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Climate Change Mitigation Strategy A Position Paper on TITAN Group THE ISSUE Over the last century carbon dioxide emissions have risen, in large part due to the usage of fossil fuels, but also due to other factors that are related to rising populations, increasing consumption, and land-use change. Although there is still debate as to the magnitude, there is solid evidence that our world is warming. The majority of the Scientific Community led by the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) has now linked these two phenomena in a likely cause-effect relationship. Projections show that if the present trend continues, global temperatures could rise by two to four degrees by the end of 21st century leading to very damaging impacts. International awareness of this global threat has led to the adoption of the Kyoto Protocol (Protocol to the International Framework Convention on Climate Change) with the objective of reducing greenhouse gases. Developed countries, signatories to the convention, have undertaken specific reduction targets, whereas developing countries have no obligation beyond monitoring and reporting emissions. Support of the Kyoto Protocol among developed countries ranges from full endorsement (E.U.) to non ratification (U.S.). Titan that operates in both above regions as well as in developing countries is faced with different operational and legal challenges. The purpose of the present position paper on CLIMATE CHANGE MITIGATION STRATEGY is to provide useful guidelines to our operating units to meet reduction obligations, where regulation is enforced and equally important to assume voluntary actions on climate change in regions that are not yet subject to such regulatory policies. THE CHALLENGE The power generating and manufacturing sectors are expected to meet increased demand due to continuing global economic growth. These developments need to be offset with significant improvements in energy efficiency and a shift to lower carbon options. The cement industry in particular plays a major role in meeting society's needs for housing and infrastructure that are expected to increase considerably in the developing world. The challenge we face is to develop processes and practices that will curb the intensity of CO2 emissions per 1 ton of cement produced in order to strike a balance between climate change risk and global growth. MITIGATING ACTIONS Titan and Climate Change Titan is committed to taking mitigating actions to face the challenge of climate change , has set targets for Co2 emissions reductions and has identified a set of actions that will reduce our ecological footprint and address sustainability issues, Titan is a member of the World Business Council of Sustainable Development and an active member of the Cement Sustainability Initiative, an initiative of major cement manufactures committed to addressing sustainability issues of the cement industry Our Mitigating action will be focused on the following areas : • • • Efficient use of thermal and electrical energy Use of Alternative Fuels and Materials Cement Production with lower Clinker Content Efficient use of thermal and electrical energy Thermal Energy Savings Clinker formation is highly demanding in thermal energy. Although that part of the energy associated with the chemical process that takes place in the rotary kiln cannot be reduced, significant opportunities to reduce heat transfer losses and energy requirements will be pursued through: • • • Selecting dry-processing method if possible with available raw materials Installing efficient multi-stage preheaters, precalciners and clinker coolers Substitution of fossil fuels with alternative fuels, biomass and where possible with carbon neutral fuels Electrical Energy Savings • • • Use of electrical energy efficient vertical mills for the grinding process Use of mechanical as opposed to pneumatic conveying equipment Savings that will result from plant improvement and upgradings by using state of the art technology in energy management These principles will be applied, to all new projects and taken into account in potential acquisitions 2 Use of Alternative Fuels and Materials High temperatures in the cement rotary kiln enable waste management and resource preservation with the least negative impact and can lead to the utilization of waste , both industrial and municipal as fuel. Titan will seek to maximize the use of alternative fuels, wherever available, strictly following the Emissions Monitoring, Health and Safety Guidelines issued by the CSI Incentives and disincentives of use of alternative fuels must be evaluated and communicated to local stakeholders Priority should be given to the use of carbon neutral biomass. Cement Production with Lower Clinker Contents The use of fly ash, slag and other available cementitious materials results in lower CO2 emissions per ton of cement. The options available through the implementation of cement standards for composite cement in certain regions must be fully utilized (i.e. European Norm). In the USA similar opportunities exist for developing cementitious products that can be added directly to concrete achieving the same end result. RESEARCH & DEVELOPMENT Cement manufacturing is a mature industry applying the same chemical process for more than a hundred years thus rendering a revolutionary breakthrough rather unlikely. However the sheer volumes of material and energy involved in the production of cement give rise to opportunities for efficiency improvement through continuous research for innovative practices and products. Medium term objectives for our Research Centers on both sides of the Atlantic should lead to Further use of waste and refuse-derived fuels and raw materials assessing their impact on the environment as well as Public and Employee Health and Safety. Maximizing the cementitious materials in blended cement or concrete Product differentiation to cover market needs in cement and/or concrete with reduced CO2 emissions. Concrete durability through studies and life cycle assessments that will meet requirements of architects, engineers and the society in general Partnerships and cooperation with Technical Universities and Research institutes should be encouraged to identify long-term research areas such as low-calcium cement, carbon storage and sequestration. PROGRESS MONITORING CO2 emissions and relevant Climate Change Indicators will be monitored at each plant level. (see CSI KPI’s list) 3 Improvement targets will be set in alignment with targets set at Group level. Data collection will follow the CSI CO2 Protocol in a way that will render third party verification possible. Gaps between actual performance and target or allowances must be identified well in advance to allow early actions. Opportunities offered by Emissions Trading Scheme (ETS) and Clean Development Mechanism (CDM) should be investigated where applicable. STAKEHOLDER AND POLICY MAKER’S DIALOGUES Implementation of the Climate Change Mitigation Strategy and Sustainable Development Agenda will present challenges to industry Regulators and Stakeholders. The importance of dialogue and communication cannot be overemphasized. Public attitudes towards corporate behavior are changing. Businesses are increasingly held accountable for their policies and practices in respect to the environment and sustainable development. Disclosure and transparency are the building blocks for trust. 4