommendations.

23


Energy Efficiency Directive

In 2011, the European Commission adopted the Energy Efficiency Action Plan3. The Action Plan is designed to provide an enhanced framework for national energy efficiency and savings policies. It also reviews the previous Energy Efficiency Action Plan4. This was followed by a proposal for an Energy Efficiency Directive (EED)5. The proposal set out several energy efficiency requirements for end-user sectors, such as the cement industry.

A lot is at stake for the European cement industry, both positive and negative. In this respect, CEMBUREAU, echoing the position of the European Construction Forum in which it is active, indicated that action to renovate Europe’s building stock, to reduce energy use in both new and existing buildings and to improve the energy efficiency of infrastructure was a desirable goal. Buildings represent 40% of the total energy consumption in Europe and energy efficiency in buildings is the most effective way to reach the EU’s objective of 20% primary energy savings in 2020. Therefore, whilst the Association supported the amendments which proposed the strengthening of energy efficiency in buildings on top of the Energy Performance of Buildings Directive (EPBD)6 requirements, it regretted that they are confined to existing buildings, highlighting that the opportunity to tackle also new buildings should not be missed. CEMBUREAU also stressed the need to ensure that the EED does not introduce distortion of competition between construction materials, as well as the fact that the whole life cycle perspective should be taken into account in the assessment of the energy efficiency of buildings,

rather than assessment at product level.

In addition, concerns were raised regarding the proposal which deals with energy efficiency in energy intensive industries. Regarding the mandatory energy audits proposed, the Association advocated in favour of allowing qualified in-house experts to carry out such audits.

In relation to the obligation for new and refurbished industrial installations to capture all waste heat and export such heat to district heating and cooling networks, CEMBUREAU stressed that, in some industries, like the cement industry, solutions other than connecting to district heating and cooling networks would be more efficient and economically viable. Thus the Association indicated that the proposal should allow for this. The EED proposal also envisages to allow the setting aside of allowances under the EU-ETS as a means to sustain the price of EUAs. Following other energy intensive industries, CEMBUREAU has agreed that the introduction of such set-aside through the EED would not lead to energy efficiency and is, therefore, inappropri-ate. The Association also stressed that incentives for emission reductions must, in principle, only spring from transparent and explicit political agreements on the overall cap on emissions, and not from interference with the carbon market (see also under Climate Change).

CEMBUREAU was furthermore con-cerned that the EED appeared to mix energy efficiency and absolute energy savings. In the proposal, the focus is on energy savings, rather than real efficiency. CEMBUREAU proposed to streamline the proposal in the sense

that energy efficiency is supported, and – where conflicting – absolute energy savings are not set at any cost.CEMBUREAU will continue to monitor developments in this field in 2012.

Industrial Emissions Directive (IED)

On 6 January 2011, the Industrial Emissions Directive (IED)7 entered into force. During the course of the year, the IED Article 13 Forum was granted the formal status of an expert group for the exchange of information pursuant to Article 13 of the IED.

To receive a permit, installations covered by IPPC rules must apply “best available techniques” (BATs) so as to optimise their all-round environmental performance. Emission Limit Values (ELVs) must be set within the scope of the ‘BAT conclusions’. Regarding the cement industry, at the very end of 2011, the serious concern that the European Commission intended to derive ELVs and derogations as BAT conclusions from the Cement BAT Reference Document (BREF), which was revised under the IPPC, was confirmed.

Efforts by the European Commission to require and apply retrospectively BAT conclusions to BREFs finalised, like the Cement, Lime and Magnesium Oxide (CLM) BREF, under the former IPPC Directive would result in a real conundrum. CEMBUREAU has strongly opposed this idea and will continue to liaise with the European Lime Association (EuLA) and the European Association of Mining Industries (Euromines), which share the same BREF, to try and ensure that our message is heeded.

3 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Energy Efficiency Plan 2011, COM(2011)109

4 Communication from the Commission - Action Plan for Energy Efficiency: Realising the Potential, COM(2006)5455 Proposal for a Directive of the European Parliament and of the Council on energy efficiency and repealing Directives 2004/8/EC and 2006/32/EC, COM(2011)3706 Directive 2002/91/EC of the European Parliament and of the Council of 16 December 2002 on the energy performance of building7 2010/75/EU, recasting the former Industrial Pollution Prevention and Control [IPPC] Directive

24


Mercury

CEMBUREAU’s work on mercury gathered momentum during the course of 2011. CEMBUREAU, together with the World Business Council for Sustainable Development’s Cement Sustainability Initiative (WBCSD-CSI), played an active role within the Cement Industry Partnership devoted to mercury emissions in the cement industry worldwide, under the United Nations Environment Programme (UNEP). This will be the key channel to develop a global legally binding instrument on mercury to be ready by 2013. The partnership is led by the WBCSD-CSI and is open to participa-tion of Member States and other stakeholders under UNEP. The Partnership Advisory Group officially launched the Cement Partnership on mercury on 6 November 2011.

Resource Efficiency

Resource Efficiency came high up on the EU’s agenda in 2011, culminating in the publication of the European Commission’s Communication enti-tled ‘Roadmap to a Resource Efficient Europe’

8 in September. As well as containing a series medium- (2020) and long-term (2050) resource efficiency objectives, the Roadmap indicates how to achieve these, including targets by 2013 and milestones for 2020.

Of particular importance to the European cement industry were the milestones set for 2020 in relation to waste, soil and construction:

• Waste must be managed as a resource with recycling and re-use of waste becoming economically attractive options.

• The Roadmap also stressed that energy recovery should be limited to non recyclable materials.

• Ensuring that EU policies take into account their direct and indirect impacts on land use in the EU.

• Ensuring that the construction and renovation of buildings and infrastructure attain a high level of resource efficiency, that the life cycle approach is widely applied and that 70% of non hazardous construction and demolition waste is recycled.

One area of particular concern was the invitation extended to governments to shift taxation away from labour towards pollution and resources, and to provide fresh incentives to push consumers towards resource-efficient products. CEMBUREAU took the opportunity of drawing the EU’s attention to the fact that ‘tax neutrality’, as referred to by the European Commission, would not be observed in industries which, like the cement industry, make an intensive use of mineral resources but are characterised by a low labour intensity. Given the total weight of mineral, non-energy resources needed to make cement, the sector would be seriously penalised.

In July 2011, CEMBUREAU contributed to an ECORYS Nederland BV study commissioned by the European Commission (DG Environment regard-ing the number of jobs dependent on the environment and resource efficiency improvements. In its response, CEMBUREAU provided the latest economic data available for the European cement industry. It also reiterated the use of alternative fuels and raw materials in the sector as a resource efficient practice as it reduces

consumption of raw materials and energy, replaces non renewable resources by renewable ones as well as reusing, recycling and recovering waste as a substitute for natural raw materials and energy. The Association also highlighted the fact that resource optimisation in the cement industry represents reducing CO2 emissions, supplying services to local communi-ties in waste management and creating green jobs. Nevertheless, the Association indicated that it is concerned about the lack of coordina-tion, coherence and cohesion between the various Commission Directorate Generals on the issue of Sustainable Consumption and Production/Sustainable Industrial Policy.

Raw Materials

Raw Materials remained high on the EU agenda in 2011, with much of the legislative work going through European Parliament. In this respect, CEMBUREAU welcomed the attention given to the importance of domestic raw material supplies, and the calls for the competent public authorities (national, regional and local) to apply clear, efficient and coordinated administrative procedures for the granting of permits.

8 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Roadmap to a Resource Efficient Europe, COM(2011)571

25


Biodiversity

In 2011, CEMBUREAU remained an active stakeholder within the European Commission’s Business and Biodiversity Platform (B@B). The main issue under discussion was the Non-Energy Extractive Industry and Biodiversity Conservation Bench-marking Discussion Paper which was formally published by the B@B in September 2011. This document aims to assist businesses in identifying solutions to biodiversity challenges related to their activities, whilst at the same time ensuring a fair income and green growth, and providing benefits for biodiversity and ecosystems.

CEMBUREAU participated in the second B@B workshop, during which existing benchmarking instruments were analysed in order to identify whether they could be used to assess the biodiversity performance of companies in the sector, or whether there may be a need and possibility to develop such an instrument. CEMBUREAU will continue to liaise with the European Commission on this issue.

Green infrastructure9 was also a key topic discussed during the year. CEMBUREAU was granted a seat on the European Commission’s Green Infrastructure Working Group which produced a series of ‘Task’ documents with the aim of increasing and strengthening Europe’s green infra-structure network.

Regarding the Natura 2000 network, the Association continued to stress the problems faced by the sector in gaining access to land in Natura 2000 areas.

As highlighted by the “Non-energy mineral extraction and Natura 2000” guidance document, compatibility between extraction activities and biodiversity is achievable through correct resource management during the extraction phases in the cement sector.

Working together with the European Aggregates Association (UEPG), CEMBUREAU also analysed the potential consequences of financial compensation for biodiversity loss (offsets). In this respect, the Association firmly believes that rehabilitation is the most appropriate form of compensation for the European cement industry.

9 Green Infrastructure is defined as an interconnected network of natural areas and green man-made features10 Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives

Waste Framework Directive

The revised Waste Framework Directive (WFD)10 has opened up the possibility to lift, through comitology, the waste status for certain waste streams. Thus, during the course of 2011, CEMBUREAU presented its views on when lifting the waste status may be justified for a limited selection of waste streams, insisting that this should only occur under strict conditions.

The Association stressed the impor-tance of ensuring that the lifting of the waste status should not become an easy way to by-pass waste legislation and should not lead to a leakage of no-longer-waste materials, circulating freely as products, inside and out of the EU, nor should they be subject to less demanding requirements.

26


Regarding the revision of Annex III of the WFD, which contains the criteria to classify waste as hazardous, CEMBUREAU was concerned by the proposals for methods to determine whether waste is an irritant or not. Applying one of the listed methods based on the pH without the neces-sary qualification and nuance, could mean, as a consequence, that certain types of waste concrete from construc-tion and demolition waste could be considered as hazardous instead of as inert waste.

CEMBUREAU has expressed serious concerns regarding lifting the waste status for Solid Recovered Fuels (SRF) as, for such a heterogeneous category, the responsibility of the producer, traceability and transparency are lost once the waste status is lifted. CEMBUREAU believes that lifting the waste status of SRF, under the pressure of market forces, may lead to unfairly promoting waste-to-energy over national recycling.It is to be noted that SRF, once no longer waste, will be subject to registration under REACH11.

REACH and CLP Regulation

In 2011 the EU cement industry agreed on one, well-documented classifica-tion for Portland cement clinker and for common cements under the Classification, Labelling and Packaging Regulation12 and based on scientific information.

A modification, in 2011, of the CLP Regulation from 1 December 2012 allowed for the sensitiser category 1 to be split into two categories: 1A (many individuals sensitised) and 1B (few individuals sensitised). CEMBUREAU

11 Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), establishing a European Chemicals Agency, amending Directive 1999/45/EC and repealing Council Regulation (EEC) No 793/93 and Commission Regulation (EC) No 1488/94 as well as Council Directive 76/769/EEC and Commission Directives 91/155/EEC, 93/67/EEC, 93/105/EC and 2000/21/EC, OJ EU L 396, 30.12.2006

12 Regulation (EC) No 1272/2008 of the European Parliament and of the Council of 16 December 2008 on classification, labelling and packaging of substances and mixtures, amending and repealing Directives 67/548/EEC and 1999/45/EC, and amending Regulation (EC) No 1907/2006, OJ EU L 353, 31.12.2008

Hazard class Hazard category Classification procedure

Skin irritation 2 On the basis of test data

Serious eye damage/ eye irritation 1 On the basis of test data

Skin sensitisation 1 On the basis of literature survey

Specific target organ toxicity single exposure respiratory tract irritation

3 On the basis of literature survey

therefore decided, at the end of the year, to have clinker/cement reclassi-fied as sensitiser category 1B.

The notification of Classification and Labelling (C&L) for Portland cement clinker was carried out by CEMBUREAU on behalf of EU cement manufactur-ers/importers in December 2010. Nevertheless, other, different classifi-cations of Portland cement have been notified to the European Chemicals Agency (ECHA) inventory. ECHA cannot intervene in the process of agreeing on C&L between companies, but agreed to make available tools/platform which will facilitate exchange of information by companies. The C&L inventory was expected to be made publically available in the beginning of 2012, but it has not been confirmed that it will contain informa-tion on whether or not notification was done by a group of manufactur-ers/importers.

In March 2011, a new, updated Safety Data Sheet (SDS) for Portland cement clinker and common cements, supported by the whole of the EU cement industry, was produced and adapted to the new structure of SDS following adaptation of the EU format to the United Nations Globally Harmonized System of Classification and Labelling of Chemicals (UN-GHS) and following entry into force of CLP Regulation. Translations of these SDS and of the SDS for flue dust from the production of cement clinker have been shared amongst the CEMBUREAU membership.

REACH (registration, evaluation, restrictions and authorisation of chemicals) remained a priority for CEMBUREAU in 2011. In this respect, the Association remained an active stakeholder and continued to provide input on issues of relevance to the cement industry. During the summer

27


Revision of Seveso II

Seveso is a Directive from 1996 on the Prevention and Control of Major Accidents in industries considered at risk13. A new revision of this Directive is currently in preparation.

CEMBUREAU is monitoring this issue and has not identified any major source of concern. A strange situation, however, occurs as long as the new Directive has not been approved. Heavy fuel oil, which has been reclassi-fied further to the REACH14 and CLP15 regulations, may lead to certain cement plants falling temporarily within the scope of the Seveso II Directive. As a result of this reclassifi-cation, the thresholds which trigger

of 2011, the European Chemicals Agency (ECHA) issued a draft recommendation for the inclusion of potassium dichromate on the List of Substances Subject to Authorisation (Annex XIV of REACH). Potassium dichromate is used in small quantities as a laboratory chemical to test the chromium (VI) content of cement. Cement producers need to determine this in order to comply with the restriction on the content of Cr (VI) in cement (2 ppm per dry weight) and cement containing mixtures (REACH Annex XVII point 47). It was originally placed on the candidate list in 2010 because of its harmonised classifica-tion as carcinogenic, mutagenic and toxic for reproduction category 1B. If it becomes subject to authorisation, each manufacturer of potassium dichromate would have to apply for authorisation of all uses of the substance (unless there are any uses which are not subject to authorisa-tion). In June, CEMBUREAU issued a paper explaining how to use the exemption from registration for recovered substances under REACH. The document covers which condi-tions have to be fulfilled and which information is necessary. It also contains an annex with more detailed information on substances which are of importance to cement producers and which could fall under this exemp-tion, namely: gypsum, fly ash, blast furnace slag, converter slag and iron oxide.

13 Proposal for a Directive of the European Parliament and of the Council on control of major-accident hazards involving dangerous substances, COM(2010)78114 Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 concerning the Registration, Evaluation, Authorisation and

Restriction of Chemicals (REACH), establishing a European Chemicals Agency, amending Directive 1999/45/EC and repealing Council Regulation (EEC) No 793/93 and Commission Regulation (EC) No 1488/94 as well as Council Directive 76/769/EEC and Commission Directives 91/155/EEC, 93/67/EEC, 93/105/EC and 2000/21/EC, OJ EU L 396, 30.12.2006

15 Regulation (EC) No 1272/2008 of the European Parliament and of the Council of 16 December 2008 on classification, labelling and packaging of substances and mixtures, amending and repealing Directives 67/548/EEC and 1999/45/EC, and amending Regulation (EC) No 1907/2006, OJ EU L 353, 31.12.2008

Substance Classification / named substance

Lower tier (t)

Upper tier (t)

Anhydrous ammonia Named substance 50 200

Ammonia solution ≥ 25% Ac aq tox cat 1 100 200

Ammonia solution < 25% C, N: not in scope

Urea Not in scope

Heavy fuel oil Named substance 2 500 25 000

Gasolines and naphthas Named substance 2 500 25 000

Gas oils including diesel Named substance 2 500 25 000

LPG or natural gas Named substance 50 200

Some grinding aids, lubricants Chron aq tox cat 2 200 500

Acetylene Named substance 5 50

Oxygen Named substance 200 2 000

Petcoke Not in scope

Hazardous waste To be determined by MS

the application of the Seveso Directive are lowered to 100 and 200 tonnes per year. This will be remedied under the new Directive, but only in 2015 when it comes into effect. Under the new Directive the thresholds are adjusted to 2 500 – 25 000 tonnes per year. This is illustrated by the table below which also shows how other hazardous substances relevant to the activity of cement companies are to be treated under the revised Directive. Being temporarily subjected to the Seveso Directive would not trigger any material change of substantial concern, but it might raise concerns in the neighbourhoods located close to the plants as a result of the informa-tion which needs to be provided by Seveso installations.

28


Comprehensive Health Risk Study

The Comprehensive Health Risk Study was launched by CEMBUREAU in 2005 as a response to previous studies among cement workers causing concern about the health risks surrounding the exposure to cement containing dust. The study is composed of several elements including an updated survey of the literature on the question, a toxico-logical study carried out in two phases, one involving in-vitro tests, the other ex-vivo tests, a European Prospective Lung Function Monitoring Study and exposure measurements in the construction industry. All elements, with the exception of the prospective monitoring study, have now concluded. Work therefore began on communicating the results of the CHRS. In this respect, CEMBUREAU commissioned GreenFacts to produce an independent synthesis of the full CHRS, including summaries designed to be easily accessible to external audiences. Work on the report began at the end of 2011. The reports will be finalised by Greenfacts and verified by an independent Scientific Committee in 2012. Communication to all relevant stakeholders will then commence.

Sustainable Consumption & Production

The European Commission’s Joint Research Centre is developing eco-label and green public procure-ment criteria for office buildings. CEMBUREAU, together with the other members of the European Concrete Platform (ECP) submitted comments on the draft criteria and participated in stakeholder meetings. The Commission intends to launch the eco-label scheme in 2013.

On Environmental Footprinting, in November 2011 the European Commission launched a public consultation on its draft methodology for the calculation of the environmen-tal footprint of products and the environmental footprint of compa-nies. CEMBUREAU contributed to the consultation, highlighting that CEN/TC 350 standards already provide accepted product cat-egory rules for construction products.

CEMBUREAU also fol-lowed the various developments related to the Ecodesign Directive16. Of relevance were a study by the Centre for Strategy and Evaluation Services (CSES) on the feasibility of extending the scope, a study by Van Holsteijn en Kemma (VHK) on a Working Plan for 2012-2014, and a preparatory study on ecodesign of

Industrial and Laboratory Furnaces and Ovens, which includes cement kilns.

Work continued on the proposed revisions of the existing Directives on public procurement over the course of 2011. Among the aims of the revision is the use of public procurement in achieving policy objectives, such as environmental objectives.

CEMBUREAU responded to the consultation on the Green Paper in April and the proposed Directives were announced on 20 December 2011.

16 Directive 2009/125/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for the setting of ecodesign requirements for energy-related product

29


The “Main Issues” section covers just the key areas of CEMBUREAU’s work in 2011. The Association continued to work on many other issues throughout the year.

It should also be noted that the Members and company representatives active with the CEMBUREAU Working Groups play an invaluable role in ensuring the success of the Association and the best possible outcome,

and it is to them that we extend our thanks.

For more information on specific issues dealt with by CEMBUREAU, please e-mail [email protected].

Product Standards

CEMBUREAU has a ‘liaison status’ within several of the European Committee for Standardisation (CEN) committees and participated actively in several meetings during the course of the year. In the Technical Committee (TC) 51 and TC 104 relevant commit-tee, 2011 was marked by the adoption of the EN 197-1 Revision, in September which now integrates sulfate resisting cements. Through the Council of European Producers of Materials for Construction (CEPMC), the Association monitored the implementation of the new Construction Products Regulation.

In addition, CEMBUREAU followed up the possible implications of the proposal for a Directive laying down basic safety standards (BSS) for protection against the dangers arising from exposure to ionising radiation17.

The Euratom Directive (BSS) addresses gamma radiation from building materials and indoor exposure to radon.

Furthermore, CEMBUREAU began work looking into how new cements and constituents could be incorporat-ed into existing standards.

The Association also continued to monitor developments relating to the review of the European standardisa-tion system.

CEN/TC 350 “Sustainability of Construction Works”

CEMBUREAU actively contributed to the development of CEN/TC 350 standards during 2011, in particular those related to the product level, the social aspects of buildings and the framework standards. The framework and environmental standards are almost complete but CEMBUREAU’s contribution will continue in relation to social aspects and in the new working group on civil engineering works.

Environmental Product Declarations (EPDs)

With European standard EN 15804, which defines product category rules for the creation of Environmental Product Declarations (EPDs) for construction products, nearing completion, 2011 discussions in CEMBUREAU and elsewhere focused on how and when EPDs should be developed to be in line with this standard. CEMBUREAU’s current EPD for CEM I is valid until 31 July 2013.

Within the context of the EPDs for construction products, CEMBUREAU has chaired the Steering Committee of the project carried out by the University of Dundee on the develop-ment of an indicator on the sustainable use of natural resources. EPDs will contain a number of indicators, including one linked to resource use. This indicator should be fair to all materials and products, transparent and understandable to users.

17 Proposal for a Council Directive laying down basic safety standards for protection against the dangers arising from exposure to ionising radiation, COM(2011)593

30


CEM•PROSPECTS

The 2011 edition of the Energy Market Prospects conference organised by Cimeurope SARL (CEM•PROSPECTS) was held in Budapest, Hungary on 26 & 27 September 2011. It was a success. With 120 participants from 23 countries, the conference reviewed the evolution of the world steam coal & petcoke markets, as well as the freight market over the coming years. Information on alternative fuels was also given during the conference.

THE ENERGY MARKET

The overall kiln combustible market was characterised by very high volatil-ity in 2011, the highest since 2008, translating into difficult purchasing conditions for the world cement industry.

Following severe flooding in many producing countries at the end of 2010, the steam coal market attained peak prices of around US$130 FOB South Africa in January 2011, and similar FOB prices from Colombia and Russia. Despite the fact that the coal market thereafter entered a sideways movement until the end of the third quarter, before entering a bear market, the high prices in H1 led to a sharp firming of other kiln combustibles, in particular petcoke.

FOB prices for petcoke from US Gulf and Venezuela were very strong in H1 of 2011, with FOB prices for high sulphur petcoke increasing from US$80 (at the end of 2010) to peaks of US$115-120 in June 2011. For 4% sulphur petcoke, FOB prices peaked at record prices of US$140-145 in May-June 2011, about US$10-15 above the highs recorded in 2008.

The reasons for the rally were higher steam coal prices, rising demand for petcoke from the cement and steel industries in the Atlantic Basin partly triggered by switching from coal to petcoke and, trend wise, rising interest from Asian consumers.

However, the petcoke market changed completely from June 2011 (on the demand side) due to a combination of falling consumption in several European countries, in turn a conse-quence of sharply lower construction activity in Europe, the sovereign crisis, negative impacts in North Africa, the Arab Spring, and even lower than predicted demand in Brazil. Petcoke production was boosted by high refinery and coker margins in the US, and the pending start up of a number of new cokers from the end of 2011 until the middle of 2013.

The overall shortage of heavy sour crudes has also been amplified due to the setting up of additional refineries in Asia, China and India. Saudi Arabian heavy crudes have thus been shipped to these units instead of to the US Gulf.In parallel, output of Mexican and Venezuelan heavy crudes dwindled.

The equilibrium FOB prices for high sulphur petcoke was set to a level of US$60 for Q4, but given the downwards mo-mentum, the market was deemed to over-shoot downwards by 25% from the US$60 level, to attain a bottom at around US$45.

The market saw a low of US$42-45 FOB US Gulf in December 2011, but has since rallied under the support of lower refinery and coker margins, delays in the starting up of new cokers, and very low inventories at the end of 2011 both on the supply side and with buyers, such as cement plants.Many cement companies are also switching to petcoke from steam coal and gas, such as in South America, adding to overall consumption, despite the still falling construction markets in Europe.

The crude oil markets were in an uptrend for most of 2011 with, in particular, Brent prices holding up, supported by supply threats from Libya, Nigeria and other countries. High prices for crudes compared to those of gasoline and heating oil, have directly led to a deterioration of refinery and coker margins, and may thus result in lower petcoke output in the US Gulf at the beginning of 2012.

31


05

101520253035404550556065707580859095

100105110115120125130135140145150155160165170175180185190195200205210215220225230

FOB South Africa6000 kcal/kg

C & F ARA6000 kcal/kg

US$/t

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

85

90

95

100

105

110

115

120

125

130

135

140

145

150

155

160

165

170

175

C & F W. Europe (ARA)

FOB US Gulf

Sulphur 4%-5%

US$/t

South African Steam Coal PriceJanuary 2003 - Beginning December 2011

Petcoke PriceJanuary 2003 - Beginning December 2011

© Cimeurope

© Cimeurope

32


EVENTS During the course of 2011, CEMBUREAU joined forces with a range of European associations in the organisation of a series of events covering issues of relevance to the European cement industry.

Under the auspices of the European Concrete Platform (ECP), an event was jointly organised with the Architects Council of Europe (ACE) and the European Economic and Social Committee (EESC) in April 2011 to launch the multilingual sustainable construction common language glossary. This event, which fell under the umbrella of the EU’s Sustainable Energy Week, was hosted by EESC Transport and Energy (TEN) Section President Stéphane Buffetaut. The event provided an opportunity for discussions involving contributions from many experts in the field of sustainable construction, including non-governmental and national representatives, supplemented by senior officials from the European Commission. The multilingual glossary now in use across the construction sector, is available from here: http://www.europeanconcrete.eu/issues/common-language

The European Minerals Day initiative (EMD) took place, once more, in 2011. CEMBUREAU once again joined forces with the industrial minerals sector (IMA-Europe), and the European aggregates sector (UEPG), in the organisation of two events designed to raise awareness about the impor-tance of minerals in our daily lives. The first of these two successful initiatives was the organisation in April of a Parliamentary Première, held at the European Parliament located in Brussels. Attended by over 100 participants representing the European institutions, Permanent Representations and Embassies as well as the minerals sector and NGOs, the EMD partners took this opportunity to highlight the European minerals sector’s contribution to Europe’s sustainable, smart and inclusive growth.

This was followed by the official open days which were held in quarries across Europe during the weekend of 13 – 15 May 2011. Together with a representative from the European Commission, the EMD partners were present at the Bulgarian central event held in Vetovo.

In October 2011, CEMBUREAU once again joined forces with the other members of the European Concrete Platform (ECP). On this occasion, the aim was to promote both the activities of the ECP as well as the benefits of concrete in terms of sustainable construction. The ECP was thus present with a stand during the World Sustainable Building Conference which was held in Helsinki. The key topics presented to visitors included the benefits of thermal mass in relation to reducing the energy consumption of buildings, as well as the fire safety properties of concrete.

33


CEMBUREAU IT

New CEMBUREAU Document Management System

With the aim of facilitating and strengthening the work of the CEMBUREAU secretariat, the Association has invested in the development of a dedicated Document Management System (DMS). In collaboration with the CEMBUREAU staff, a consultant was identified and a programme selected and adapted to meet the Association’s needs.

The programme, “Organon”, allows for the management of, amongst others, contacts, documents, working groups and meetings. During the year, tests were carried out on the system and training provided to all members of staff. CEMBUREAU would like to thank the positive efforts of the whole team in implementing this tool.

CORPORATE

CEMBUREAU Public Affairs

In terms of Public Affairs, CEMBUREAU continued to work closely with both the Members Plenary Group (MPG) and the Senior Advisory Group (SAG), in order to ensure a valuable contribu-tion to CEMBUREAU’s advocacy.

In addition to regular contacts on specific issues, the MPG met twice in 2011. The first meeting (MPG Working Session) was held in Brussels in springtime, and their Annual Meeting was held in Bucharest (Romania) in September. Once again, these Meetings are of utmost importance for co-ordinating and implementing the actions of CEMBUREAU and its Members.

The SAG also played an indispensable role, with the majority of its work being conducted via conference calls and e-mails.

Contacts with other Cement Associations

CEMBUREAU’s Chief Executive attend-ed the General Assembly of FICEM (the Federación Interamericana del Cemento) held in Quito, Ecuador on 28 October 2011.

CEMBUREAU also maintained regular contacts with the Australian Cement Industry Federation (CIF), the Japan Cement Association (JCA), and the Portland Cement Association (PCA) and the Sindicato National da Industria do Cimento (SNIC – Brazil).

The Association was also involved in the CSI’s (Cement Sustainability Initiative) stakeholders’ forum held in Bangkok, Thailand on 20 September 2011, the focus of which was sustaina-ble development, particularly in Asia.

In September 2011, the Association was also represented at a workshop under the auspices of the Global Superior Energy Performance Partnership (GSEP). GSEP is an initiative of the Clean Energy Ministerial (CEM) and the International Partnership for Energy Efficiency Cooperation (IPEEC).

The aim of GSEP is to reduce global energy use in industrial facilities and commercial buildings in order to improve energy security and to reduce global greenhouse gas emissions. Cement is one of the 6 GSEP working groups and the aim of the workshop was to discuss its future activities. These include working further on an Activity Statement of Common Interests and Strategies to Implement the Mission by the next meeting which will be held in 2012.

CEMBUREAU is now liaising with the European Commission to give a European dimension to this public–private partnership.

34


TechnicalDirector: Claude LoréaAssistant: Marie-Hélène Troger

Health & Safety Issues Officer: Kamil Mroz (from 16 April 2012)Issues Manager: Vagner MaringoloIssues Officer: Karl Downey

Secretary: Cathy RoelandSecretary: Inna Perova

Chief ExecutiveJEAN-MARIE CHANDELLEKOEN COPPENHOLLE (Chief Executive from 1 July 2012)

Assistant: Martine ParavySecretary: Stella Kirabo

Corporate & Human ResourcesManager: Nathalie TimmermanSecretary: Sylvianne Liesen

Office & PropertyManager: Nour-eddine ChafkiAssistant: Latifa Ben YamounSecretary: Sylvianne Liesen

Finance & ITManager: Eric BergerIT assistant: Latifa Ben Yamoun Secretary: Sylvianne Liesen

CommunicationsHead: Jessica JohnsonGraphic Designer & Corporate Identity: Patricia MoreauxSecretary: Inna Perova

Intelligence UnitHead: Jean-François MottintInformation Analyst: Jean-Baptiste Gomes de Almeida MoraisAssistant: Nour-eddine Chafki

Statistics & Industrial DataEconomics & Statistics Officer: Alessandro Sciamarelli (from 9 July 2012)Secretary: Mireille Tonnet

EnergyHead: Sven RydahlSecretary: Mireille Tonnet

CEMBUREAU SECRETARIAT

35CEMBUREAU organisational structure on 30 April 2012

CEMBUREAU

ORGANISATIONAL

STRUCTURE

ON

30 APRIL 2012

CEMBUREAU organisational structure on 30 April 201236

CEMBUREAU ORGANISATIONAL STRUCTURE

Austria T. Spannagl

Belgium P. Dolberg A. Jacquemart

Bulgaria A. Chakmakov T. Kostov

Czech Republic J. Hrozek J. Chmela

Denmark R. Nicolini M.L. Braad

Estonia M. Einstein

Finland K. Matikainen

France J.Y. Le Dreff R. Benyakhlef

Germany G. Hirth Ch. Knell

Greece S. Baltzis P. Deleplanque

Hungary J. Szarkándi

Ireland H. Morris K. McKnight

Italy M. Buzzi F. Pedetta

Latvia E.A. Garcia Morelos Zaragoza R. Kuhn

Lithuania J.A. Mituzas A. Zaremba

Luxembourg J.-P. Proth W. Bauer

Netherlands D. Gauthier R. van der Meer

Norway G. Syvertsen P. Brevik

Poland T. Ehrhart K. Kocik

Portugal L.F. Sequeira Martins G. Salazar Leite

Romania M. Rohan D. Bach

Slovenia J. Funda

Spain J. Béjar V. Lefebvre

Sweden J. Gånge

Switzerland U. Sandmeier K. Wenger

Turkey M. Güçlü

United Kingdom J. Morrish J. Gonzalez

Permanent AlternatesFull Members

Members Ex Offi cio J.-M. Chandelle Chief Executive K. Coppenholle Chief Executive (from 1 July 2012) C. Loréa Technical Director A.M. O'Loghlen President of Liaison Committee

BOARDPresident I. Madridejos FernandezVice President P. Hoddinott


Austria T. Spannagl

Belgium P. Dolberg A. Jacquemart

Bulgaria A. Chakmakov T. Kostov

Czech Republic J. Hrozek J. Chmela

Denmark R. Nicolini M.L. Braad

Estonia M. Einstein

Finland K. Matikainen

France R. Benyakhlef J.Y. Le Dreff

Germany Ch. Knell G. Hirth

Greece S. Baltzis P. Deleplanque

Hungary J. Szarkándi

Ireland K. McKnight H. Morris

Italy P. Bianchi

Latvia E.A. Garcia Morelos Zaragoza R. Kuhn

Lithuania J.A. Mituzas A. Zaremba

Luxembourg J.-P. Proth W. Bauer

Netherlands D. Gauthier

Poland T. Ehrhart K. Kocik

Portugal G. Salazar Leite C.M.D. Oliveira

Romania M. Rohan D. Bach

Slovenia J. Funda

Spain V. Lefebvre J. Ruiz de Haro

Sweden J. Gånge

United Kingdom J. Morrish J. Gonzalez

President A.M. O’LoghlenVice President G. Hirth

Permanent AlternatesFull Members

Members Ex Offi cio J.-M. Chandelle Secretary General K. Coppenholle Secretary General (from 1 July 2012) C. Loréa Technical Director

LIAISON COMMITTEE OF THE CEMENT INDUSTRIES IN THE EU


Austria T. Spannagl

Belgium A. Jacquemart

Germany G. Hirth

Latvia I. Madridejos Fernandez (CEMBUREAU President)

Members Ex Offi cio J.-M. Chandelle CEMBUREAU K. Coppenholle CEMBUREAU E. Berger CEMBUREAU

RESOURCES COMMITTEE

Chairman: P. Hoddinott

Composition

STEERING COMMITTEE

Working Group Nominee(s) Country Position

Working Group 1 “Climate Change & CO2”

D. Gauthier Netherlands SponsorV. Mages Slovenia Co-ChairmanF.J. Merle Pons Spain Co-Chairman

Working Group 2“Energy & Materials Resources”

T.P. Ehrhart Poland SponsorR. van der Meer Sweden Co-ChairmanJ-P. Grozellier Switzerland Co-Chairman

Working Group 3“State of the Art in Cement Manufacturing”

P. Bianchi Italy SponsorJ. M. Bravo Ferreira Portugal Co-ChairmanG. Cinti Italy Co-Chairman

Working Group 4“Health & Safety”

T. Spannagl Austria SponsorM.H. Silva Portugal Co-ChairmanM. Schneider Germany Co-Chairman

Working Group 5“Markets & Products”

M. Güçlü Turkey SponsorP. Dolberg Belgium SponsorC. Bannon Ireland Co-ChairmanJ. C. López Agüí Spain Co-Chairman

Members Ex Offi cio

R. Mirza CSI - Observer

I Madridejos Fernandez CEMBUREAU PresidentA.M. O'Loghlen Liaison Committee PresidentG. Hirth Liaison Committee Vice PresidentJ.-M. Chandelle Chief ExecutiveK. Coppenholle Chief Executive (from 1 July 2012)C. Loréa Technical Director


MEMBERS PLENARY GROUPAustria F. Friembichler

Belgium A. Jasienski

Bulgaria V.B. Stariradev

Croatia Z. Bartolovic T. Renic

Czech Republic J. Gemrich

Denmark R. Nicolini

Estonia M. Einstein

Finland K. Matikainen France A. Bernard-Gély

Germany M. Schneider

Greece N. Kotitsas

Hungary T. Pálvölgyi Ireland K. McKnight Italy G. Schlitzer

Latvia E.A. Garcia Morelos Zaragoza

Lithuania A. Zaremba Alt. J.A. Mituzas

Luxembourg J.-P. Proth Netherlands A. Burger

Norway G. Syvertsen

Poland J. Deja Portugal M.J. Azancot

Romania M. Dracea

Slovenia J. Funda Spain A. Zaragoza Ramírez

Sweden A. Lyberg

Switzerland G. Spicher Turkey O. Tezmen United Kingdom P. Chana


Associations

AITEC D. Gizzi G. Schlitzer

ATIC M.J. Azancot MPA-Cement D. Demorais R. Leese

Ofi cemen E. Alonso Pelegrín

SFIC A. Bernard-Gély

VDZ J. Ruppert M. Schneider

Companies

Aalborg R. Nicolini

CEMEX M. Casey

CRH C. A. Bannon

HeidelbergCement C. Moreau R. van der Meer

Holcim R. Mirza

Italcementi M. Benusiglio S. Gardi

Lafarge K. Rispal Alt. A. Vauchez

Members Ex Offi cio J.-M. Chandelle CEMBUREAU K. Coppenholle CEMBUREAU C. Loréa CEMBUREAU

SENIOR ADVISORY GROUP


WORKING GROUPS AND TASK FORCES

WORKING GROUP 1 “Climate Change and CO2”

Co-Chairmen V. Mages - F. J. Merle Pons Task Forces - Carbon Leakage - CEN TC 264 WG33 Mirror Group - 2050 Low Carbon Economy Roadmap

WORKING GROUP 2 “Energy and Materials Resources”

Co-Chairmen J-P. Grozellier - R. van der Meer Task Forces - Biodiversity - Electricity - Solid Fuels - End of Waste

WORKING GROUP 3 “State of the Art in Cement Manufacturing” - (including environmental performance)

Co-Chairmen J. M. Bravo Ferreira - G. Cinti Task Force - Revision of the BREF

WORKING GROUP 4 “Health and Safety”

Co-Chairmen M.H. Silva - M. Schneider Task Forces - Comprehensive Health Risk Study - Crystalline Silica - REACH – SDS - C&L

WORKING GROUP 5 “Markets and Products”

Co-Chairmen C.A. Bannon - J.C. López Agüí Task Forces - Product Standards and Regulations - Sustainable Construction

CEMBUREAU MANAGEMENT

Chief Executive J.-M. ChandelleChief Executive (from 1 July 2012) K. CoppenholleTechnical Director C. Loréa


MEMBERS

&

ASSOCIATEMEMBER


MEMBERSAUSTRIA VÖZ – Vereinigung der Österreichischen Zementindustrie

Association of the Austrian Cement Industry

BELGIUM Febelcem – Fédération de l’Industrie Cimentière Belge a.s.b.l.Association of the Belgian Cement Industry

CZECH REPUBLIC Svaz výrobců cementu ČRCzech Cement Association

DENMARK Aalborg Portland A/S

FINLAND Finnsementti Oy

FRANCE SFIC – Syndicat Français de l’Industrie CimentièreAssociation of the French Cement Industry

GERMANY VDZ – Verein Deutscher Zementwerke e.V.German Cement Works Association

Tannenstrasse 2DE - 40476 Düsseldorfwww.vdz-online.de

Tel.: +49 211 45 78 1Fax: +49 211 45 78 [email protected]

ESTONIA KNC – As Kunda Nordic TsementKunda Nordic Cement Corporation

Jaarma 2EE - 44106 Kundawww.knc.ee

Tel.: +372 32 29 900Fax: +372 32 21 [email protected]

BULGARIA BACI – Bulgarian Association of Cement Industry73 Todor Alexandrov BlvdBG - 1303 Sofiawww.bacibg.org


Reisnerstrasse 53AT - 1030 Wienwww.zement.at

Tel.: +43 1 714 66 81 0Fax: +43 1 714 66 81 [email protected]

Boulevard du Souverain 68BE - 1170 Bruxelleswww.febelcem.be


K. Cementárně 1261CZ – 153 00 Praha 5 - Radotínwww.svcement.cz


Islands Brygge 43DK - 2300 Kobenhavn Swww.aalborgportland.com


Skräbbölentie 18FI - 21600 Parainenwww.finnsementti.fi


7, place de la Défense, La Défense 4FR - 92974 Paris-La-Défense Cedexwww.infociments.fr

Tel.: +33 1 55 23 01 23Fax: +33 1 55 23 01 [email protected]


IRELAND Cement Manufacturers Ireland

ITALY Aitec – Associazione Italiana Tecnico Economica del CementoItalian Technical and Economic Association of Cement

LUXEMBOURG CIMALUX s.a.

NETHERLANDS ENCI BV - Eerste Nederlandse Cement Industry

NORWAY Norcem A.S.

POLAND PCA – Stowarzyszenie Producentów CementuThe Polish Cement Association

HUNGARY MCSZ – Magyar Cementipari SzövetzégHungarian Cement Association

CEMEX LATVIALATVIA

GREECE HCIA – Hellenic Cement Industry Association

LITHUANIA Akmenes Cementas AB

1 Bakou G. StreetGR - 115 24 Athenswww.hcia.gr


Bécsi út 120.HU - 1034 Budapestwww.mcsz.hu


Confederation House 84/86 Lower Baggot StreetIE - Dublin 2

Tel.: +353 1 605 16 21Fax: +353 1 638 16 21

Piazza Guglielmo Marconi 25IT - 00144 Romawww.aitecweb.com

Tel.: +39 06 54210237Fax: +39 06 [email protected]

Lielirbes liela 17a - 28LV - 1046 Rigawww.cemex.lv

Tel.: +371 67033400Fax: +371 [email protected]

J.Dalinkeviciaus g.2LT - 85118 Naujoji Akmenewww.cementas.lt

Tel.: +370 425 58395Fax: +370 425 [email protected]

50, rue Romain FandelLU - 4149 Esch-sur-Alzettewww.cimalux.lu

Tel.: +352 55 25 25 1Fax: +352 55 70 [email protected]

Lilleakerveien 2 BNO – 0283 Oslowww.norcem.no


Gebouw CementrumSt. Teunislaan 1NL - 5231 BS ’s-Hertogenboschwww.enci.nl


ul. Lubelska 29PL - 30 003 Krakówwww.polskicement.pl



TURKEY TÇMB – Türkiye Çimento Müstahsilleri BirligiTCMA – Turkish Cement Manufacturers’ Association

UNITED KINGDOM MPA – Mineral Products Association – Cement

All country codes are written in accordance with ISO Standard 3166 - Part 1

SWITZERLAND cemsuisse

SPAIN Oficemen – Agrupación de Fabricantes de Cemento de EspañaAssociation of Spanish Cement Producers

SWEDEN Cementa AB

ROMANIA CIROM

SLOVENIA SLOCEM – Slovenian Cement Producers Association

PORTUGAL ATIC – Associação Técnica da Indústria de CimentoTechnical Association of the Cement Industry

Edifício Central ParkRua Central Park, nº 6 - 1º CPT-2795-242 Linda-a-Velhawww.atic.pt


1-3 Valter Maracineanu St, 3rd floor, Room 250-252, Sector 1RO - 77562 Bucharestwww.cirom.ro


Dunajska 63SI - 1000 Ljubljana


José Abascal 53 - 1°ES - 28003 Madridwww.oficemen.com


PO Box 47210SE - 100 74 Stockholmwww.cementa.se


Marktgasse 53CH - 3011 Bernwww.cemsuisse.ch


Tepe Prime, A Block Floor: 18-19Eskişehir Devlet Yolu(Dumlupinar Bulvari) 9.kmTR - No: 266 06800 Ankarawww.tcma.org.tr


Riverside House4 Meadows Business ParkStation Approach, Blackwater, CamberleyGB - Surrey, GU17 9ABcement.mineralproducts.org



All country codes are written in accordance with ISO Standard 3166 - Part 1

Croatia Cement g.i.u.CROATIA

ASSOCIATE MEMBER

Prilaz Gjure Deželića 30HR - 10000 Zagrebwww.croatiacement.hr


48


ACE Architects Council of Europe

ACEI Alliance for a Competitive European Industry

AEII Alliance of Energy Intensive Industries

BAT Best Available Techniques

BIBM European Federation for Precast Concrete

BREF Best Available Techniques Reference Document

BSS Basic Safety Standards

BUSINESSEUROPE Confederation of National Employers Federations

CCC Climate Change Committee

CEM Clean Energy Ministerial

CEPMC Council of European Producers of Materials for Construction

CLM Cement, Lime and Magnesium Oxide

CLP Classification, Labelling & Packaging

CSES Centre for Strategy and Evaluation Services

CSI Cement Sustainability Initiative

ECB European Central Bank

ECF European Construction Forum

ECP European Concrete Platform

EED Energy Efficiency Directive

EESC European Economic and Social Committee

EFCA European Federation of Concrete Admixtures Associations

ELVs Emission Limit Values

ENVI European Parliament Committee on the Environment, Public Health and Food Safety

EPBD Energy Performance of Buildings Directive

EPDs Environmental Product Declarations

ERMCO European Ready Mixed Concrete Organisation

ESDA European Social Dialogue Agreement

ETS Emissions Trading Scheme

EUCOPRO The European Association for Co-processing

EuLA European Lime Association

Euromines European Association of Mining Industries

FAIB Federation of European and International Associations

FOB Freight on Board

GNR Getting the Numbers Right

GSEP Global Superior Energy Performance Partnership

IED Industrial Emissions Directive

IMA-Europe Industrial Minerals Sector

IMF International Monetary Fund

IPEEC International Partnership for Energy Efficiency Cooperation

ITRE European Parliament Committee on Industry, Research and Energy

MEPs Members of the European Parliament

MPG Members Plenary Group

NEPSI European Network for Crystalline Silica

NIMs National Implementation Measures

REACH Registration, Evaluation and Authorisation of Chemicals

SAG Senior Advisory Group

SEAP Society of European Affairs Professionals

SFR Solid Recovered Fuels

UEPG European Aggregates Association

UNEP United Nations Environment Programme

WBCSD-CSI World Business Council for Sustainable Development-Cement Sustainability Initiative

WFD Waste Framework Directive

ABBREVIATIONS GLOSSARY

© Copyright: CEMBUREAUN° Editeur: D/2012/5457/May

All rights reserved. No part of this report may be reproduced, stored in a retrieval

system or transmitted in any form or by any means, electronic, mechanical, photocopying,

recording or otherwise, without the prior written permission of the publisher.

Published by CEMBUREAU The European Cement Association

Rue d’Arlon 55 - BE-1040 BrusselsTel.: + 32 2 234 10 11Fax: + 32 2 230 47 20

[email protected]

Layout & Printing by CEMBUREAU

Photographs:

Thanks to: Cover: "Turning Torso" - Malmö - Sweden - iStockphoto.comp. 11-15-21 & 32: iStockphoto.comp. 25: ©PhosfoR from iStockphoto.comp. 28: ©neptuno from iStockphoto.comp. 30: ©soultga from iStockphoto.comp. 34: "Etrange Couple" - Courtesy of Jean-Marie Huberty