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ISLAMABAD, Jul 10 (APP):Pakistan’s cement sector demonstrated strong commitment to decarbonization during a high-level regional dialogue on Thursday that brought together 80 industry leaders, policymakers and technical experts from Pakistan, Germany and Azerbaijan.
The forum revealed significant progress in adopting clean technologies while identifying critical policy and financing gaps that require urgent attention. The speakers said cement that built our cities now threatens our climate future. But the solutions to transform this industry from problem to solution are not decades away – they exist today, they’re proven, and they’re ready to scale, said a press release issued here on Thursday.
Organized by the Pak-German Climate and Energy Partnership in collaboration with the Sustainable Development Policy Institute (SDPI), this regional dialogue provided a platform for knowledge exchange between the German Cement Works Association (VDZ), the Azerbaijan Cement Producers Association (ASIA), and the All Pakistan Cement Manufacturer’s Association (APCMA) to discuss the sector’s dual challenge: meeting growing infrastructure demand while reducing emissions in line with the goals of the Paris Agreement.
Pakistani cement manufacturers showcased substantial progress in decarbonization efforts. Syed Noman Hasan, Executive Director of Lucky Cement, said that 80-90 percent of manufacturers have adopted efficient, lower-emission energy systems over the past five years, with Lucky Cement now deriving 70% of its energy from solar and wind sources.
Dr. Arif Bashir of DG Cement highlighted successful deployment of alternative fuels and waste-to-energy systems, achieving 40-50 percent carbon footprint reduction through waste-derived fuels and municipal solid waste utilization, while implementing CO2 capture and reuse technologies.
However, structural challenges remain significant. Ahsan Anis, Chief Operating Officer (COO) of Power Cement, emphasized that while Pakistan generates 126 million tonnes of agricultural waste annually, inadequate value chains prevent full utilization. “A complete shift to biomass could eliminate coal use, create 30,000 jobs, and save $930 million in imports,” he stated, noting that coal still represents 50 percent of production costs.
Saleha Qureshi, SDPI’s Head of Decarbonization, presented findings from Pakistan’s first comprehensive scoping study on cement sector decarbonization. The research revealed that Pakistan’s Nationally Determined Contributions currently lack specific decarbonization targets for the industrial sector, despite cement contributing 44.5 percent of the country’s industrial emissions.
The study identified five critical decarbonization levers: energy efficiency, alternative fuels, clinker substitution, novel cement technologies, and carbon capture and storage. While clinker substitution offers the most cost-effective pathway, implementation faces significant policy and financing barriers.
“There’s an urgent need for green transition finance, regulatory reform, and consumer-driven demand for low-carbon cement,” Qureshi emphasized.
Martin Schneider from VDZ Germany shared Germany’s systematic approach to cement decarbonization through voluntary yet structured mechanisms. Germany has launched a comprehensive Cement Carbon Class system ranging from Net Zero to Class E, with third-party certification and CO2 labeling requirements.
“Germany’s approach demonstrates how linking public procurement with low-carbon cement availability drives market transformation,” Schneider noted. “Climate-friendly labels are becoming mandatory in public tenders, while carbon criteria integration into building codes accelerates innovation.”
Henning Sasse, representing the Azerbaijan Cement Producers Association, outlined Azerbaijan’s post-COP29 initiatives, including a CO2 Accelerator Program developed with VDZ and GCCA. Azerbaijan leverages its natural gas resources and geological potential for carbon capture, while implementing polluter-pays regulations and green procurement systems.
Ahmed Naveed from the National Energy Efficiency and Conservation Authority (NEECA) outlined ongoing government efforts including energy audits, retrofitting programs, and building code improvements. NEECA is collaborating with PSQCA and Environmental Protection Agencies to reduce clinker ratios and enhance energy efficiency standards.
Dr. Shehbaz Ali Khan from the Ministry of Commerce’s National Compliance Center acknowledged technical expertise gaps while highlighting ministry efforts to prepare industries for the EU’s Carbon Border Adjustment Mechanism (CBAM) and support technology transfer initiatives.
Sobiah Becker, Advisor, Pak-Germany Climate and Energy Partnership, GIZ, emphasized that “green cement is no longer theoretical—it’s a proven solution. Examples from Germany and Azerbaijan demonstrate that cement decarbonization is both technically feasible and economically viable.”
The regional dialogue paves the way to further exchanges and collaboration to accelerate clean cement deployment across the region.