Sabina Hodžić | Associate Professor, University of Rijeka, Faculty of Tourism and Hospitality Management, Croatia
Julija Škoro | Head of Sustainability at Holcim company, Croatia
The development of green buildings in the Istria region will receive a much-needed boost from the decarbonisation of the cement industry. The Just Transition Plan for the Istria region, outlined an ambitious plan to reduce emissions and decarbonise buildings. Therefore, Holcim – a global leader in the cement industry, has a plan to make buildings more sustainable by using cement with lower CO2 emissions. In addition, Holcim has promised to ensure that people from marginalised groups have the opportunity to raise their standard of living through a sustainable life characterised by inclusion and empowerment.
The development and characteristics of green building in connection with Just Transition
The term green building referred to the design of buildings with the aim of reducing negative impacts on the environment, promoting energy efficiency and resource conservation, and creating healthier living conditions for the people who use these buildings for living and working. In addition, the goal is to maximise the natural efficiency of a building site and integrate it with renewable and low-carbon technologies to meet the building’s energy needs and create a healthy built environment. This is in line with Holcim’s principles of respecting human and labour rights, protecting the environment, climate, and nature. However, principles are always difficult to put into practice. Therefore, we analysis in this blog how Holcim is planning to achieve their goals.
Carbon capture, utilisation, and storage (CCUS) plays a key role in Holcim’s journey to net zero material consumption. The potential impacts of these technologies relate to:
- Energy and water consumption of CCUS facilities
- Potential impact on communities
- Impact on Holcim’s Scope 3 emissions (90% reduction in greenhouse gas emissions by 2050, from a 2020 baseline)
This will enable Holcim to capture five million tonnes of CO2 and supply eight million tonnes of fully decarbonised cement per year. So far, six CCUS projects in Germany, Belgium, France, Poland, Greece and Croatia have been selected for grants from the European Union’s Innovation Fund and are scheduled to go into operation before 2030.
Holcim’s also receives funding from the Just Transition Plan and supports the plan with their own actions, which will include the following:
- Providing support programmes for employees – training, retraining and upskilling opportunities
- Working with trade unions to protect the rights and interests of employees during the transition period
- A transparent and regular dialogue with local communities to inform and consult them on decarbonisation initiatives
- Investing in community development projects to mitigate the potential social and economic impacts of decarbonisation
- Working with suppliers and customers to achieve their sustainability and transition targets to a low-carbon economy
This plan will aim to promote net-zero buildings and support workers in carbon-intensive industries. Therefore, Holcim’s approach is to work with labour unions and local communities on major renovations and new builds, reducing energy consumption and waste. Certainly, this will require additional education, awareness raising and active discussion with all local stakeholders.
Carbon capture and storage (CCS) project in Koromačno in Istria Region
Koromačno is a village in the south-eastern part of the Istrian peninsula, in Labinština, 19 kilometres south of the town of Labin. The village was founded (more than 100 years ago) for the needs of the – cement industry, which used tupina from the nearby hill above Vošćica Bay. Once the quarry had been exploited, the first houses were built for the employees in order to create a lively community that was involved in the activities of the local community.
In 1997, Holcim Croatia launched several initiatives to reduce carbon emissions from the Koromačno plant. As a result, Holcim initiated a project to phase out fossil fuels in 2021 and created the initial vision for the second project: KOdeCO net zero for carbon capture and storage (CCS). The aim of the project is to produce net zero cement in Croatia and the Mediterranean region (the first plant in this part of Europe). This will create the first end-to-end CCS value chain between the plant and storage in the Mediterranean region. The total investment amounts to 237 million euros, with a grant of 14.7 million euros expected from the Just Transition Mechanism Fund. The EU Innovation Fund, as first large project to be selected from Croatia and the wider region, secures further financial support of 116.9 million euro. The introduction of these new innovative technologies will not only make the environment cleaner, but also improve the living standards and employment of Koromačno’s inhabitants by leaving no one behind.
In preparing the project, Holcim also included the social component, including the trade union, employees, and local communities. Discussions were held with the union to explain the impact of the project on the future of the plant and to gain their support for the project. The project has only just started, so real activities to define the retraining and upskilling needs are still pending. Initial presentation meetings, e.g. with universities, have already been organised as we all need time to think through the job profiles and the training required for the future jobs. In regular town hall meetings with employees, the KOdeCO net zero project is a regular topic, not only for the cement plant employees but in all 13 production sites in Croatia, so that all employees understand the transition needs and impact. In Koromačno, where the cement plant is Holcim invites the neighbours to a dialogue twice a year to discuss current and future activities.
Holcim presented the EU Green Deal requirements in 2021 and in 2022 only as an idea to go towards CCS. At the beginning there were no questions, but on the third meeting first questions arose. This is why it is important to include the social aspect of the projects at the same time the design and technology aspects, to give time to all stakeholders to understand the impact and give their input. In addition, Holcim organises an open day event every year at the end of August, giving the public the opportunity to visit the company and ask questions of the engineers working there. Most questions are along the lines of “How often are the filtres changed and cleaned?” or “How do you monitor the level of negative emissions?”. One of the community’s questions was related to possible CO2 emissions – all these questions are taken into account in the project requirements and in the environmental impact study. The engineers always give a professional answer that satisfies the curiosity of the local people.
The future steps
In order to achieve the desired goals and specific targets for the cement industry in Koromačno, towards net zero, many things need to be established through the support of all stakeholders in society and at all levels.
To ensure safety, sustainability and environmental compatibility, the following steps should also be taken into account:
- Continuous learning and professional development
- Programme for professional managers
- Open and transparent dialogue with trade union representatives
- Financial support from various financial institutions and the national government
- Collaboration with suppliers
- Boosting demand for low-carbon concrete
- Consumer awareness of green products
- Open centres for innovation
- Proactive community engagement and buy-in
Although the future steps and ambitious plan towards net zero will require a lot of work, change and government support, there is no doubt that, this will ensure a cleaner environment, stable jobs and an improvement in the living standards and employment of Koromačno’s inhabitants. In addition, there are certain risks such as high electricity and water consumption and high investment costs, especially compared to imports from non-EU countries.
The first steps have already been taken and there is much more to come.
