The cement industry in Romania could disappear

The cement industry in Romania could disappear
Published: 03 November 2008

The cement industry in Romania could disappear if the carbon dioxide emission certificates will have to be purchased by bidding, as producers will have to relocate to other states,

Cement industry in Romania could disappear if the carbon dioxide emission certificates will have to be purchased by bidding, as producers will have to relocate to other states, which do not have the mandatory quota of pollution, according to Carpatcement Holding company management.

"The challenge will appear in 2013-20, when the problem is that everybody will have to bid (for the acquisition of emission certificates, ed.n.), that would be a great calamity for the cement industry. There is still time until 16 December, when the law is to be voted in the Parliament, if our parliamentarians will vote consciously", on Friday said the General Manager of Carpatcement Holding, Mihai Rohan. Rohan said that over the past 10 years, in Romania, the cement factories had reduced pollutant emissions by 30 per cent and would be able to reduce them by maximum 10 per cent more.

"Nobody asked money for CO2 from others," said Rohan.

If emissions certificates are to be purchased by companies in the cement industry by bidding, 5000 jobs will disappear from Romania, as well as 15,000 other jobs in activities adjacent to this industry.

According to Rohan, Romania will have to spend €1.5bn for imports of cement for construction, and the state budget will lose about €400m in taxes and fees. Similarly, 1.5 Mt of waste, annually consumed by companies in the cement industry, will remain unused.

According to ROHAN, three studies elaborated at European Union level showed that, by the obligation for each company to buy its emission certificates by bidding, the whole European cement industry would be relocated. In Rohan’s opinion, this will mean an increase of pollutant emissions generated both by the production of cement in states that pollute heavily, and by its transport to other markets.
"Should we have to bid, the CO2/t would reach €20-30. Three studies at European level have shown that if all the certificates are bought, the entire cement industry in the EU must be relocated, everyone will consider producing in other countries, which means that CO2 emissions will increase, because CO2 from China or India will also appear", he said.