Following up on the previous issue of the CemExec feature with Howard Klee from the WBCSD Cement Sustainability Initiative (CSI) Program Director, he expands on the practical implications of his work for cement companies.

Klee explains how he sees regional and regulatory differences impact competitiveness. Additionally, he highlights how “environmentally conscious” needs to be an integral part of cement business operations.

CemWeek:  How can cement companies in high-cost regions benefit from the regulations and stay competitive with less regulated, emerging markets?

Howard Klee: Cement tends to be a local product, and is not traded as much internationally as some other materials such as aluminum and steel.  Nevertheless, cement can be and is transported over large distances by ship where adequate port facilities are available at both ends of the shipment.  In the past few years, cement has been exported from China to the US and Europe, among other places.  Cement can be exported from the mid-east into Europe relatively easily.  There are manufacturing cost differences between countries which reflect differences in fuel and labor costs, equipment costs, and other factors.

When countries or regions adopt different climate policies, these can add to normal economic cost differences.  It is possible that the differences between regions would be great enough to drive further imports into high cost regions from lower cost regions.  Effective climate regulations would be designed to minimize these trade distortions which could disrupt local industry.  This subject was discussed in detail at a recent OECD Sustainable Development Roundtable in which several CSI companies participated.