Eco-Finance

Joining the dots between cost and carbon reduction for finance directors

Is the Green Party picking the right fight?

On the issue of Cemex and the River Avon.

As alternatives to virgin carbon energy sources are being explored and adopted, a mini storm has been brewing for a while now in Rugby.

Cemex (NYSE:CX), a leading supplier of cement, ready-mixed concrete and aggregates, was hit by criticism from the local Green Party earlier in the year at the planning stage for a waste-to-cement factory expansion near to the River Avon in Rugby. The company argues that the new factory expansion, which will be one of the most advanced of its kind in the world and represents some £200 million of investment, is an environmental win-win, compositing and burning waste, that would otherwise go to landfill, into fuel for the kiln.

The Green Party, on the other hand, argues that that the expansion will make the River Avon one of the most polluted in the country.

Six months on and the Environment Agency has given the go-ahead to continue to burn climafuel after Cemex carried out extensive tests to show climafuel, made from household waste after removing recyclable materials, could be safely used as a substitute for coal. So far, the trial has delivered a significant reduction of emissions of oxides of nitrogen (30%) and the company has applied to increase its use from the 15% it burns at present to up to the maximum permitted 65%. The local Green Party, for its part, is still not convinced and has reserved judgement pending on-going consultation with Cemex.

There may be more to this mini-storm than meets the eye, however. The Green Party battle is being fought by Felicity Norman, Green Party Prospective MEP for Rugby, on the basis of CO2 reduction balanced against community interest, which raises the issue of why she has chosen to fight this particular battle and begs the question, has she picked the right fight?

The cement industry is responsible for somewhere in the region of 5% of global CO2 emissions. What Cemex are doing makes a significant dent in that. The expansion will likely create more jobs in the area and the success of this move to climafuel might just have a knock-on effect in the industry as a whole, lowering the global contribution since the bulk of cement production is in China, a country that has a declared intent to become a climate friend, not foe.

What is worrying that, having fought the good fight to raise the level of environmentally sound business practice, the Green Party (in Rugby, at least) now has no banner to wave; so they start to pick at the fabric of good intentions, in a business environment that is still poorly performing in terms of low emissions actions and risks stopping the train dead in its tracks before it has a chance to get up a full head of steam.

It ought to be careful that the objections raised by a local candidate in the struggle to be elected to the European Parliament do not tarnish the efforts of the party as a whole; the Green Party has a valid contribution to make to British and European politics and it would be a shame if a strong and sensible voice in the struggle to build a sustainable business infrastructure was devalued by some short term spin and rabble-rousing by a candidate looking for a nice flat in Brussels.

As far as I am aware, any pollution incidents on the River Avon this year (a) have been dealt with speedily by the Environment Agency with no loss of fish stocks and (b) did not originate anywhere near Rugby… so what’s the problem?



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