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Energy intensive and trade exposed (EITE) Portland cement manufacturing sector : developing policy and supporting mechanisms to minimize emissions leakage Brown, Darren

Abstract

Government intervention to limit and reduce nocuous air emissions from industrial applications focuses on protecting human health and the environment. Unfortunately, energy intensive and trade exposed (EITE) industries in developed countries are susceptible to competitive pressures with their counterparts in jurisdictions that have relaxed compliance requirements, such as emerging markets. Along with the loss of production to the emerging market, the associated air emissions are also displaced. The goal of this research is to develop policy and supporting mechanisms to minimize the leakage of air emissions from trade. The main objectives carried out to support this goal included: identifying a surrogate EITE industry and establishing a baseline air emissions inventory; comparing the environmental performance of the surrogate in the developed and emerging market; and, evaluating policy options and supporting mechanisms. As an EITE industry the Portland cement manufacturing sector was identified as the industrial surrogate. Life Cycle Impact Assessment (LCIA) methodology was applied to the cement manufacturing sectors in China and Canada for comparative purposes. Nocuous air emissions of oxides of nitrogen (NOx), sulphur dioxide (SO₂), particulate matter (PM) and carbon monoxide (CO) were evaluated in terms of intensity per tonne of Portland cement, and, in respect of their contribution to winter smog. In terms of impact to human respiratory health, using Disability Adjusted Life Years (DALYs), Portland cement produced in China had more than twice the impact of cement produced in Canada. Using the example of cement exported from China, policy options were devised to manage emissions leakage from Canada. These policy options investigated combinations of open, restricted and closed borders with direct, partial, and no support for domestic manufacturers. Analytic Hierarchy Process (AHP) in conjunction with the three actionable solidarities of Cultural Theory was applied. Results indicated a restricted border with partial support was most strongly favored, and, of the policy mechanisms reviewed, a verification process was supported. Under the Canadian Environmental Protection Act, 1999 (CEPA) an air quality agreement can be established to include this policy framework between China and Canada. The proposed approach for EITE cement industry can be extended to other industries and international trade.

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Attribution-NonCommercial-NoDerivatives 4.0 International