Lafarge and Climate Change Chris Boyd CHRISTOPHER BOYD

Lafarge and Climate Change Chris Boyd

CHRISTOPHER BOYD n Joined Lafarge in 1999 (Environment and Public Affairs) n "Mr Sustainability" for Lafarge n Now General Manager Lafarge Italy n Economist n 15 years European Commission official Climate change and emissions trading September 2002 3

Lafarge, world leader in construction materials Climate change and emissions trading n 13. 7 billion euros n 83, 000 employees n Active in 75 countries n Founded in 1833 n 257, 000 shareholders September 2002 4

Lafarge and climate change n 1 tonne cement = 0. 7 tonne CO 2 n 1 tonne cement = c. € 60 n Gulp!!! n Lafarge committed to 20% reduction 1990 -2010 n WWF climate savers programme Climate change and emissions trading September 2002 5

Lafarge and climate change n n n Accepts that human activity is changing our climate Accepts that something has to be done about it But: o Other sectors should take their share of the burden (transport, housing, agriculture) o Efficiency must be a priority n n n o economic environmental bureaucratic Don’t just delocalise emissions Climate change and emissions trading September 2002 6

Lafarge is a ‘Climate Saver’ n n n Lafarge commitment: reduce CO 2 globally by 20% per tonne of cement 1990 -2010 Reduce by 10% absolute CO 2 in annex 1 Commitment endorsed by WWF First mover advantage Objectives by business unit o CO 2 o Cementitious additions o Waste fuels Climate change and emissions trading September 2002 7

Lafarge can turn a threat into an opportunity n Accept precautionary principle, push for efficient measures o o o o Move before you’re pushed Low cost insurance Defence against energy taxes Pro-active image Cut fuel costs Early mover advantage Trading is better than taxes or regulations Climate change and emissions trading September 2002 8

Industry and emissions trading n n Generally in favour: o Least bad solution o Promotes economic efficiency o Avoids eco-tax But: o What about the others (transport, households…)? o Need safeguard clauses o Bureaucracy Climate change and emissions trading September 2002 9

What has Lafarge learnt? n n n Know-how is more important than technology o Technology can be bought off the shelf o Waste fuel availability Incentives for private sector are needed o Can't be too far ahead of competition o CDM projects o Awareness Time is essential o Early moves important o Learning by doing o Marathon not a sprint Climate change and emissions trading September 2002 1

Materials for building our world