The World Cement Association (WCA) has issued a stark warning about the future of independent cement producers as the European Union’s €100 billion industrial decarbonisation fund moves into implementation.
Speaking at EnviroTech Athens 2025 on 11 March, Emir Adiguzel, WCA Founder & Director, will call on policymakers to ensure that the EU’s ambitious Clean Industrial Deal supports all industry players—not just major corporations with deep financial resources.
The cement industry is at a crossroads, with global demand expected to shrink by 1 billion tonnes by 2050 and carbon costs rising under the EU’s Green Deal, announced in February. The sector must adapt quickly, but Adiguzel warns that funding distribution will determine who survives and who is left behind in the race to decarbonise.
Cement production is set to decline sharply in the coming decades, forcing a significant shift in supply chains, investment priorities, and emissions reduction strategies. As demand contracts, companies must rethink their production models and adapt to rising operational costs driven by new carbon regulations.
One of the biggest challenges facing the industry is the cost of Carbon Capture and Storage (CCS) technology. While CCS is considered a critical tool in reducing emissions, its multi-billion-euro capital expenditure requirements favour large corporations that can afford the investment. Independent producers, many of whom lack access to the necessary funding, risk being pushed out of the market if financial support is not allocated fairly.
Adding to the complexity, the Carbon Border Adjustment Mechanism (CBAM) is reshaping global trade by imposing tariffs on imports from countries with weaker environmental regulations. This policy is designed to level the playing field, but Adiguzel warns that it could lead to further market consolidation, where only companies with access to EU decarbonisation funds will remain competitive.
As European policymakers push for net-zero targets, the WCA is urging decision-makers to prevent a two-tier industry, where only large corporations benefit from decarbonisation funding. “Will the EU’s Clean Industrial Deal drive true innovation, or will it accelerate market consolidation?” Adiguzel will ask at EnviroTech Athens 2025, challenging regulators, financial institutions, and industry leaders to rethink how decarbonisation policies impact all market participants.
With the Middle East cement sector also facing sustainability pressures, the implications of Europe’s approach could ripple into global supply chains, including the GCC’s construction and logistics industries.
