Climate Bonds Initiative (CBI) has released a new paper highlighting the climate risk of the cement industry and how sustainable finance markets and policy can support its decarbonisation. If global cement manufacturing were a country, it would be the third-largest emitter on the planet, only after China and the USA, the report noted. Cement production represents around 7% of global emissions and is the second largest global industrial emitter after steel. Its decarbonisation, therefore, is especially critical as cement is also a key input into the supply chain of many industries, particularly construction and infrastructure. The cement industry is also highly capital intensive and financial flows need to be aligned with a Paris-compatible scenario, avoid lock-in, and be in place for the next investment cycle considering the longevity of cement assets (up to 60 years), according to the CBI. Fabio Passaro, Senior Transition Policy Analyst at CBI, said: “The cement sector is at an early yet critical stage in the net-zero transition. The success of the cement transition relies heavily on policy support which can play a significant role in determining which pathways are taken”.