0CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgCEMENTSCIENCEBASEDTARGETSETTINGGUIDANCE1CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgCONTENTS1EXECUTIVESUMMARY32INTRODUCTION32.1Overviewofthedevelopmentprocess43DEVELOPMENTOFCEMENTDECARBONIZATIONPATHWAYS63.1OverviewoftheSectoralDecarbonizationApproach(SDA)63.2Choiceofemissionsscenariosfor1.5ºC83.3Definitionofthesectorcoveredbythepathway113.4Sectorcarbonintensitypathways124HOWTOSETSCIENCEBASEDTARGETSFORCEMENTANDCONCRETECOMPANIES144.1Overviewoftargetsettingstepsforcompanies144.2Overviewofcement-specificcriteriaandrecommendations144.3GHGaccountingrules174.4Near-termandlong-termtargets204.5Scopesrequired204.6Target-settingmethods214.7Combined-scopetargets224.8CriteriaonScope3emissionsforcementcompanies235GUIDANCEFORCALCULATINGSCOPE3EMISSIONS246GUIDANCEONSOMECEMENT/CONCRETE-SPECIFICPROCESSES256.1Naturalrecarbonation256.2Industrialmineralisation256.3CCU,CCSandBECCS276.4Optimizingcementuseinconcreteandbuildings277GUIDANCEONTARGETSETTINGFORDIFFERENTTYPESOFCOMPANIES287.1GuidanceforincludingconcreteproducedbycementcompaniesinSBTs287.2Guidancefornon-clinker-producingcementcompaniestosetSBTs287.3Guidancefornon-clinker/cement-producingconcretecompaniestosetSBTs297.4GuidanceforotherpotentialusersofcementSDA:e.g.,constructioncompanies308USINGTHETARGETSETTINGTOOLS318.1Combinedandseparatetargets312CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org9SUBMITTINGATARGETFORVALIDATION359.1Ensuringnear-termtargetscontributetolong-termprogress359.2Justificationofprojectedgrowth369.3Communicatingatarget3610CONCLUDINGREMARKSANDOPPORTUNITIES3811GLOSSARY3912BIBLIOGRAPHY4013APPENDIXI:SCOPE2PATHWAY4214APPENDIXII:NATURALRECARBONATIONANDTARGETSETTING443CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgDisclaimer:thisguidancedocumentisreleasedforpublicconsultationasadraft.Itthereforereflectsthethinkingoftheprojectteamatthetimeofrelease,butthecontentissubjecttochange,andmethodsorchoicesproposedherewillnotnecessarilyallbereflectedinthefinalpublicationsignedoffbytheScienceBasedTargetsinitiative(SBTi).1EXECUTIVESUMMARYScience-basedtargetsspecifyhowmuchandhowquicklyacompanywouldneedtoreduceitsgreenhousegas(GHG)emissionsinordertoalignwiththegoalsoftheParisAgreement.Thecementsectoristhethird-largestindustrialenergyconsumerandthesecond-largestindustrialCO2emitterandrepresentsabout7%ofCO2emissionsglobally.Throughthisguidancedocumentandaccompanyingtools,theSBTiaimstoprovidecompaniesinthesectorwiththeresourcestheyneedtoset1.5ºC-alignednear-andlong-termclimatetargets.Thisdocumentprovidesthescientificbasisforsector-specific1.5ºCdecarbonisationpathways,aswellasguidanceontargetsetting,includingdetailedguidanceonhowtodealwithprocessesthatarespecifictothecementandconcretesector,GHGaccountingcriteriaandrecommendations,guidanceforsubmittingatargetforvalidation,andexamplesonhowdifferenttypesofcompaniescanusethetools.2INTRODUCTIONThroughthe2015ParisAgreement,worldgovernmentscommittedtolimitingglobaltemperaturerisetowell-below2°Cabovepre-industriallevelsandpursuingeffortstolimitwarmingto1.5°C.In2018,theIntergovernmentalPanelonClimateChange(IPCC)warnedthatglobalwarmingmustnotexceed1.5°Cabovepre-industrialtemperaturestoavoidthecatastrophicimpactsofclimatechange.Toachievethis,greenhousegasemissionsmusthalveby2030–anddroptonet-zeroby2050.Businesshasavitalroletoplayindrivingdowngreenhousegasemissionsandbuildingtheresilient,zero-emissionseconomyweurgentlyneed.Thisactionmustbegroundedinscience.Overthelastseveralyears,therehasbeenincreasinginterestfromthecementindustryinsettingscience-basedemissionsreductiontargets.ThisisbecausemanycompaniesunderstandthatGHGemissionsaresignificantforthesectoracrossthevaluechainandwilllikelyincreasegivenindustrygrowth-unlessthesectorchangescourse.Weneedaracetothetop,ledbypioneeringcompaniesacrosstheindustry.Thiswillempowerpeers,suppliersandcustomerstofollowsuitanddrivegovernmentstotakebolderaction.4CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgTheSBTimobilizestheprivatesectortotaketheleadonurgentclimateaction.Science-basedtargetsshowcompanieshowmuchandhowquicklybusinessesneedtoreducetheirGHGemissionstopreventtheworstimpactsofclimatechange-leadingthemonaclearpathtowardsdecarbonization.Byguidingcompaniesinscience-basedtargetsetting,weenablethemtotackleclimatechangewhileseizingthebenefitsandboostingtheircompetitivenessinthetransitiontoanet-zeroeconomy.Science-basedtargetsspecifyhowmuchandhowquicklyacompanywouldneedtoreduceitsgreenhousegasemissionsinordertoalignwiththegoalsoftheParisAgreement-tolimitwarmingtowell-below2°Cabovepre-industriallevels(WB-2°C)andpursueeffortstofurtherlimitwarmingto1.5°C.Thecementsectoristhethird-largestindustrialenergyconsumerandthesecond-largestindustrialCO2emitterandrepresentsabout7%ofCO2emissionsglobally(IEA2018,IEA2020).Cementdemandisprojectedtocontinuerisingandwouldbesome20%higherthantodayby2050intheabsenceofeffortstooptimizeitsuseinbuildingsandconstruction(IEA2020).Forthisreason,urgentactionisneededbycementandconcretecompaniestodecarbonise.Science-basedtargetsallowcompaniestoshowthattheirplansalignwiththelatestclimatescience.2.1OverviewofthedevelopmentprocessAnExpertAdvisoryGroup(EAG)ofdedicatedexpertsfromindustry,NGOsandacademiaprovideddetailedinputduringthedevelopmentofthiscementscience-basedtargetsettingguidanceandtool.EAGmemberswereselectedandinvitedtojointheexpertgroupbasedontheirexpertise,geographiclocation,relationshiptothesectorand,asregardscompanies,ambitiontoaligntheirorganizationwiththelatestclimatescience.EAGmemberorganizations:●Bellona●CementosArgos●Cemex●CRH●DangoteCementPlc●EuropeanClimateFoundation●GlobalCement&ConcreteAssociation(GCCA)●GrupoCementosChihuahua●HeidelbergCement●HolcimLtd.●InstituteforEuropeanEnvironmentalPolicy(IEEP)5CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org●PotsdamInstituteforClimateImpactResearch●RMI●SiamCementPublicCompanyLimited(SCG)●UltraTechCementLimited●VDZ/ECRA●VotorantimCimentos●WWFWeareverygratefulfortheinputandengagementfromallourEAGmembersandprojectsupportteams.TheExpertAdvisoryGroup’sroleisadvisory:finalsign-offfordeliverablesisbytheSBTiSteeringCommittee.OpinionsexpressedwithinthisdocumentmaynotrepresenttheviewsofeveryEAGorganization.FundingforthisprojectwasprovidedbyHolcimLtd.ProvidingfundingdoesnotconferonHolcimLtd.anyspecialpositioninthegovernanceoftheproject.Apublicconsultationwasorganizedfrom16Marchto15April2022togetinputfromindustryandcivilsocietystakeholdersonthisguidancedocumentandaccompanyingtargetsettingtool.Feedbackfrom(NUMBER)stakeholderswasreceivedthroughanonlinesurveyandpublicconsultationwebinarswereheldon16March2022tolaunchthisreviewperiod.6CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org3DEVELOPMENTOFCEMENTDECARBONIZATIONPATHWAYSTocreatetoolsthatcompaniescanusetocalculatescience-basedtargets,threestepsarefollowed:●Theglobalcarbonbudgetanditsallocationtothesectorinquestionisdetermined●Anemissionsscenariodescribingaplausibledecarbonisationtrajectorythatfitswithinthesectorbudgetischosen●TargetsettingmethodssuchastheSectoralDecarbonizationApproachareusedtotranslatethesectorpathwayintocompanytargets.Whydoescementwarrantadedicatedpathwayandtools?Allocationoftheglobalcarbonbudgettosectorsthroughbottom-upmodelssuchasIEA’sNetZeropathwayaimstoarriveatacost-optimalscenarioforemissionsreductionsacrosssectors.Therefore,thesizeoftheallocationtoeachsectordependspartiallyonthedecarbonisationleversavailableandtheircost.CementisalargeindustrialsectorandasignificantsourceofGHGemissions.Unlikesomeothersectors,modelinganddataoncementisavailableinliteratureonemissionsscenarios.Furthermore,duetoitsprocess(geogenic)emissionsfromlimestonecalcinationinclinkerproduction,therateatwhichthesectorcandecarbonisemaydifferfromtheoverallrateofdecarbonisationpossiblebysocietyasawhole.Forthesereasonsadedicatedcementpathwayandspecificguidancetoallowcompaniestosetscience-basedtargets(SBTs)isjustified,ratherthanonlycross-sectormethods.3.1OverviewoftheSectoralDecarbonizationApproach(SDA)TheSectoralDecarbonizationApproach(SDA)isatarget-settingmethodologyallowingcompaniestosetscience-basedgreenhousegasintensitytargetsalignedwithawell-below2°Cscenario1.Essentially,theSDAattemptstoaddressafundamentaltensionincorporatetargetsetting:thatrapiddecarbonizationisincongruentwithindustrygrowth.Forcement,thisuncertaintycouldbeframedas:“Howmuchwouldthecementsector’saveragecarbonintensityneedtodecreaseinordertoachieveParis-aligneddecarbonizationgoalswhilstalsoallowingforprojectedindustrygrowth?”TheSDAanswersthisquestionbyhelpingcompaniesmodelphysicalintensityGHGreductiontargetsthatalignwiththesector-specificpathwayofanunderlyingclimatescenario.TherateofdecarbonizationneededtomeettheParisgoalsisdefinedbyscientificfindingsfromIntegrated1SectoralDecarbonizationApproachReport,20157CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgAssessmentModels(IAMs).Thesemodelsdetailhowaglobalcarbonbudgetshouldbespentovertimeanddividedbysectorbasedonanumberoffactors,including:sectormitigationpotential,socio-economicdrivers,regionalfactorsandtechnologicalavailability.OneoftheoutputsofIAMsisanannualemissionspathwayi.e.,anillustrationofthenecessaryemissionseachsectorcanemitineveryfutureyearinordertobeconsistentwithaspecifictemperatureoutcome.IntheSDA,annualemissionspathwaysaredividedbyforecastedindustryactivitytodefineacarbonintensitycurve.Thesecurvescanhelpcomparethecarbonintensityofanindividualcompanyandthesectoroverall.Forexample,ifacompanyhasahighercarbonintensitythanthesectoraverageitisconsideredtohavelesscarbon-efficientoperationsthanitssectorpeers.TheSDAbuildsuponthecomparisonbetweensector-wideandcompanyintensities.Targetsaresetbyassumingthatallcompaniesconvergetothesameintensitylevelasthesectorbytheyear2050.Science-basedtargetsaresetintheshorttomediumterm(5to10years)alongthisconvergencepath,thesteepnessofwhichisdefinedbytherelativeintensityofthecompanycomparedtothesectorinthebaseyearandtherateofforecastedcompanyactivitygrowth.Thelargertherelativedifference,andthefasterthegrowth,themorestringenttheintensitytargetforanindividualcompany.Figure1:Illustrationofanintensityconvergencepathway-companiesshouldconvergetothesectoraverageintensity(redline)by2050,settingshort-mid-termtargetsalongtheway8CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org3.2Choiceofemissionsscenariosfor1.5ºCTheSBTipublishedanassessmentofpossible1.5ºCemissionsscenariosforallsectorsinitsPathwaystoNet-Zero:SBTiTechnicalSummary(2021).Thisreviewedestimatesoftheremainingemissionsbudget,top-downmitigationscenarios,andsectoralstudiestodetermine1.5ºC-alignedpathwaysattheglobalandsectorallevel.AccordingtotheIPCC,theremainingbudgettolimitglobalwarmingto1.5ºCwitha50%probabilityisabout500GTofCO2(IPCC2021).Inaggregate,1.5ºC-alignedpathwaysusedbytheSBTistaywithinthe500GTcarbonbudgetandreachnet-zeroCO2atthegloballevelby2050,undertheassumptionofatleast1-4GTCO2removalperyearby2050.Withinthisframework,theSBTidevelopedacross-sectoremissionscorridorthatcoversCO2,CH4,andN2Oemissionsfromenergysupply,buildings,industry,andtransportbasedonpublishedstudiesandexpertjudgment.ThePathwaystoNet-Zero:SBTiTechnicalSummarydeterminesthattherangeof1.5ºC-alginedcumulative2020-2050emissionsforcementintheliteratureis35-41GTCO2.Therefore,emissionsscenarioswiththesecumulativeemissions(orlower)couldbeconsideredasapotentialscenariofor1.5ºCSBT-settingbytheSBTi.Emissionsscenariosforscience-basedtargetsettingshouldmeetthecriteriaofplausibility(credibilityofnarrative),responsibility(reducedriskofnotmeetingthe1.5ºCgoal),objectivity(notbiasedtowardsanyparticularindustryororganization)andconsistency(theyshouldhaveastronginternallogic)2.TwosourcesofemissionsscenariosforthecementsectorthatmeettherequirementsdiscussedinthePathwaystoNet-Zero:SBTiTechnicalSummaryaretheOneEarthClimateModel(Teskeetal.2020)andtheIEANetZeroreport(2021).Ofthesetwo,theIEANetZeroreportwaschosenasthemostsuitablescenariofor1.5ºCscience-basedtargetsettingforcementasitprovidesamoredetailednarrativeforhowemissionsreductionsmightbeachieved,lowerresidualemissionsin2050andmoreup-to-datebaseyeardata.Detailsunderlyingemissionsscenario:sectoractivity,decarbonisationleversTheIEANetZeroreportprovidesdatafordirectCO2emissionsfromthecementindustryglobally,aswellasforcementproduction.2FoundationsofScienceBasedTargetSetting9CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgFigure2:Absolutescope1emissionsaccordingtoIEANetZero1.5ºCpathwayfortheglobalcementindustryThisscenarioforcementfromIEAassumesthatoptimisationoftheuseofcementandconcreteisakeylevertoachieveabsoluteemissionsreductionsinthesector.Therefore,demandforcementstaysroughlyflatover2020-2050,despitelargegrowthinbuildingfloorarea.10CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgFigure3:Projectedglobalcementproductionunderthe1.5ºCpathwayInadditiontomoretraditionaldecarbonisationleversalreadybeingimplementedtoday,suchasenergyefficiency,fuelswitching,andclinkersubstitution,theIEANetZeroreportdescribescarboncaptureandstorage(CCS)as“central”tomitigatingprocess(geogenic)emissionsinclinkerproduction.Thereportprovidesa“low-CCS”caseasacomparison,butpointsoutthatsomeotherbreakthroughtechnology,suchaskilnelectrification,wouldbeneededintheabsenceofCCS.All1.5ºCscenariosforcementincludetheneedforunknownorbreakthroughtechnologiestodealwithprocessemissionsfromcement.Thisisashortcomingofallscenarios,inthattheriskofnotmeetingthe1.5ºCaimisincreased.Therefore,measurestomitigatethisriskinadditiontoSBT-settingareincludedinthisguidancedocument.Addressingnon-CO2effectsofcementNon-CO2GHGemissionsfromthecementindustryarenotmaterialtoday(WBCSD2011)andsoitwasnotnecessarytoadjustthepathwaytoaccountforthis.11CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org3.3DefinitionofthesectorcoveredbythepathwayThecementsectoristakentobealargelyhomogenoussectorandthereforeoneunique1.5ºCpathwayissufficient,withnodisaggregationintosub-sectors.Thevastmajorityofcementproductionvolumesandemissionstodayarefrom“traditional”(Portland)cement.Otherclinker-basedcementssuchaswhitecementorcalciumsulpho-aluminatecementalsofitthedefinitionofcementandarecoveredbythesectorpathway.Futuredevelopmentsinlow-emissionsnovelbinders,whileremainingsmallinvolumescomparedtomoretraditionalcementsaccordingtoindustryroadmaps(GCCA2021),maycontributetosectoraverageemissionsreductionsandsoarealsoincludedinthisguidance.SeefurthersectionsinthisdocumentguidanceonwherethecementSDAwouldorwouldnotbeapplicable.Whyistherenopathwayforconcrete?Apathwayforconcreteproduction,ratherthancement,couldhavesomeadvantages,inthatoptimisation/reductionofcementuseinconcretewouldbefullycapturedasakeydecarbonisationleverforcompaniessettingSBTs.However,apathwayoncementismoreappropriateanduseful,forthefollowingreasons:●SBTsaimtocoverlargeemittingcompaniesandsectorsfirst,andthelargestshareofcement/concretesectoremissionscomefromcementproduction.Independentconcreteproducerstendtobesmall,andonlyasmallpartoflargecementcompanies’cementproductiongoesintotheirownconcrete,sofocusingoncementcapturesamuchlargershareofemissions.●TheuseoftheSDAisappropriateforcementsinceprocess(geogenic)emissionsfromlimestonecalcinationinclinkerproductionjustifyasector-specificmethod.Emissionsfromconcreteproductioncomefromfuelsandelectricity,whichcanbecoveredbythecross-sectortargetsettingmethod,i.e.,absolutecontraction.●Dataavailability:availableemissionscenariosbreakthecarbonbudgetintolargeindustrialsectors,wherecement,ratherthanconcrete,istherelevantsector.●OptimisationofcementuseinconcreteandconstructioniscapturedbytheSDAsinceacompany’sgrowthcomparedtotheoveralldemandinthesectorisakeypartofthecalculation.ThismeansthatcompanieswithcementproductionforecasttogrowfasterthantheoverallmarketarerequiredtohaveSBTswithloweremissionsintensity.Thisdocumentincludesguidanceonhowconcreteproduction(byproducersofanysize)shouldbeincludedinSBTs.12CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org3.4SectorcarbonintensitypathwaysTheabovediscussionresultsintheScope1and21.5ºCcementsectorintensitypathwaysasshownintheFigure5andFigure6below,withcomparisontothewell-below2ºCpathways.(Fulldatacanbeaccessedinthetargetsettingtool.DetailsofhowtheScope2pathwaywasderivedcanbefoundinAppendixI.)Figure4:Scope1intensitypathwaysfortheglobalcementindustry13CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgFigure5:Scope2carbonintensitypathwaysfortheglobalcementindustry14CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org4HOWTOSETSCIENCEBASEDTARGETSFORCEMENTANDCONCRETECOMPANIES4.1Overviewoftargetsettingstepsforcompanies1.Decidewhethertosetanear-termtargetonly,oralong-term/net-zerotarget(whichincludesanear-termtarget).2.Decideonbaseandtargetyearsforeachtarget.RulesforthiscanbefoundintheSBTigeneralandNet-ZeroCriteria.3.DetermineifaScope3targetisdesired/required(seesection4.8CriteriaonScope3emissionsforcementcompanies).4.Determinewhichtarget-settingmethodmustbeusedforScopes1,2and3(seesection4.6TARGET-SETTINGMETHODS).5.Collectdataforemissionsandproductionvolumesforbaseyearandmostrecentyear,applyingthecriteriabelowregardingproductdefinitions,emissionsincludedetc.6.Collectdataforproductionforecaststothetargetyear.7.InputthedatafromthepreviousstepsintothetargetsettingtoolstocalculatethereductionsrequiredforavalidtargetforScope1,2,and3.8.DecideontargetwordingaccordingtoSBTigeneralandNet-ZeroCriteriaandSection9.3.1Examplesoftargetwording.9.SubmittargetsandallnecessarydocumentationtotheSBTiforvalidation.4.2Overviewofcement-specificcriteriaandrecommendationsThecriteriabelowaresector-specificcriteriainadditiontotheSBTigeneralandNet-Zerocriteria.“C”designatesacriterion,i.e.itismandatory;“R”designatesarecommendation.TopicCriteria/RecommendationDescriptionScope1and2intensitydenominatordefinitionCement-C1Section4.3.1SDAintensitydenominatorTheintensitypathwayandthereforetargetcalculationsshallbeintermsoftCO2/tcementitiousortCO2/tcement.CementitiousisthepreferreddenominatorThedefinitionfortCO2/tcementitiouscanbefoundintheCementCO2Protocol.15CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgTopicCriteria/RecommendationDescriptionUseofcementSDAbycementcompaniesthatproduceotherproductsCement-C2Section4.6.4UseofcementSDAbycementcompaniesthatalsoproduceotherproductsIfclinkerproductionmakesup≥95%ofacompany’sScope1emissions,thecementSDAmaybeusedfortargetsettingfortheentiretyofthatcompany’sScope1and2emissions.Ifclinkerproductionmakesup<95%ofacompany’sScope1emissions,thecementSDAmaybeusedfortargetsettingfortheScope1and2emissionsfromcementproduction,andtheabsolutecontractionapproachorotherrelevantSDAshallbeusedfortargetsettingforScope1and2emissionsfromotherproductionprocesses.Mandatorynear-termScope3category:fuelsCement-C3Section4.8.1Mandatorynear-termScope3categoryNear-termcementcompanySBTsshallincludeaScope3targetthatcoversatleastScope3Category3“Fuel-andenergy-relatedemissionsnotincludedinscope1orscope2”.Thisshallincludeallfueltypes,includingwaste-derivedandbiomassfuels.TheambitionlevelfortheScope3Category3targetshallbeatleastwell-below2ºC.Thetarget-settingmethodshallbephysicalintensityorabsolutecontraction.Recommendednear-termScope3category:clinkerandcementCement-R1Section4.8.2Recommendednear-termScope3categoryNear-termcementcompanySBTsshouldincludeaScope3targetforpurchasedcementandclinker(underScope3Category1“Purchasedgoodsandservices”).Theambitionlevelshallbe1.5ºC.Thetarget-settingmethodmaybethecementSDA.Emissionsfromwaste-derivedfuelsCement-C4Section4.3.2Emissionsfromwaste-derivedfuels(“gross”and“net”emissions)Targetsshallbeintermsof“gross”emissions,i.e.emissionsfromcombustionofwaste-derivedfuelsinclinkerproductionareincluded,andthisshallbeindicatedinthetargetwording.16CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgTopicCriteria/RecommendationDescriptionEmissionsfrombiomassfuelsCement-C5Section4.3.3BiogenicemissionsCO2emissionsfromthecombustion,processinganddistributionphaseofbioenergyandthelanduseemissionsandremovalsassociatedwithbioenergyfeedstocks,shallbereportedalongsideacompany’sGHGinventory,regardlessofwhetherornotthecombustionisconsideredcarbonneutral.Wherethecombustionofsuchfuelsiscountedascarbonneutral,thisshallbejustified.Emissionsfromprocessing,distribution&landuseassociatedwithbiomassfuelsshallbecalculatedandincludedunderScope3Category3“Fuel-andenergy-relatedactivities(notincludedinscope1orscope2)”targetswhenrelevant,regardlessofwhetherornotthecombustionisconsideredcarbonneutral.NaturalrecarbonationCement-C6Section6.1NaturalrecarbonationNaturalrecarbonationshallnotbecountedasanemissionsreductioninScope1,2or3targets.IndustrialmineralisationCement-C7Section6.2IndustrialmineralisationEmissionsfromclinkermanufacturethatarereduceddirectlythroughindustrialmineralisationmaybecountedasanemissionreductiontowardsacementcompany’sScope1target.Industrialmineralisationthatdoesnothappenonaclinkerproductionsiteshallnotbecountedasanemissionreductiontowardsacementcompany’sScope1target.CarboncaptureandgeologicalstorageCement-C8Section6.3.2CCSandBECCSincementplantsEmissionsreducedthroughcarboncaptureandgeologicalstoragemaybecountedasanemissionreductionincementcompanynear-termandlong-termSBTs.17CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgTopicCriteria/RecommendationDescriptionCarboncaptureanduseforshort-livedproductssuchase-fuelsCement-C9Section6.3.1CCUotherthanindustrialmineralisationCO2capturedforuseinshort-livedproductssuchase-fuelsshallnotbecountedasanemissionreductionincementcompanynear-termorlong-termSBTs.ForecastgrowthCement-C10Section9.2JustificationofprojectedgrowthThecompanyshallprovide,intheirtargetsubmission,justificationofthegrowthprojectionusedtocalculatethetargetusingtheSDA,includingpublicorinternaldocumentswheregrowthprojectionsarementionedifrelevant.InvestmentinbreakthroughtechnologiesCement-R2Section9.1Ensuringnear-termtargetscontributetolong-termprogressCementcompaniesshouldprovideevidence,intheirtargetsubmission,thattheyaretakingactiontoensureanybreakthroughtechnologyrequiredtomeettheirtargetambitionwillbecomeavailableinthetimeframeexpected.InformationonabsoluteemissionsreductionsCement-R3Inordertodemonstratethatintensitytargetsalsoleadtoabsoluteemissionsreductions,andtoprovidethetransparencyrequiredbyCement-C10andCement-R2,companieswhosetargetsareexpressedinintensitytermsarerecommendedtopublishalsotheabsoluteemissionsreductionsthatwillbeachievedbytheirtargets.4.3GHGaccountingrulesAllgreenhousegasaccountingfortargetsettingshallfollowtheGHGProtocolCorporateAccountingandReportingStandardandCorporateValueChain(Scope3)Standard.18CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgFurtheraccountingdefinitionsforcementcanbefoundintheCementCO2Protocol.4.3.1SDAintensitydenominatorTheintensitypathwayfortheSDAandthereforeScope1and2targetcalculationsshallbeintermsoftCO2/tcementitiousortCO2/tcement(equivalent).ThedefinitionshallbeaccordingtotheCementCO2Protocolv3.0(2011).Cementitiousisthepreferreddenominator.“Cement”isalsoanacceptabledenominatorwherenonon-cementmaterialsarebeingprocessedandsocementandcementitiousareeffectivelythesame.Inthiscase,careshouldbetakentoexcludepurchasedclinkerfromtheScope1denominatortoavoiddouble-countingwithScope3.4.3.2Emissionsfromwaste-derivedfuels(“gross”and“net”emissions)Thereexistcement-industrydefinitionsfor“gross”and“net”emissionsthatdistinguishwhetherornotemissionsfromcombustionofwaste-derivedfuelsareincluded.ThesedefinitionscanbefoundintheCementCO2Protocolv3.0(2011).Near-andlong-termtargetsshallbeintermsof“gross”emissions,i.e.,emissionsfromcombustionofwaste-derivedfuelsshallbeincludedintheemissionscoveredbyScope1forallyears.Thisshallbeindicatedinthetargetwording(seeSection9.3.1Examplesoftargetwording).“Net”emissions,i.e.,excludingemissionsfromthecombustionofwaste-derivedfuelsinclinkerproduction,arenotacceptableasthebasisfortargetsetting,as“avoidedemissions”cannotcountasemissionsreductionsinSBTs.4.3.3BiogenicemissionsAccordingtoSBTiCriteria,CO2emissionsfromthecombustion,processinganddistributionphaseofbioenergyandthelanduseemissionsandremovalsassociatedwithbioenergyfeedstocks,shallbereportedalongsideacompany’sGHGinventory.Furthermore,CO2emissionsfromthecombustion,processinganddistributionphaseofbioenergyandthelanduseemissionsandremovalsassociatedwithbioenergyfeedstocksshallbeincludedinthetargetboundarywhensettingascience-basedtarget(inScopes1,2,and/or3,asrelevant)andwhenreportingprogressagainstthattarget.Bioenergyusedinthecementindustryistypicallythebiomasspartofwaste-derivedfuels,e.g.therubberinusedtyres,butitcanalsoinclude“virgin”biomass.19CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgInpractice,cementcompaniesoftenincludeemissionsfrombioenergyintheirtargetsubmissionsbutdeclare(thecombustionpartof)theseemissionsascarbonneutral.Companiessubmittingtargetsshallrobustlyjustifywhentheytreatbiomassfuelascarbonneutral.Thefollowingguidance/standardsmaybereferredto:●CementCO2Protocolv3.0(2011)●ISO21644–MeasuringtheBiomassContentofSolidRecoveredFuels(SRF)(ISO2021)Ifconditionstojustifybiomasscombustionascarbonneutralcannotbemet,combustionofbiomassfuelsshallbeincludedinemissionsinventoriesforbaseandtargetyears.Itisnotedthatthesustainabilityandcarbonneutralitystatusorotherwiseofbiomassfuelsissubjecttocontinuingscrutinyandincreasinglystrictaccountingrequirements,andsotargetsshallbecalculatedtakingintoaccountthemostup-to-datestandardsandguidance.Ifindoubt,aconservativeapproachofnotassumingcarbonneutralityofbiomassshallbetaken.Emissionsfromprocessing,distribution&landuseassociatedwithbiomassfuelsshallbecalculatedandincludedunderScope3Category3“Fuel-andenergy-relatedactivities(notincludedinscope1orscope2)”targetswhenrelevant,regardlessofwhetherornotthecombustionisconsideredcarbonneutral.Wherebioenergyisusedincombinationwithcarboncaptureandstorage(BECCS),thismaybeaccountedforinSBTsaccordingtotheprecedingparagraphs,butshallinnocasebecountedas“netnegative”emissions(i.e.,bioenergyemissionsmustalwaysbegreaterthanorequaltozero).4.3.4Non-CO2GHGsTheGHGProtocolaswellastheSBTiCriteriarequirethatallrelevantGHGsbeincludedintheemissionsinventory.However,non-CO2GHGstendnottobematerialinclinkerproductionwhencomparedtoCO2(WBCSD2011)3.Toeasethevalidationprocess,cementcompaniesmayrefertotheCementCO2Protocoltojustifyexclusionofnon-CO2GHGsfromtheirinventorywithregardtoclinkerproduction.Fornon-clinker-kilnemissions,theCementCO2ProtocolsuggeststhatCH4andNO2mayberelevant,andsocompaniesshouldincludetheseorjustifytheirexclusion.Asthesourcesquoteddatefrom2011,shouldnon-CO2GHGbecomemorerelevantinthecementindustryinthefuture,thisrecommendationmayberevised.3CH4emissionsof0.01%ofkilnCO2emissionsonaCO2-equivalentbasis,“small”emissionsofnitrousoxide(N2O)fromcementkilnsand“notrelevantemissions”ofPFC,HFC,SF6(WBCSD2011).20CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org4.4Near-termandlong-termtargetsAnear-termtargethasatimeframeof5-10years.Along-termtargetisatargettoreachtheresidualemissionslevelby2050atthelatest,andcommittoneutralizingtheseresidualemissionstoreachnet-zero.Along-termtargetmustincludeanear-termcomponent,whereasanear-termtargetcanbesetwithoutalong-termcomponent.FullcriteriaandexplanationscanbefoundintheSBTiNet-ZeroStandardandCriteria.4.5ScopesrequiredGeneralcriteriaonthescopesrequiredissetoutintheSBTiCriteriaandNet-ZeroStandardCriteria.Insummary:●Fornear-termtargets:○Scope1and2mustbeincluded.○Ifacompany’srelevantscope3emissionsare40%ormoreoftotalscope1,2,and3emissions,ascope3targetisrequired.○Allcompaniesinvolvedinthesaleordistributionofnaturalgasand/orotherfossilfuelsshallsetscope3targetsfortheuseofsoldproducts,irrespectiveoftheshareoftheseemissionscomparedtothetotalscope1,2,and3emissionsofthecompany.○Near-termcementcompanySBTsshallincludeaScope3targetthatcoversatleastScope3Category3“Fuel-andenergy-relatedemissionsnotincludedinscope1orscope2”.○Near-termcementcompanySBTsshouldincludeaScope3targetforpurchasedcementandclinker(underScope3Category1“Purchasedgoodsandservices”)●Forlongterm(net-zero)targets:Scope1,2and3mustbeincluded.TheadditionalcriteriaonScope3fornear-termtargetsinthecementsectoraredescribedinSection4.8CriteriaonScope3emissionsforcementcompanies.21CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org4.6Target-settingmethods4.6.1Target-settingmethodsforScope1CompaniesmayuseeitherthecementSectoralDecarbonisationApproach(SDA)orthecross-sectorAbsoluteContractionApproachtosetScope1targetsforcementproduction.FortheuseofthecementSDAtobepermitted,theScope1emissionstobecoveredmustarisefromclinkerproduction.TheSBTirecommendsusingthemostambitiousdecarbonizationscenariosthatleadtotheearliestreductionsandtheleastcumulativeemissions.4.6.2Target-settingmethodsforScope2CompaniesinthecementsectormayuseeitherthecementSectoralDecarbonisationApproach(SDA)orthecross-sectorAbsoluteContractionApproachtosetScope2targets.FortheuseofthecementSDAtobepermitted,theScope1emissionstobecoveredmustarisefromclinkerproduction.Targetstoactivelysourcerenewableelectricityataratethatisconsistentwith1.5°CscenariosareanacceptablealternativetoScope2emissionreductiontargets(seeSBTiCriteria).4.6.3Target-settingmethodsforScope3Scope3near-termtargetsmaybesetusingoneoffiveapproaches:AbsoluteContraction,EconomicIntensity,PhysicalIntensityConvergence(SDA),PhysicalIntensityContractionorsupplierengagement.Scope3long-termtargetsmaybesetusingoneoffourapproaches:AbsoluteContraction,EconomicIntensity,orPhysicalIntensityConvergenceorPhysicalIntensityContraction.GeneralrulesarefoundintheSBTiCriteriaandNet-ZeroStandardCriteria.Ifphysicalintensitycontractionischosen,anappropriatedenominatorthatisrelevanttothetargetshouldbechosen.DenominatorsthatarelikelytovarysignificantlywithnolinktotherealdecarbonisationoftheScope3categoryshouldbeavoided,asthisrisksgivingtheimpressionofprogresstowardstargetswherenorealefforttodecarbonisehasbeenmade.22CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgSomeexamplesforthecementcouldsectorinclude:Scope3targetcoveragePhysicalintensitydenominatorexamplesPurchasedcementandclinkerIfcementSDAused:●Purchasedcementorcementitious(t)Ifothertarget-settingmethodsused:●Purchasedcementandclinker(t)●Producedcement(t)Upstreamemissionsfromfuels●Purchasedfuels(MJ)●Producedcement(t)Downstreamtransport(distribution)●Producedcement(t)4.6.4UseofcementSDAbycementcompaniesthatalsoproduceotherproductsForacompanythatproducescement,butalsootherproducts,thecementSDAmaybeusedfortargetsettingfortheentiretyofthatcompany’sScope1and2emissionsifclinkerproductionmakesup≥95%ofthecompany’sScope1emissions.Ifclinkerproductionmakesup<95%ofacompany’sScope1emissions,thecementSDAmaybeusedfortargetsettingfortheScope1and2emissionsfromcementproduction,andtheabsolutecontractionapproachorotherrelevantSDAshallbeusedfortargetsettingforScope1and2emissionsfromotherproductionprocesses.4.7Combined-scopetargetsTargetsthatcombinescopes(e.g.,1+2,1+2+3)arepermittediftheSBTicanreviewtheambitionoftheindividualcomponentsofthetargetandconfirmthateachindividualcomponentmeetstherelevantambitioncriteria.SeeSBTiCriteriaandNet-ZeroStandardCriteria.Scope1and2near-termtargetsusingthecementSDAmaybesetseparately,oracombinedtargetmaybeset.TheSBTtoolallowsforthecalculationofsuchcombinedtargets.CombinedScope1and2intensitytargetsarecalculatedagainstacombinedsectorconvergencepathway;thereforethesetargetswillbeslightlydifferentfromthesumofScope1andScope2intensitytargetscalculatedseparately.23CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org4.8CriteriaonScope3emissionsforcementcompanies4.8.1Mandatorynear-termScope3categoryNear-termcementcompanySBTsshallincludeaScope3targetthatcoversatleastScope3Category3“Fuel-andenergy-relatedemissionsnotincludedinscope1orscope2”.Thisshallincludeallfueltypes,includingwaste-derivedandbiomassfuels.TheintroductionofthismandatorycriterionaimstoharmonizewithSBTmethodsforothersectorssuchastransport,whichusea“Well-to-Wheel”approachwherebyupstreamemissionsassociatedwithextraction,refininganddistributionoffuelsareincluded.TheambitionlevelfortheScope3Category3targetshallbeatleastwell-below2ºC.Thetarget-settingmethodshallbephysicalintensityorabsolutecontraction.ThesemethodscanbefoundintheSBTtool.Theambitionlevelsareasfollows(seeSBTiCriteriav5.0andTargetValidationProtocolforNear-termTargetsv3.0):Well-below2ºC1.5ºCPhysicalintensity7%peryear7%peryearAbsolutecontraction2.5%peryear4.2%peryearForexample,aphysicalintensitywell-below2ºCcategory3targetcouldbeformulatedas:“CompanyXcommitstoreducescope3GHGemissionsfromfuelandenergyrelatedactivities70%pertonneofpurchasedfuelsby2030froma2020baseyear.”4.8.2Recommendednear-termScope3categoryNear-termcementcompanySBTsshouldincludeaScope3targetforpurchasedcementandclinker(underScope3Category1“Purchasedgoodsandservices”).Theambitionlevelshallbe1.5ºC.Thetarget-settingmethodmaybethecementSDA(theSDAmaybeusedalsoforpurchasedclinker).Theintroductionofthisrecommendationaimstoensurethesameambitionlevelforboughtclinkerandcementasforthatmanufacturedbythecompany.Itreducestheriskof“scopeleakage”,wherebyacompanythatshiftstobuyingmoreclinkerorcementratherthanproducingitwouldseeitsScope1emissionsfallbutnocorrespondingriseinScope3emissionscoveredbyatarget.Italsoencouragesmoresimilartargetboundariesbetweencompaniesthatmostlybuytheirclinkerorcementandthosethatmostlymanufactureit.24CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org5GUIDANCEFORCALCULATINGSCOPE3EMISSIONSWhereaScope3targetisrequired,GHGProtocolrulesmustbefollowedincalculatingScope3emissions.KeyguidanceforcalculatingScope3emissionsaretherefore:●GHGProtocol●Greenhousegasprotocolcorporatevaluechain(scope3)accountingandreportingstandardTheWBCSDCementSectorScope3GHGAccountingandReportingGuidancegivesmoredetailedguidancespecificallyonthecementsector.SinceemissionsforScope3Category1“Purchasedgoodsandservices”mustincludeallupstreamemissionsforgoodspurchased(i.e.,cradletogate),thismeansthatcareshouldbetakenthatallupstreamlifecycleemissionsofpurchasedgoodssuchasclinkerandcementmustbeincluded.Inotherwords,notonlydirectemissionsfromthesegoodsareincluded,butalsotheirupstreamemissions.Calculatingupstreamemissionsofpurchasedgoodsisachallengeinallsectors,andfortunatelyvaluechainsinthecementandconcreteindustryarerelativelyshort,makingthiscalculationcomparativelyeasierthaninothersectors.WidelyacceptedLCAstandardsforconstructionproductssuchasEN15804“Sustainabilityofconstructionworks.Environmentalproductdeclarations.Corerulesfortheproductcategoryofconstructionproducts”(CEN2019)shouldbefollowedinthecalculationofcradle-to-gateemissions.ToolsforcalculationofScope3emissionsinclude:●GCCAEPDtoolforcementandconcrete●GHGProtocolScope3evaluatortool25CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org6GUIDANCEONSOMECEMENT/CONCRETE-SPECIFICPROCESSES6.1NaturalrecarbonationNaturalcementrecarbonation(alsoknownascarbonation)isthephenomenonwherebyconcreteandothercement-basedproductsnaturallyabsorbCO2fromtheair.Formostconcrete,theCO2absorbedisusuallyverylowrelativetotheCO2emittedduringcementproduction,butonaggregate,canreachnotinsignificantamounts.CO2uptakethroughrecarbonationcanbecalculatedinalife-cycleassessmentcontextbutisnotcurrentlyincludedincorporateGHGaccountingmethods,emissionstrading,norinIEAfigures.Naturalrecarbonationisoutsideofthecontrolofthecementorconcreteproducerasitdependsonhowtheproductisusedbeyondthefactorygate.NaturalrecarbonationshallnotbecountedasanemissionreductioninSBTsofcementorconcretecompanies.SeeAppendixIIforamoredetaileddiscussionofrecarbonationinthecontextofSBTs.6.2IndustrialmineralisationSeveralindustrialprocessesexistorareindevelopmenttotakeadvantageoftheCO2uptakepotentialofcement-basedproducts,suchas:●CO2injected/absorbedduringthemanufactureofready-mixorprecastconcrete●Treatmentofconcretedemolitionwaste,spentlimeetc.toabsorbCO2tocreateaggregatesproductsTheseprocessesareknownbydifferentnames,suchas“accelerated”or“enhanced”carbonation,ormineralisation.Theterm“industrialmineralisation”isusedheretodistinguishitfromnaturalrecarbonation.SuchCO2absorptionisconsideredpermanent,astoreversethechemicalreactionwouldrequirelargeamountsofheat.WheretheCO2usedisindustriallycaptured,orcomesfromdirectaircapture,suchprocessescanpotentiallybeanemissionsreductionleverandshouldbeencouraged.However,todate,insufficientstandardsandguidanceexisttoguaranteethattheseactivitiesrepresentrealemissionreductioninallcases,andhowtoincentivisecorrectlysuchactivitiesisstillthesubjectofscientificandpoliticaldebate(ETIPZEP2021).Thisisanareaforfurtherwork.Given26CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgthis,thisguidancedocumentintroducesjustonecasewhereindustrialmineralisationmaybecountedasanemissionreductioninSBTs,withtheothercasesremainingoutofscopeuntilfurtherworkisconducted.SomeofthesemaybethesubjectofworkintheSBTi’supcoming‘BeyondValueChainMitigation’project.TypeofindustrialmineralisationactivityChallengesforGHGaccountingCanbeincludedasanemissionreductioninSBTsCanbeincludedasBeyondValueChainMitigationCementcompanycapturingCO2andmineralisingitonsiteNoYesNotnecessaryifitisincludeddirectlyinthecompany’sSBTCementcompanycapturingCO2andtransportingitformineralisationonanothersitewithinthesamecompanyCaptureefficiency,guaranteesoftransport,noleakageetc.Notcurrently-butthisprincipleshouldbedevelopedfurtherNotnecessaryifitisincludeddirectlyinthecompany’sSBTCementcompanycapturingCO2andsellingitformineralisationbyanothercompanyHowtosharethebenefitofCO2reductionbetweentwocompanies;guaranteesoftransport,noleakageetc.NoGuidancewillneedtobedevelopedtodetermineinwhatcasessuchusehasaclimatebenefit,dependingonthesourceoftheCO2ConcreteorothercompanybuyingCO2andusingitformineralisationHowtosharethebenefitofCO2reductionbetweentwocompanies;Guaranteesoftransport,noleakageetc.NoGuidancewillneedtobedevelopedonwhethersuchusehasaclimatebenefitdependingonthesourceoftheCO227CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org6.3CCU,CCSandBECCSFurtherguidanceonthefollowingtopicsisduetobedevelopedinSBTi’supcomingworkonBeyondValueChainMitigation,andsogeneralprinciplesonlyaregivenhere.6.3.1CCUotherthanindustrialmineralisationSpecificcriteriaforonecategoryofcarboncaptureanduse(CCU)-industrialmineralisation-areprovidedabove.ForothertypesofuseofcapturedCO2,suchasinchemicals,e-fuelsorothershort-livedproducts,thiscannotbecountedasanemissionsreductioninnear-termorlong-termSBTs.6.3.2CCSandBECCSincementplantsCarboncaptureandpermanentgeologicalstorage(CCS)may,inprinciple,becountedasanemissionreductionincementcompany’snear-termandlong-termSBTs.Furtherguidanceonthisshouldbethesubjectoffurtherwork,todeterminethecaptureefficiency,potentialforleakageintransport,andthepermanenceofstorage.Wherebioenergyisusedincombinationwithcarboncaptureandpermanentgeologicalstorage(BECCS),thismaybeaccountedforinSBTsaccordingtotheprecedingparagraphandSection4.3.3Biogenicemissions,butshallinnocasebecountedas“netnegative”emissions(i.e.bioenergyemissionsmustalwaysbegreaterthanorequaltozero).6.3.3DirectaircaptureandBECCSoutsidevaluechainOnceacompanyhasmetitslong-termSBTs,whichensuresthatithasreachedaresidualemissionslevel,thenet-zerotargetcanbeachievedthroughfurtheremissionsreductionsinscopes1,2and3,orpermanentremovalsinsideoroutsidethevaluechain.Thismayincluderemovalsfromdirectaircaptureorbioenergy,carboncaptureandstorage(BECCS).Inotherwords,suchremovalsdonotcounttowardsemissionsreductionsneededtoreachtheresiduallevelofalong-termSBTbutmaybeusedtoneutralizeresidualemissionstoreachnet-zero.6.4OptimizingcementuseinconcreteandbuildingsAkeylevertoreduceglobalGHGemissionsfromcementisdemandreduction,throughtheoptimisationofcementuseinconcrete,andconcreteuseinbuildingsandstructures(GCCA2021,IEA2021).However,evenifcementcompaniescanhavearoleinbringingaboutthisoptimisation(throughtheirownverticalintegrationintoconcreteproductionorconstruction,orthroughworking28CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgwithclientstoofferproductsandservicesthatoptimizecementuse),theseeffortswillnotnecessarilybevisibleinSBTsastheseareexpressedintermsoftCO2/tcementorcementitious.Therefore,cementcompanieswishingtodemonstrateprogressthroughthisdecarbonisationlevershouldconsideralsopublishingtheproductionvolumesassociatedwiththeirtarget.CementcompaniesmayalsoconsiderpublishingabsolutereductionSBTs,wheredemandoptimizationwouldbecomeaclearleverinreducingemissionstomeetthetarget.7GUIDANCEONTARGETSETTINGFORDIFFERENTTYPESOFCOMPANIES7.1GuidanceforincludingconcreteproducedbycementcompaniesinSBTsForacompanythatproducescement,butalsootherproducts,thecementSDAmaybeusedfortargetsettingfortheentiretyofthatcompany’sScope1and2emissionsifcementproductionmakesup≥95%ofthecompany’sScope1and2emissions.Ifcementproductionmakesup<95%ofacompany’sScope1and2emissions,thecementSDAmaybeusedfortargetsettingfortheScope1and2emissionsfromcementproduction,andtheabsolutecontractionapproachorotherrelevantSDAshallbeusedfortarget-settingforScope1and2emissionsfromotherproductionprocesses.Thismeansthatforacementcompanythatproducesconcretewheretheemissionsfromthisactivityaresignificant(>5%),theabsolutecontractionmethod,attheambitionlevelof1.5ºC,shallbeusedtocalculatethepartoftheScope1and2targetscoveringtheemissionsfromfuelsandelectricityusedinconcreteproduction,whiletheSDAshallbeusedforthepartofthetargetcoveringcementproduction.SeeSection8.1onhowtargetscalculatedusingtwodifferenttargetsettingapproachesmaybeaggregatedintoonetarget.CriteriaandrecommendationsaboutwhenaScope3targetmustbesetinSection4.8CriteriaonScope3emissionsforcementcompaniesshallbefollowed.7.2Guidancefornon-clinker-producingcementcompaniestosetSBTsThiscasewouldapply,forexample,toacompanythatdoesnotproduceitsownclinkerbutbuysclinkerand/orcementand/orotherconstituentsandblendsthemtosellascement,cementsubstitutes(suchasGGBS,groundgranulatedblast-furnaceslag),orcement-likeproducts(e.g.,geopolymers).29CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgInthiscase,aScope3near-termtargetwouldoftenberequired,asemissionsfrompurchasedcementorclinkeralonewouldoftenbeabovethethresholdof40%oftotalScope1,2and3emissions.TheSBTigeneralcriteriaapply,withtheadditionalrequirementthattheambitionlevelforpurchasedcementorclinkershallbe1.5ºC.Theemissionsandtarget-settingmethodsforsuchacompanywouldbeasfollows:ScopeEmissionscovered(examples)Target-settingmethodfornear-termSBTsScope1Directemissionse.g.fromburningoffuelsAbsolutecontractionScope2ElectricityAbsolutecontractionScope3PurchasedclinkerorcementSDAorabsolutecontraction,ambitionlevel1.5ºCPurchasedfuelsAbsolutecontractionorphysicalintensity,ambitionlevelwell-below2ºCOtherScope3emissionsAllScope3methodsallowed,ambitionlevelwell-below2ºCNote:forpurchasedclinker,thecementSDAmaybeusedtocalculatetargets.7.3Guidancefornon-clinker/cement-producingconcretecompaniestosetSBTsThiscasewouldapply,forexample,toacompanythatdoesnotproduceitsowncementorclinkerbutpurchasescement,aggregatesandotherconstituentstoproduceconcrete.Inthiscase,aScope3near-termtargetwouldgenerallyberequired,asemissionsfrompurchasedcementorclinkeralonewouldbeabovethethresholdof40%oftotalScope1,2and3emissions.TheSBTigeneralcriteriaapply,withtheadditionalrequirementthattheambitionlevelforpurchased30CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgcementorclinkershallbe1.5ºC.Theemissionsandtarget-settingmethodsforsuchacompanywouldbeasfollows:ScopeEmissionscovered(examples)Target-settingmethodfornear-termSBTsScope1Directemissionse.g.,fromburningoffuelsAbsolutecontractionScope2ElectricityAbsolutecontractionScope3PurchasedclinkerorcementSDAorabsolutecontraction,ambitionlevel1.5ºCPurchasedfuelsAbsolutecontractionorphysicalintensity;ambitionlevelwell-below2ºCOtherScope3emissionsAllScope3methodsallowed;ambitionlevelwell-below2ºCNote:forpurchasedclinker,thecementSDAmaybeusedtocalculatetargets.7.4GuidanceforotherpotentialusersofcementSDA:e.g.,constructioncompaniesEmissionsfromthemanufactureofcementmayberelevantScope3emissionsforcompaniesinthebuildingsandconstructionvaluechain.Forexample:●Constructioncompanies:emissionsfrompurchasedcementfallunderScope3Category1“Purchasedgoodsandservices”●Architectsandbuildingdesignfirms:emissionsembodiedinconstructionmaterialsforbuildingsdesignedfallunderScope3Category11“Useofsoldproducts”FurtherguidanceonscopeallocationforthebuildingsectorwillbeprovidedintheupcomingSBTibuildingsectorguidance.Inprinciple,thecementSDA,ratherthanthegenericScope3methods,canbeusedforScope3targetsettingwheretheemissionsconcernedarefromcementmanufacture.31CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgHowever,asoptimization(reduction)oftheuseofcementandconcretecanbeakeyleverforreducingScope3emissionsforthesetypesofcompanies,target-settersshouldensurethetarget-settingmethodreflectsthis.Therefore,anabsolutetargetmaybemoreappropriatethananintensity(tCO2/tcement)target.8USINGTHETARGETSETTINGTOOLSNear-termtarget-settingtoolThedrafttarget-settingtoolislaunchedalongsidethispublicconsultationdraftguidance,whichintegratesthe1.5ºCpathwaysbutisotherwiseunchangedinfunctionalityfrompreviousversions.Long-termtarget-settingtoolThelong-termtargettoolisfoundhereandcontainsinstructionsforcalculatinglong-termtargets.8.1CombinedandseparatetargetsIngeneral,combined-scopetargets,andtargetsthatareanaggregationofdifferenttarget-settingmethods,arepermittedonlywherethefollowingconditionsaremet:●Dataissubmittedforvalidationthatallowstheambitionlevelofeachscopeorelementtobecheckedseparately●Aggregationistechnicallyfeasiblee.g.twodifferentSDA-basedtargetssuchastCO2/tcementandtCO2/tsteelcannotbeaggregatedasthedenominatorsaredifferent,whereastwoabsolutetargetscouldbeaggregatedintoone.Noteforconsultationdraft:ThissectionistobeexpandedwithfurtherexamplesfromEAG.Thefollowingexamplesareprovidedfornear-termtargets,butthesameprinciplesapplyforlong-termtargets.Exampleofcompanyproducingcementandotherproductswherenon-clinkeremissionsmakeup≤5%CompanyXproduces10mtofcementand2mm3(4.8mt)ofconcreteannually:●Scope1emissionsfromclinkerproduction:6.5mtCO2or99.7%oftotalScope1●Scope1emissionsfromconcrete:0.02mtCO2or0.3%oftotalScope1●Baseyearis2020andtargetyearis203032CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgTherefore,thiscompanymayusethecementSDAfortheentiretyofitsScope1&2emissions.Intherow“BaseyearActivityoutput”,thecompanyshouldenteritsactivitydataforcement/cementitiousonly(tcement).Intherows“BaseyearScope1emissions”and“BaseyearScope2emissions”,thecompanyshouldenteritstotalScope1and2emissionsrespectively,includingcementandconcreteproduction.Results:Exampleoncompanyproducingcementandotherproductswherenon-clinkeremissionsmakeup>5%CompanyYproduces10mtofcementand0.5mtofotherproductsannually:●Scope1emissionsfromclinkerproduction:6.5mtCO2or96%oftotalScope1●Scope1emissionsfromotherproducts:0.5mtCO2or7.7%oftotalScope1●Baseyearis2020andtargetyearis2030Therefore,thiscompanymayusethecementSDAonlyforitscementScope1&2emissionsandmustuseabsolutecontractionforitsotherproductemissions.Thecompanycalculatestwoseparatetargets.33CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgCementemissions:Results:Otherproductemissions:Thecompanycanthenchoosetopublishtheseasaggregatetargetsorasseparatetargets.34CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgToaggregatetargetscalculatedusingtheSDAandabsolutecontraction,intensity-basedtargetsmustbeconvertedtoabsoluteemissions.Therefore,twooptions4forpublishingtargetsinthisexamplewouldbe:Baseyearemissions(tCO2)Targetyearemissions(tCO2)%reductionintensity%reductionabsoluteExampletargetwordingOption1CementS1+2target7,000,0005,509,91021.3%-CompanyYcommitstoreduceScope1&2GHGgrossemissions21.3%pertonnecementitiousmaterialsby2030froma2020baseyearOtherproductsS1+2target525,000304,500-42%CompanyYcommitstoreduceabsoluteScope1&2GHGemissionsfromnon-cementproduction21.3%by2030froma2020baseyearOption2AggregatedS1+S2target7,525,0005,814,410-22.7%CompanyYcommitstoreduceabsoluteScope1&2GHGemissions22.7%by2030froma2020baseyearExampleofcompanyproducingcementsubstitutes,geopolymersandcementCompanyZproduces0.5mtofGGBS,0.1mtofgeopolymersand0.5mtofcementannually.Thecompanydoesnotproduceitsownclinker.●Scope1emissions(50,000tCO2)comefromfuelsusedinblending,dryingetc.●Scope2emissions(50,000tCO2)arefromelectricity.●Scope3emissions(350,000tCO2)aregreaterthan40%ofScope1,2and3andcomemostlyfromcradle-to-gateemissionsofpurchasedclinkerforblendingintocement(325,000tCO2),aswellascradle-to-gateemissionsofotherrawmaterialsandfuelsforallproducts(25,000tCO2).●Baseyearis2020andtargetyearis2030AbsolutecontractionshallbeusedforScope1and2emissions.4TheoptionofseparateScope1and2targetsalsoexistsbutisnotshownhere.35CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgThecementSDAorabsolutecontractionmaybeusedforScope3purchasedclinker.AllScope3target-settingmethodsmaybeusedforotherScope3emissions.Careshouldbetakentoincludeallupstreamemissions(cradle-to-gate)forScope3rawmaterialsandfuels,Inthisexample,thecompanydecidestouseabsolutecontractionforScope1and2,thecementSDAforScope3purchasedclinker,andphysicalintensityforallotherScope3emissions.Inthiscase,fortransparencyaboutthedifferentdenominatorsused,thetwoelementsoftheScope3targetcannotbeaggregatedandmustbekeptseparate.9SUBMITTINGATARGETFORVALIDATIONCompaniesshouldfollowthegeneralSBTiguidelinesforsubmittingatargetforvalidation.Thefollowingsectionsincludesomeadditionalcriteriaandrecommendationsforcementcompanies.9.1Ensuringnear-termtargetscontributetolong-termprogressCementindustrydecarbonisationroadmaps,aswellastheIEANetZeroReport,relyonbreakthroughtechnologiessuchasCCSthatdonotyetexistatscaletomitigatealargepartofemissionsfrom2030onwards(GCCA2021,IEA2021).Thisisofconcernforscience-basedtargetsettingifacompanyonlysetsnear-term(5-10year)targets,asitmeansthatacompany’snear-termtargetcouldbevalidatedifitislowenoughtomeetthe1.5ºCrequirementsforthetargetyearaccordingtothecementSDA,evenifthecompanyhasnoviableplantoimplementCCSorotherbreakthroughtechnologyintheyearsthereafter.Thisriskscreatingacredibilityissueinclaimingsuchtargetsarescience-based,i.e.thattheycontributetosocietymeetingthe1.5ºCgoal.ItisbeyondthescopeofSBTi’scurrentvalidationprocess5tosetadditionalqualitativerequirementsfortargetstobevalidated,butcompaniesareexpectedtoprovideanexplanationonhowtheyintendtomeettheirtargets.Todealwiththerisksdescribedabove,cementcompaniessubmittingnear-termorlong-termtargetsareencouragedtoprovideevidencethatthecompanyisinvestingnowtoprepareforimplementingnewtechnologyaspartofaplantoreachnet-zero.Suchevidencecouldinclude:●Publishedplanstobeoperatingatleastoneindustrial-scaleCCSplantbythenear-termtargetyearorbefore,includingdetailsonhowthecapturedCO2willbetransportedandstored.●PublishedR&Dspendinbreakthroughtechnologies.5SBTi’supcomingprogress-trackingprojectmaydevelopsolutionstosomeoftherisksdiscussedhere.36CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org●Assessmentof“readinessfornet-zero”byotherthirdpartyinitiatives,suchasACT.9.2JustificationofprojectedgrowthStakeholdershavepointedoutcasesofcementcompanieshavingverydifferentgrowthprojectionstothoseusedintheirtargetcalculation.Correctgrowthprojectionisimportanttoensurethatabsoluteemissionsdonotexceedthecarbonbudget.TheSDAcalculationincludesacorrectiontotheemissionsintensitypathwayifacompany’sgrowthforecastisgreaterthanthatrequiredbytheindustryasawhole,sofaster-growingcompaniesmustreducetheiremissionsintensityfaster.Therefore,companiessubmittingtargetsshallprovide(confidentially)justificationforthegrowthforecastusedintheirtargetsubmission,includingpublicorinternaldocumentswheregrowthprojectionsarementionedifrelevant.Asanalternative,voluntary,safeguard,companiesmaywishtomakepublictheabsoluteemissionsthattheirintensitytargetwouldleadto,sothatstakeholderscanseethatitleadstoabsolutereductions.9.3Communicatingatarget9.3.1ExamplesoftargetwordingThissectionistobeexpandedwithfurtherexamplesfromcompaniesTargetwordingshallfollowthetemplatesintheTargetValidationProtocolforNear-termTargetsv3.0andtheSBTiNet-ZeroStandard,withtheadditionalrequirementthatfortargetsthatincludecementScope1emissions,theword“gross”shallbeincludedtomakeclearthatemissionsfromwaste-derivedfuelsareincluded.Examplewordings:near-termtargetsScope1&2:●[CompanyX]commitstoreduceScope1&2GHGgrossemissions40%pertonnecementitiousmaterialsby2030froma2020baseyear.●Forcombinedtargets,itisrecommended(butnotrequired)toalsoprovidethedisaggregatedtargets,asfollows:Withinthistarget,[CompanyX]commitstoreducescope1GHGgrossemissions30%pertonofcementitiousmaterialandscope2GHGemissions70%pertonofcementitiousmaterialswithinthesametimeframe37CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgScope3:●[CompanyY]commitstoreducescope3GHGemissionsfrompurchasedgoodsandservices20%pertonneofpurchasedclinkerandcementby2030froma2020baseyear●[CompanyY]alsocommitstoreducescope3GHGemissionsfromfuelandenergyrelatedactivities20%pertonofpurchasedfuelsby2030froma2020baseyear.Examplewordings:long-termtargets●[CompanyX]commitstoreachnet-zerogreenhousegasemissionsacrossthevaluechainby2050●[CompanyY]commitstoreduceabsolutescope1,2,and3GHGemissions90%by2040froma2019baseyear●[CompanyZ]commitstoreducescope1+2emissionspertonneofcementitiousmaterials95%by2050froma2020baseyear.[CompanyZ]alsocommitstoreduceabsolutescope3GHGemissions90%by2050froma2020baseyearNoteonbioenergyIfacompanyisusingbioenergy,thefollowingfootnoteisrequiredtobeincludedintargetlanguage:“Thetargetboundaryincludesland-relatedemissionsandremovalsfrombioenergyfeedstocks."9.3.3Guidancetoavoidconfusionover“net”and“gross”whencommunicatingCompaniesoftencommunicatetheirSBTi-validatedtargetsinpressreleasesorotherlongercommunicationsformats,whichincludeadditionalinformation.WhereotherfiguresoutsideoftheSBTi-validatedtargetarecommunicatedtogetherwiththetarget,companiesshouldtakecaretoavoidcreatingconfusionaroundwhatcomprisesthevalidatedtargetandwhatisadditionalinformation.Inparticular,cementcompaniesshouldavoidcreatingconfusionaround“gross”emissions(includingemissionsfromwaste-derivedfuels),whicharethebasisforSBTs,and“net”emissions(excludingemissionsfromwastederivedfuels),whichcannotbethebasisofSBTs.Therefore,inadditiontoincludingtheword“gross”intargetwordingtobevalidatedbytheSBTi,asmentionedabove,companiesshouldavoidreferringto“net”emissionsinsuchawaythattheymightbeconstruedasformingpartoftheSBT,suchasinthesameparagraph.Companiesshouldcarefullydistinguishbetween“gross”and“net”emissionsincommunications.38CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org10CONCLUDINGREMARKSANDOPPORTUNITIESTheSBTiendeavorstokeepourresourcesandsector-specificmethodologiesuptodatetoalignwiththelatestclimatescience,dataavailabilityandresearch.Consequently,asknowledgeanddatadevelopwithinthisarena,potentialfutureupdatestothisguidancecouldinclude:furtherguidanceonnaturalrecarbonation,industrialmineralisation,otherCCU,andCCS.39CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org11GLOSSARYBECCS-Bioenergy,carboncaptureandstorageCCU-CarboncaptureanduseCCS-CarboncaptureandstorageGGBS-Groundgranulatedblast-furnaceslagGHG-GreenhousegasIEA-InternationalEnergyAgencyIPCC-UnitedNationsIntergovernmentalPanelonClimateChangeLCA-Life-cycleAssessmentSDA-SectoralDecarbonisationApproachSBT-Science-basedtarget40CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org12BIBLIOGRAPHYAndersson,R.,Stripple,H.,Gustafsson,T.andLjungkrantz,C.,2019.Carbonationasamethodtoimproveclimateperformanceforcementbasedmaterial.CementandConcreteResearch,124,p.105819.CEN,2017.EN16757:2017Sustainabilityofconstructionworks-Environmentalproductdeclarations-ProductCategoryRulesforconcreteandconcreteelements.CEN,2019.EN15804:2012+A2:2019Sustainabilityofconstructionworks.Environmentalproductdeclarations.Corerulesfortheproductcategoryofconstructionproducts.Friedlingstein,P.,O'Sullivan,M.,Jones,M.W.,Andrew,R.M.,Hauck,J.,Olsen,A.,Peters,G.P.,Peters,W.,Pongratz,J.,Sitch,S.andLeQuéré,C.,2020.Globalcarbonbudget2020.EarthSystemScienceData,12(4),pp.3269-3340.GCCA,2021.ConcreteFuture.TheGCCA2050CementandConcreteIndustryRoadmapforNetZeroConcrete.Availableathttps://gccassociation.org/concretefuture/wp-content/uploads/2021/10/GCCA-Concrete-Future-Roadmap-Document-AW.pdfIEA,2017.EnergyTechnologyPerspectives2017.CatalysingEnergyTechnologyTransformations.InternationalEnergyAgency,availableathttps://www.oecd-ilibrary.org/energy/energy-technology-perspectives-2017_energy_tech-2017-enIEA,2018.TechnologyRoadmapLow-CarbonTransitionintheCementIndustry.Availableathttps://iea.blob.core.windows.net/assets/cbaa3da1-fd61-4c2a-8719-31538f59b54f/TechnologyRoadmapLowCarbonTransitionintheCementIndustry.pdfIEA,2020.EnergyTechnologyPerspectives.Availableathttps://iea.blob.core.windows.net/assets/7f8aed40-89af-4348-be19-c8a67df0b9ea/Energy_Technology_Perspectives_2020_PDF.pdfIEA,2021.NetZeroby2050,availableathttps://www.iea.org/reports/net-zero-by-2050IPCC,2006.GuidelinesforNationalGreenhouseGasInventories.Volume3:IndustrialProcessesandProductUse.Chapter2MineralIndustryEmissions.41CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgIPCC,2021.ClimateChange2021:ThePhysicalScienceBasis.ContributionofWorkingGroupItotheSixthAssessmentReportoftheIntergovernmentalPanelonClimateChange.CambridgeUniversityPress.ISO,2021.ISO21644–MeasuringtheBiomassContentofSolidRecoveredFuels(SRF)Teske,S.,Niklas,S.,Atherton,A.,Kelly,S.,Herring,J.,2020.Sectoralpathwaystonetzeroemissions.ReportpreparedbytheUniversityofTechnologySydneyfortheNetZeroAssetOwnersAlliance.Availableathttps://www.uts.edu.au/sites/default/files/2020-12/OECM%20Sector%20Pathways%20Report%20FINAL.pdfWBCSDandWRI,2004.GreenhousegasprotocolACorporateAccountingandReportingStandardREVISEDEDITION.Availableathttps://ghgprotocol.org/corporate-standardWBCSDandWRI,2011.Greenhousegasprotocolcorporatevaluechain(scope3)accountingandreportingstandard.Availableathttps://ghgprotocol.org/standards/scope-3-standardWBCSD,2011.CementCO2Protocol,availableathttps://www.cement-co2-protocol.org/en/Content/Resources/Downloads/WBCSD_CO2_Protocol_En.pdfWBCSD,2016.CementSectorScope3GHGAccountingandReportingGuidance.Availableathttps://www.wbcsd.org/Sector-Projects/Cement-Sustainability-Initiative/Resources/Cement-Sector-Scope-3-GHG-Accounting-and-Reporting-GuidanceETIPZEP,2021.EuropeneedsrobustaccountingforCarbonDioxideRemoval.Availableathttps://zeroemissionsplatform.eu/wp-content/uploads/Europe-needs-robust-accounting-for-Carbon-Dioxide-Removal-ZEP-report-January-2021.pdf42CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org13APPENDIXI:SCOPE2PATHWAYTheIEANetZeroreportdoesnotpublishsector-specificelectricityconsumption(unliketheIEAETP2017,onwhichtheSBTi’swell-below2ºCpathwayswerebased).Therefore,aScope2pathwaywasdeveloped,inconsultationwithIEA,byassumingthatcementindustrytotalelectricityconsumptiongrowsinlinewithelectricityconsumptionforallheavyindustries(thisdataisprovidedbyIEA),butcorrectedforslowergrowthofcementvolumescomparedtootherindustries(steelandchemicals).Theformulaisasfollows:●Cementglobalelectricityconsumptioninyeary=(2019cementelectricityconsumption6)(electricitydemandforheavyindustryinyearycomparedto20197)(cementvolumegrowthcomparedtootherheavyindustryforyeary8)ElectricitycarbonintensityistakenfromIEANetZerotocreatetheScope2pathway.Figure6:Electricityconsumptionfortheglobalcementindustry6SourceisIEAETP2017specificelectricityconsumptionandIEANetZerocementproduction7SourceisIEANetZeroreportFigure2.168SourceisIEANetZeroreportFigure2.1643CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgFigure7:Scope2pathwaysforglobalcementindustry44CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.org14APPENDIXII:NATURALRECARBONATIONANDTARGETSETTINGNaturalcementrecarbonation(orcarbonation)istheprocesswherebyCO2isabsorbedfromtheairbycement-basedproductssuchasconcreteandmortar.Sincerecarbonationcancausecorrosioninreinforcementandthereforereducethelifetimeofreinforcedconcretestructures,limitingtherecarbonationrateanddepthisakeypartofconcretestructuraldesign.Naturalcementrecarbonationisrecognisedasanot-insignificantcarbonsink(IPCC2006,IPCC2021,Friedlingstein2021)9althoughitisnotcurrentlyaccountedforincorporateorindustryinventories(suchastheGHGProtocolorIEA)10,norinSBTs.IncludingnaturalrecarbonationintheSBTframeworkcarrieswithitclearrisksandbarriers:●AccordingtoSBTiprinciples,near-termSBTscannotincluderemovals(exceptforFLAGsector)11.●TheGHGProtocolstates12thatremovalsandemissionstargetsmustbekeptseparate.●SBTsareintendedtoincentiviseadditionaldecarbonisationaction.Includingnaturalrecarbonationwouldchangeaccountingrules(bye.g.,loweringboththebaselineandtarget),butchangelittleintermsofcementcompanies’challengeoropportunitytodecarbonise.●Thereisnowaycurrentlytolinknaturalrecarbonationinexistingstructuresorwastetoaspecificproducer,andthereforethereisariskofseveralcompanieswantingto“claim”thesameCO2uptakeaspartoftheirtarget.ExistingaccountingmethodsInrecentyears,twobroadapproachesforaccountingforCO2uptakeduetonaturalrecarbonationincement-basedproductshavebeendeveloped.9IPCC6thARnotes0.2PgCperyearglobally(IPCC2021).10IPCCnotesthatrecarbonationshouldnotbeconsideredinnationalGHGaccountingforgoodpractice,butnotesitisanareaforfuturework(IPCC2006).11FromSBTiPathwaystoNetZero:“SBTsareemissionstargetsthatdonotincludecarbondioxide(CO2)removal,exceptforSBTscalculatedwithdedicatedguidanceforcompaniesintheforestry,land,andagriculture(FLAG)sectorsandinspecificcasesofbioenergyuse”.12AsperforthcomingGHGProtocolguidanceonremovals,emissionstargetsdonotincluderemovals.Removalstargetsor"net"targetsmustbeseparate.45CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orgThefirstisintendedforproductlife-cycleassessment(LCA)orcarbonfootprinting,whereallimpactsoverthelife-cycleofaproductarequantified(CEN2017).Here,areasonablyaccurateestimatecanbemadeforaspecificproduct,asconditionsaffectingcarbonationmaybeknown,suchasthetypeandstrengthoftheconcrete,theexposureconditions,andtheexposuretime.ThemagnitudeofCO2uptakewillvarysignificantlydependingontheseconditions.Thesecondmethodcouldbecalledthe“globalsink”method,wheretheannualCO2uptakeinallexistingconcretestructuresisestimated(Anderssonetal.2019).Thisrequiresestimatesaboutconcreteproducedhistoricallyforexistingbuildingsandinfrastructure.Often,thisannualCO2uptakeisexpressedasapercentageoftheCO2emissionsfromtheglobalcementindustryinagivenyear,althoughofcoursethesetwofiguresarenotdirectlyrelated(ifcementproductioninoneyeargoesdown,whiletheglobalsinkremainsroughlythesame,thecalculatedpercentageuptakewouldremainmisleadinglyhigh).Neitherofthetwomethodsabovenaturallylendsitselftotargetsetting,whichisbasedoncorporateScope1,2and3GHGaccounting.IfmappedtotheScope1,2and3approach,theLCAmethodcouldbeappliedtoScope3emissionsfromthepointofviewofacementproducer,orScope1emissionsfromthepointofviewofaconcreteproducer.Theglobalsinkmethodcouldinprinciplebeusedincalculationofacementcompany’sScope1emissions,althoughthisisproblematicasexplainedabove,asthesinkandthesourcehavenodirectrelationforagivenyear.Onesolution,discussedduringthedevelopmentofthisguidance,wouldbetoassumeaconservativeaveragefigurefortheannualglobalcementnaturalrecarbonationsinkpertonneofcement,andtoreducethecementcarbonbudgetand1.5ºCpathwaybythisamount.Companiesshouldthensubtractthesameamountfromtheirownbaselineandfutureemissions.Thisapproachhasnotbeentaken,however,asitwaspreferredtousetheIEANetZeropathwaywithoutmodification(fortransparencyandconsistency),whichdoesnotaccountforrecarbonation.Inaddition,iftheresultofthisapproachwereonlytoreducebaselineandtargetyearemissions,itwouldnotincentiviseadditionalactions.NaturalrecarbonationasawaytomitigateresidualemissionsTheSBTiNet-ZeroStandardstatesthatwhenalong-termtargetyearisreached,companiesmustcommittoneutralizingresidualemissionsthatremain.Itmaybethatnaturalrecarbonationcouldbeappropriatetocoverthisrequirementforcementcompanies.GiventhattodaytheSBTidoesnotprovidedetailedguidanceonwhatactivitiescancounttowardsneutralizationofresidualemissions,noronhowacompanycanclaimtheseactivitiesareexclusiveandadditional(i.e.,mitigatingtheiremissionsratherthanthoseofanothercompany),nodecision46CementScienceBasedTargetSettingGuidanceDraftforpublicconsultationsciencebasedtargets.org@ScienceTargets/science-based-targetsinfo@sciencebasedtargets.orghasbeentakenyetonwhethernaturalrecarbonationisappropriateinthiscontext.ThisisapotentialareatobeexploredinSBTi’supcoming‘BeyondValueChainMitigation’work.NoteonindustrialmineralisationTheabovediscussionappliestorecarbonationhappeningnaturally.Industrialcarbonation(alsocalledmineralisation),wheretheuptakeofCO2ispartoftheproductionprocess(e.g.throughinjectionofCO2intofreshconcrete),doeshavethepotentialtoincentiviseadditionaldecarbonisation,aswellasprovidingclearer“ownership”oftheemissionssavings.Forthisreason,industrialmineralisationisincludedasanemissionreductionmechanisminSBTs,subjecttocertainconditions(seeSection6.2).ThereisachemicallimittohowmuchCO2canbetakenupbyrecarbonationbycement-basedproductslikeconcrete.Ifindustrialmineralisationiscountedaspartofacompany’semissionreductionstoreachnet-zero,thensomeofthenaturalrecarbonationpotentialcanbeconsideredashavingbeenconsumed,andsowouldnotbeavailabletoneutralizeresidualemissions.
VIP
