High-Level Roadmap for Decarbonising Cement and Lime Production in Romania

With stricter climate rules, industries that emit a lot of carbon face tighter deadlines to reduce emissions. To stay competitive, the cement and lime sectors must adopt new strategies and invest in low-carbon technologies. These changes will be costly and complex. While Romania lags behind other countries like Bulgaria and Poland in carbon capture projects, cement and lime will still be vital for Romania’s growth. This is due to the country’s planned infrastructure projects, such as new roads and buildings by 2030.

Recommendations for the Next 5-10 Years

To succeed, industries and the government must commit to using the best methods for cutting emissions. Here are key steps for the next 5 to 10 years:

1. Deploy new renewable energy capacities: As the sector moves towards decarbonisation, energy demand is expected to rise, particularly due to carbon capture. Ensuring that this additional energy demand is clean will require substantial amounts of low-carbon energy and additional capacities to support both self-consumption and reducing the carbon intensity of Romania’s grid electricity supply.
2. Accelerate CO₂ transport and storage infrastructure development: Given the existing regulatory and permitting barriers and limited ambition for advancing CCS/CCUS technologies that have hindered progress on CO₂ transport and storage infrastructure, public authorities must strengthen their commitment to advancing CCS solutions.
3. Strengthen the cooperation between the cement and lime industries and hydrocarbon producers: Romania’s significant potential for geological CO₂ storage capacities and its obligation to capture and store 9 Mt of CO₂ annually until 2030, as outlined in the NZIA, requires an accelerated dialogue between the owners of depleted gas and oil fields and industries that will rely heavily on CCS (such as the production of cement, lime, fertilisers and oil refining). The dialogue is particularly relevant given the discussions around the adoption of a National Carbon Management Strategy.
4. Speed up investments and the disbursement of public funding: CCS is a costly yet essential technology for decarbonising the cement and lime sectors. Both the disbursement of funds and private financing are essential for kickstarting deep decarbonisation investments.
5. Design complementary funding mechanisms: In addition to issuing green bonds to raise funding, it is important to design new financial mechanisms such as Carbon Contracts for Difference, a flexible funding mechanism offering industrial operators a stable carbon price through a contract between the operator and the government. This can help finance operational costs based on actual emissions reductions.
6. Adopt a clear, ambitious yet feasible Green Public Procurement Plan for construction products: Implementing a well-designed and ambitious GPP system is a complementary tool that can indirectly compensate decarbonisation costs and stimulate market creation for low-carbon cement, lime and other construction materials.

In conclusion

In conclusion, the pace and effectiveness of the cement and lime industries’ transition toward decarbonisation depend not only on the companies’ investment plans but also on robust policy support.

Sabina Strîmbovschi, EPG Senior Researcher

Sabina works as a Senior Researcher in industrial decarbonisation within the Clean Economy Programme of EPG. She holds a PhD in Political Science (International Relations) from the National University of Political Studies and Public Administration (SNSPA, Bucharest). Before joining EPG, Sabina worked for one of the largest business support organizations in Romania, where she coordinated the activities of the European and international organizations office.

Over the last few years, she has been involved in two volunteer organizations. She served as an affiliated expert and board member at one of the most important think-tanks on European Affairs in Romania – the Center of European Expertise (Europuls). She is also a member of Future Energy Leaders Romania – the youth program of the Romanian National Committee of the World Energy Council.

Contact: sabina.strimbovschi@enpg.ro