[CemExec] Howard Klee, WBCSD (Part 2 of 2)

The climate policy modeling work we just completed showed both the distortions and the impacts of different regulatory approaches. We looked at the case where, for example, one region adopted a hard limit (a ÔÇ£capÔÇØ) and other regions do not.  In such a case, the region with the more stringent CO2 limits will need to consider policies which minimize possible trade distortions.  For example, emissions allowance allocation policies can strongly affect price differences between regions.  Free allowances (as compared to an allowance auctioning system) can minimize these trade distortions.

CW:  ÔÇ£Environmental consciousnessÔÇØ ÔÇô how can cement companies use this as a strategic advantage as opposed to see it as a cost?

HK: I think the ÔÇ£consciousnessÔÇØ you mention extends beyond environmental concerns.  The company members of the CSI share a common belief that sustainable practices are the best way to keep their businesses thriving.  They understand that their local licenses to operate, innovate, and grow depend in large measure on effective management of the environmental, safety and social sides of their business, just as their financial performance determines their reception by investors.