Heidelbergcement Successful With First Cdm Project In Indonesia

HeidelbergCement successful with first CDM project in Indonesia

Company press release

July 11 2004

Indocement, HeidelbergCement's Indonesian subsidiary, signed an agreement with the Prototype Carbon Fund, managed by the World Bank, regarding the sale of CO2 reduction certificates as part of a CDM project for the period from 2005 to 2012. The "Clean Development Mechanism" (CDM) recognizes investments in emission reduction measures in developing countries by generating emissions certificates, which can be sold or used in the European Emission Trading Scheme.

This project is the first CDM project within the South-East Asian cement industry and is strongly supported by the Indonesian government. By introducing low-clinker quality cements and strengthening the use of secondary fuels, a yearly average of more than 500,000 tonnes of CO2 emissions will be eliminated over the next 10 years. The secondary fuels used will primarily be agricultural by-products such as rice husks and residues from palm oil production.

HeidelbergCement's Indonesian subsidiary is one of the first companies worldwide to have developed a CDM project. Until now, only five CDM projects have been approved worldwide, as the Clean Development Mechanism, monitored by the United Nations, is subject to strict conditions. Preparations for the project lasted two years and were carried out by Indocement in close cooperation with the World Bank.