Commission holds a high-level policy dialogue on the future of the cement industry in Europe

The dialogue brought together industry representatives and key stakeholders. Commissioner for the Environment, Water Resilience and a Competitive Circular Economy, Jessika Roswall also took part.

The exchange focused on how to accelerate the sector's clean transition, with a strong emphasis on innovation, competitiveness and resilience.

Building on the Clean Industrial Deal and the proposed Industrial Accelerator Act (IAA), the discussion explored how to position Europe's cement producers at the forefront of low-carbon technology, strengthening climate leadership, industrial competitiveness and strategic independence.

The Commission has already launched a range of measures in support of European industry, including the cement sector. Key takeaways from the discussions included:

The need to develop lead markets for low-carbon and circular products. The IAA will help drive demand for low-carbon cement and concrete through the development of a label for low-carbon concrete and public procurement. Meanwhile, product standards under the Construction Products Regulation are being revised to introduce mandatory disclosure of lifecycle climate impacts and facilitate the uptake of innovative solutions (e.g., through setting harmonised, performance-based standards).

Scaling up funding for decarbonisation.

The Industrial Decarbonisation Bank, which aims to generate EUR 100 billion in public funding, is expected to play a key role. As President von der Leyen recently underlined, it will be important for Member States to increase the share of ETS revenue they invest in industrial decarbonisation - currently only 5% on average - and make full use of the opportunities offered by the Clean Industrial Deal State Aid Framework. Participants also called for funding to be more accessible through better alignment of criteria and one-stop-shop approaches. They underlined the need to support the full range of solutions, from carbon capture and storage (CCS) to clinker substitution and other innovative technologies. Lastly, many participants highlighted the need to mobilise more private finance,notably through de-risking instruments such as carbon contracts for difference. In the coming days, the Commission will publish State aid guidance to help Member States deploy these instruments.

Enabling the transition

Participants underlined that a skilled workforce is a critical enabler for the transition. The Commission is addressing the challenges identified by industry - including labour shortages, limited skills mobility, and the need for reskilling - through several initiatives under the Union of Skills, such as the Skills Guarantee, the Skills Portability Initiative, European Vocational Education and Training Strategy, and large-scale skills partnerships under the Pact for Skills (incl. for energy-intensive industries). It is also establishing a European Fair Transition Observatory. Sector representatives further stressed the need for greater policy coherence and reduced administrative burden where possible.

Effective carbon pricing

Participants strongly endorsed the Commission's commitment to the Emissions Trading System (ETS), the EU's market-based carbon pricing instrument and cornerstone of EU policy for industrial decarbonisation. Representatives from the cement sector called on the Commission, in the context of the upcoming ETS review for the post-2030 period, to provide aa predictable and stable policy framework with clear long-term policy signals to support investment and business planning. It was also noted that a fully effective and operational Carbon Border Adjustment Mechanism is needed to address risks such as carbon leakage and circumvention.

Accelerating progress on energy and CO₂ infrastructure

Sector representatives raised concerns about high energy costs and their impact on international competitiveness. They also highlighted the need to accelerate progress on CO₂ infrastructure, including transport and storage. Over 60% of the sector's emissions stem from direct process emissions, specifically the CO₂ produced during the calcination reaction necessary for clinker production. This means that carbon capture, use and storage (CCUS) plays a significant role in the sector's transition pathways. In particular, the full implementation of the Net-Zero Industry Act, was identified as a priority, including its requirement for oil and gas producers to deliver 50 Mt / year of CO₂ injection and storage capacity by 2030, as well as streamlined permitting procedures. The Commission's legislative proposal on the development of the CO₂ transportation infrastructure and markets due in Q3 2026 will further help address barriers to the deployment of CCUS and the decarbonisation of industry.

All these elements will require continued attention from both policymakers and industry in the coming period. The Commission will advance relevant legislative initiatives in line with its 2026 Work Programme, while continuing to engage with key stakeholders. In turn, the sector will be able to commit to step up investment in Europe and double down on itsjourney to net zero.

Background

The sectoral policy dialogue on the future of the cement industry in Europe builds on the Competitiveness Compass and Clean Industrial Deal and complements the Commission's sectoral engagement with other energy-intensive industries, notably Chemicals and Steel. The Dialogue provides a platform to discuss the sector's challenges and opportunities in the transition to a climate-neutral, competitive economy - contributing to the Commission's ambition to build a strong, secure, and prosperous Europe.

Aalborg Portland
Agora Industry
Bellona Europa
Buzzi S.p.A.
Cement Europe
Cemex
CRH
Ecocem
European Investment Bank
Heidelberg Materials
Holcim
NeoCem
SchwenkZement
Titan Cement
Vrije Universiteit Brussel
Zero Emissions Platform