Introduction and Background:
The cement industry is responsible for approximately 7-8% of the world’s total CO2 emissions. In Turkey the sector accounts for around 14% of the country’s total GHG emissions and for almost half of the industry sector’s GHG emissions. The country is the fifth-largest cement producer globally and the largest cement producer in Europe. Its CO2 emissions from cement production increased by more than 300%, between 1990 and 2021. Turkey’s updated NDC covers industry and promotes a transition towards low-carbon technologies. While the NDC has no direct mitigation target for the cement industry, the country is developing a ‘Green Growth Technology Roadmap’ for the sector and plans the adoption of a new climate law in 2025. With a net-zero target of 2053, an accelerated transition of the cement sector, the achievement of certain milestones, and the early introduction of certain disruptive technologies will be critical.
Project Goals and Approach to Transformational Change:
The project, “Advancing the Decarbonisation of Türkiye’s Cement Industry” has the overall goal to support Turkey in the decarbonisation of the cement sector. To this end the project will support the early adoption of energy efficiency and encourage the uptake of alternative raw materials used in the production process to reduce the process emissions of cement production. It will also implement two innovative pilot projects, finance the development of a Technology Implementation Action Plan (TIAP) and support the creation of an enabling policy framework for decarbonisation efforts.
Simultaneously, the project will support the use of low-carbon cement in construction and ensure that the construction sector is well-informed about various cement types and their applications through the implementation of capacity-building and training measures.
The planned scope is designed to influence the entire industry by taking a comprehensive approach. By enhancing the capacity of stakeholders, implementing a financial mechanism, and refining the regulatory framework, the project intends to extend the capacity of the overall industry sector. This broader impact aims to catalyse a sector-wide transformation.
Project Components and Support Mechanisms:
The project’s financial mechanism involves blending EUR 15 million of Mitigation Action Facility (MAF) funding with EUR 71.5 million in loans of EBRD co-financing to support pilot decarbonisation projects. This structured export finance approach leverages export credit agencies (ECAs) to provide low-cost, long-term financing, reduces lender risk and makes advanced decarbonisation technologies more accessible to private cement companies in Turkey.
EUR 10 million of MAF funding will be allocated to the technical component of the project. Funding will support the development of an enabling policy mix, the creation of TIAP and the deployment of innovative decarbonisation technologies, extensive capacity-building initiatives, collaboration and knowledge sharing activities and monitoring and evaluation. By addressing the technical, regulatory, and social aspects of decarbonisation, the project aims to create a sustainable and scalable model for reducing emissions in the cement industry.
Mitigation Potential and Long-Term Impact:
Total GHG emission reductions during the project are expected to reach over 1.3 million tCO2e. Over technology lifetime emission reductions are expected to reach over 27 million tCO2e. Cost effectiveness is about 4,6 EUR/tCO2e over the course of the project plus ten years.