Economic Trends in High-emitting Sectors 2023

Greenhouse Gas Emissions and Economic Activity in the Manufacture of Cement & Other Non-Metallic Minerals Sector

Figure 4.1 shows that in the Manufacture of Cement & Other Non-Metallic Minerals sector, GVA at constant (2023) prices, employment and territorial greenhouse gas emissions were all higher in 2023 than in 2011. Greenhouse gas emissions from this sector rose from 2.2 million tonnes of carbon dioxide equivalent in 2011 to 3.3 million in 2023, a 52% increase (see Table 4.1). In the same time period, GVA rose by 53% and employment by 30%.

Figure 4.2 shows the sector share of total emissions, GVA, and employment. In 2023, emissions from Manufacture of Cement & Other Non-Metallic Minerals were 6% of total greenhouse gas emissions, compared with 4% in 2011. The sector share of GVA and employment remained fairly steady at around 0.2-0.3% of total GVA and 0.3% of total employment across most of the time period.

Table 4.1 shows data on levels of greenhouse gas emissions, GVA, and employment numbers for the Manufacture of Cement & Other Non-Metallic Minerals sector from 2011 to 2023, as well as the share of total emissions, GVA and employment. In 2023, emissions were 3.3 million tonnes of carbon dioxide equivalent, GVA was €1.1 billion, and employment in the sector was 8,107 persons.

Sources of Greenhouse Gas Emissions

Figure 4.3 shows the source of greenhouse gas emissions in the Manufacture of Cement & Other Non-Metallic Minerals sector in 2023. Industrial production processes involved in cement and lime production made up 58% of emissions in 2023, while 33% came from non-transport fuel combustion, 5% from electricity consumption, and the remaining 4% from road transport fuel use.

Table 4.2 shows that over half of greenhouse gas emissions in the sector were due to industrial production processes each year between 2011 and 2023, with the share rising from 53% in 2011 to 58% in 2023.

Energy Use in the Manufacture of Cement & Other Non-Metallic Minerals Sector

Figure 4.4 and Table 4.3 shows energy use in the Manufacture of Cement & Other Non-Metallic Minerals sector, based on CSO Business Energy Use survey data. Energy use in the sector increased by 55% from 2011 to 2023, with increases in fossil fuel use, renewable energy (including waste) use, and electricity consumption. The share of (non-transport) fossil fuels fell from 73% to 54% in the same time period while the share of renewable energy rose from 7% to 28%.

Large manufacturers in the Manufacture of Cement & Other Non-Metallic Minerals sector are included in the EU Emissions Trading System (ETS). In 2023, 86% of greenhouse gas emissions from this sector were included in the scheme, up from 77% in 2011 (see Table 4.4). The scheme covers emissions from fuel combustion and from industrial processes. Participants in the scheme must obtain an emissions permit for each tonne of carbon dioxide equivalent emitted in the manufacturing plant. A certain amount of free permits are allocated to each plant while the remainder must be purchased through the scheme. Between 2011 and 2017, free permits exceeded ETS emissions in this sector. From 2018 on, free allowances were less than ETS emissions most years. Free ETS permits in the sector fell from 4.4 million in 2011 to 2.6 million in 2023. 

Interactions with other NACE Sectors

Table 4.5 shows the value of final uses of products manufactured by the Manufacture of Cement & Other Non-Metallic Minerals sector in 2021. The construction sector accounted for 58% of the value, indicating that demand for cement for construction purposes was the main driver of demand for production in this sector. A further 22% was used by other NACE sectors and 17% was exported.