A solvable problem

The cement industry is one of the most carbon-intensive industries in the world – and will only grow more intense. As the world's population rises, the demand for concrete is set to generate 3.8 billion tonnes of CO2 in 2050 – around 100 times more than the total annual carbon emissions of Switzerland. For a long time, cement was deemed almost too difficult to decarbonise. The main source of carbon emissions in cement production is calcination, the chemical process used to manufacture clinker, long considered an irreplaceable ingredient. Today, however, there is cement that does not call for any clinker at all. This shows that the problem can be solved – it is simply a question of the right incentives, not the limits of technology.

Low prices, few incentives

Cement production provides companies with low profit margins while requiring high levels of investment in plants, logistics networks and compliance with quality standards. Furthermore, cement is hardly transported across continents; it is too heavy for that. Over the decades, this fostered consolidation into a few big players who dominated the market, especially in Europe.

All of this hampered progress in decarbonisation for a long time. There is little fear of new competitors, and the EU has also not exerted much pressure. Instead, it granted carbon-intensive industries a generous grace period by distributing free emission certificates in the triple-digit billion range – more than it received from emissions trading. Even Holcim, for instance, received certificates worth EUR 1.4 billion from the EU in 2022. Overall, however, this money promoted the status quo rather than spurring a transformation.

It would be more far-sighted to promote demand and market access for sustainable cement. In Europe, the Netherlands and Ireland have already introduced binding limits for carbon emissions in construction. In Switzerland, some cantons will draw level in 2026. The EU has begun allowing market access for new types of cement. This is an important first step and provides incentives for industry. Innovative rules at all levels play a key role in fostering innovation and successfully transforming the sector.

Sustainability as a cost-cutting tool

Holcim, one of the world’s largest cement producers, sees its low-carbon product range as the future – that was the message to investors on Capital Markets Day 2025. Green cement, which goes for a higher price but is cheaper to produce, is one way of breaking free of the low margins in the cement business. Replacing clinker with cheap clay and oil and gas with renewable energy saves on costs. At the same time, higher prices can be charged for green cement. That sounds like a win-win. But these approaches only lower emissions. They do not eliminate them. That’s why the big cement manufacturers are hoping for another solution: carbon capture, utilisation and storage (CCUS).

A question mark over CCUS

Yet what is communicated less prominently is that the use of CCUS increases production costs significantly – by up to 50%, according to estimates. The idea is to capture the CO2 emitted during the calcination process, sink it into the seabed or resell it. This is both technically and politically complex. Many parties need to pull together to make it all work, and it costs a lot of money. Nothing can be achieved without large subsidies from the EU, and even then, success on an industrial scale is not guaranteed. How much will it really cost? And who guarantees that the CO2 is actually captured or remains sunk in the soil? For instance, it recently emerged that the Norwegian energy company Equinor’s oldest carbon storage facility had been overestimating the amount of CO2 it had captured over the years by up to 10 times. Experts appear united in the view that CCUS technology will play a role in future. But it must not be an excuse for neglecting more direct routes to decarbonisation. At Holcim, the plan is to eliminate 44% of emissions with CCUS. This is significantly higher than what the global cement association stipulates.

A formula for success

We would like Holcim to focus more on its core strengths: using its power of innovation for new, improved and more cost-effective building materials. The recently unveiled 2030 strategy, the abundance and versatility of new product launches, progress in concrete recycling (up 20%) and the development of ultra-thin, load-bearing concrete slabs give us cause for optimism. This innovative capability must now also be reflected in actual figures – for instance, in terms of carbon intensity and the high proportion of climate-damaging clinker used compared with the industry (72%). Holcim wants to replace half of it with clay, using an innovation developed at EPFL (LC3). This is good news, but the volume produced is still very low, at around half a per cent of total capacity. Other manufacturers, other markets and, last but not least, scientific research show that there is still a lot of room for concrete improvement. Accordingly, a group of renowned research institutes – including EPFL – aims to demonstrate that it is possible to reduce the proportion of clinker to 40% by 2030 without compromising quality. If legislators and the construction industry get on board, decarbonisation of the cement industry can also be achieved without CCUS.