Lafarge and Climate Change Chris Boyd

3 September 2002 Climate change and emissions trading 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

4 September 2002 Climate change and emissions trading Lafarge, world leader in construction materials n 13.7 billion euros n 83,000 employees n Active in 75 countries n Founded in 1833 n 257,000 shareholders

5 September 2002 Climate change and emissions trading 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 n WWF climate savers programme

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

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

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

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

1010 September 2002 Climate change and emissions trading What has Lafarge learnt? n Know-how is more important than technology o Technology can be bought off the shelf o Waste fuel availability n Incentives for private sector are needed o Can't be too far ahead of competition o CDM projects o Awareness n Time is essential o Early moves important o Learning by doing o Marathon not a sprint

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