The cement industry of Uzbekistan today is in a situation where modernization is becoming not only a matter of decarbonization, but also a matter of economic sustainability and competitiveness of enterprises.
In this article:
- Market analysis, regulatory documents and legislation
- What CO₂ emissions from cement production consist of
- Coal — a carbon and economic risk for Uzbekistan
- Roadmap for modernization of a cement plant
- The first stage of modernization: finding where the plant is losing money
- What measures can be implemented without full reconstruction of the plant
- Waste Heat Recovery – heat recovery: returning part of the paid-for energy back
- Reduction of clinker factor as a key pathway for decarbonization
- LC3 and technology optimization
- Alternative fuel, technologies and localization of raw materials
- CBAM and new requirements for the carbon footprint of cement
- Development of MRV and carbon regulation in Uzbekistan and Central Asia
- Carbon Platform for digital accounting and decarbonization management
- How to evaluate modernization through CAPEX, OPEX, CO₂ and payback period
- Uzbekistan received an opportunity for CIF financing of decarbonization of cement plants
- What a pilot program for the cement industry of Uzbekistan may look like
1. Market analysis, regulatory documents and legislation
According to representatives of the cement industry, around 22 million tonnes of cement are produced in Uzbekistan per year, around 28 cement plants operate in the country, and total production capacities are approximately twice the current utilization of enterprises. At the same time, cement exports are relatively small — approximately 8–10% of production, or around 1.5 million tonnes per year. The main external destinations remain Kazakhstan and Afghanistan. For cement, this is fundamentally important: the product is sensitive to logistics costs, and an increase in transportation distance quickly reduces the economics of supplies. At the same time, competition from new enterprises built using modern technologies is increasing. Newer equipment makes it possible to reduce specific fuel and electricity consumption, increase productivity and operate at higher utilization. An additional risk factor is the dependence of enterprises on imported coal, including from Kazakhstan and Kyrgyzstan. This simultaneously increases production costs, logistics risks and the carbon footprint of production.
At the same time, energy consumption of Uzbek enterprises in the range of 80–90 kWh/t itself is already close to international benchmarks: IFC indicates a typical range of approximately 80–120 kWh per tonne of cement, therefore simply reducing electricity consumption cannot be the only direction of modernization. The main effect should be sought simultaneously in clinker production efficiency, fuel consumption, clinker factor, cement composition, logistics and production management.
From 1 January 2026, the EU CBAM mechanism entered its definitive regime. Cement is included in the list of regulated CBAM goods. Importers must declare embedded emissions and purchase the corresponding quantity of CBAM certificates, the price of which is linked to the price of EU ETS allowances. Even if today exports of Uzbek cement to the EU are practically absent, CBAM is effectively becoming an international benchmark for assessing the carbon intensity of industrial products. This will matter for future exports, international financing, supplies to international contractors, requirements of banks and investors.
In addition, climate regulation is developing directly in Uzbekistan. In July 2025, Law of the Republic of Uzbekistan No. O‘RQ-1073 “On Limiting Greenhouse Gas Emissions” was adopted, providing for state accounting of emissions, target indicators for emission reductions and development of a monitoring system. Carbon market infrastructure is also being created: from 2026, the creation of a National Carbon Registry and mechanisms for the implementation of carbon units under Article 6 of the Paris Agreement is envisaged, Decree of the President of the Republic of Uzbekistan dated 07.07.2025 No. UP-110.
In neighboring Kazakhstan, its own emissions trading system is already operating, while the national strategy provides for further tightening of specific standards, development of MRV and gradual strengthening of economic carbon regulation.
Thus, the task is not only preparation for CBAM. Carbon intensity is gradually becoming one of the economic indicators of efficiency of an industrial enterprise.
Therefore, traditional enterprises today face a broader question:
“How to modernize production in such a way as to first reduce costs and restore margins, and only then direct the resulting economic effect and attracted financing toward deep decarbonization?”
2. What CO₂ emissions from cement production consist of
To correctly select measures, it is first necessary to understand the structure of emissions. In the cement industry, a benchmark is often used according to which a significant part of emissions is directly related to the chemical process of clinker production, while the remainder is related to energy and fuel. At the same time, it is important to distinguish several sources.
2.1. Process emissions
Clinker is produced through high-temperature firing of limestone raw materials. During calcination, the reaction occurs: CaCO₃ → CaO + CO₂
CO₂ is released directly from the raw materials. Such emissions cannot be eliminated simply by replacing electric motors or reducing electricity consumption. This is why reducing the amount of clinker per tonne of cement is one of the key tools for decarbonization of the industry. In an IFC study for an illustrative cement production chain, calcination was the largest single source of CO₂ — around 479 kg CO₂ per considered tonne of product, with fossil fuel additionally making a significant contribution. (International Finance Corporation)
2.2 Fuel combustion
Coal or other fuel is used to achieve a high temperature in the cement kiln. These are also direct Scope 1 emissions. Therefore, most fuel emissions are also direct.
2.3. Electricity
Electricity is required for: crushing; raw material preparation; grinding; fans; pumps; conveyors; clinker production; cement grinding; packaging. Emissions from purchased electricity relate predominantly to Scope 2.
2.4. Raw materials and logistics
Emissions associated with the following are formed separately: extraction of raw materials; production of additives; transportation; fuel supplies; other supply chain processes.
They become particularly important when assessing the carbon footprint of products, LCA, EPD and Scope 3.
In HPBS studies for concrete products, raw material transportation routes were modeled separately for each component. In one case, the delivery distance for cement was 197 km, for other materials — 44–257 km, and for one type of aggregate — up to 950 km. This shows why logistics should be included in the product carbon footprint model.
3. Coal — a carbon and economic risk for Uzbekistan
According to industry data, specific consumption may amount to around 140 kg of coal per tonne of cement. If this indicator is conditionally applied to a production volume of 22 million tonnes, this corresponds to approximately 3.1 million tonnes of coal per year. At the same time, part of the fuel is supplied from Kazakhstan and Kyrgyzstan. Therefore, the fuel issue for the cement industry has several dimensions at once: cost; currency risks; stability of supplies; transportation costs; dependence on neighboring states; emissions from transportation; carbon footprint of the final product.
Therefore, optimization of cement production in Uzbekistan should include not only CO₂ reduction, but also increased localization of energy and raw material supply chains.
For correct technological comparison of enterprises, it is better to use not only the indicator: kg of coal / t of cement, but primarily: kg of fuel / t of clinker. Since the amount of clinker in a tonne of finished cement may differ significantly.
4. Roadmap for modernization of a cement plant
It is important to understand and plan which measures will provide the enterprise with an economic effect now and allow it to accumulate resources for the next stage of modernization. How to gradually reduce production costs, energy intensity and the carbon footprint of products with a subsequent transition to deeper technological re-equipment.
Proposed roadmap for modernization of a cement plant
| Stage | What we do | Result |
| 0. Diagnostics | Production, energy, technological and carbon audit | Determination of baselines |
| 1. Quick solutions | Adjustment of the kiln, grinding, drives, fans and automation; reduction of downtime and losses | Savings without major CAPEX |
| 2. Energy modernization | Efficiency of kilns, clinker coolers and mills; waste heat recovery | Reduced fuel and electricity consumption |
| 3. Raw materials and formulations | Reduction of the clinker factor; local materials | Reduction of process emissions |
| 4. Fuel and localization | Reduced dependence on imported coal; alternative fuels; renewable energy | Lower CO₂ emissions, production costs and import dependence |
| 5. Deep modernization | LC3 / new calcination lines / major technological equipment | Significant reduction in CO₂ emissions |
| 6. Financing | Decarbonization financing – CIF, IFIs and green financing from IFIs | CAPEX financing |
| 7. MRV | Continuous digital CO₂ reporting and monitoring through Carbon Platform | Monitoring results and compliance with carbon regulation requirements |
One of the most promising pathways for reducing the carbon footprint of cement is reducing clinker content, including production of cements based on calcined clay and limestone, for example LC3 — Limestone Calcined Clay Cement. The technology indeed has great potential. LC3 developers indicate the possibility of reducing CO₂ emissions by up to 40% compared with traditional Portland cement, primarily due to a reduction in clinker content. But for an enterprise with currently low margins, starting a modernization program immediately with major CAPEX is not always rational. The cost of a specific LC3 project may amount to millions of dollars and depends on many factors: availability of suitable local clays; kaolinite content; calcination technology; existing equipment; required productivity; raw material logistics; product quality requirements; possibility of using existing mills, silos and other infrastructure, as well as the implementation timelines of the technology.
5. The first stage of modernization: finding where the plant is losing money
Before purchasing new equipment, it is necessary to build the actual material, energy and carbon balance of the enterprise.
For this, an inspection is carried out and the following are analyzed: kiln operating mode; coal consumption per tonne of clinker; stability of the raw mix; fuel quality; gas temperature; degree of equipment utilization; downtime and idle operation of equipment; mill productivity; separator efficiency; leaks; motor load factors; operation of compressors and fans; heat losses; specific electricity consumption for each technological section.
The purpose of the first stage is to determine where the plant is actually losing money together with energy and CO₂.
For each cement plant, we propose determining at least the following indicators:
| Indicator | Unit |
| Fuel consumption | kg/t clinker |
| Electricity | kWh/t cement |
| Clinker factor | % |
| Scope 1 | kg CO₂/t |
| Scope 2 | kg CO₂e/t |
| Logistics emissions | kg CO₂e/t |
| Production cost | $/t |
| Line utilization | % |
After this, the enterprise can be compared: with itself over time, with average industry indicators, with modern technological benchmarks.
According to industry data, cement production in Uzbekistan may consume around 80–90 kWh of electricity per tonne of cement. This is already close to the lower part of the international range, which the World Bank Group/IFC indicates at approximately 80–120 kWh per tonne of cement. (International Finance Corporation) But this does not mean that there is no savings potential. The overall indicator must be broken down by individual sections.
IFC provides the following approximate structure:
• around 30% of electrical energy — raw material preparation and grinding;
• around 25% — clinker production;
• around 45% — cement grinding, blending, packaging and transportation. (International Finance Corporation)
Therefore, two plants with the same indicator of 85 kWh/t may have completely different technological problems.
6. What measures can be implemented without full reconstruction of the plant
6.1. Optimization of kiln operating mode
At a large enterprise, even a small reduction in fuel consumption per tonne of clinker, multiplied by millions of tonnes of annual production, can provide a significant economic effect.
6.2. Grinding optimization
Grinding is one of the largest consumers of electricity at a cement enterprise.
IFC notes that roller mills and roller-press/high-pressure grinding systems in relevant applications can be significantly more efficient than traditional ball mills — WBG EHS Guidelines provide a benchmark of up to approximately 50% lower energy consumption for specific grinding systems. This does not mean an automatic 50% saving for the entire enterprise, but it shows the scale of the potential of individual technological units. (International Finance Corporation)
6.3. Variable frequency drives
Separate potential lies in the operation of: fans; exhaust fans; pumps; compressors; transportation equipment.
6.4. High-efficiency separators
An efficient separator makes it possible to reduce the amount of material that repeatedly returns for grinding.
6.5. Automation of technological processes
Automated control can simultaneously optimize: mill loading; fuel supply; kiln operation; oxygen content; clinker quality; separator operation; equipment productivity.
For enterprises with a large variation in technological parameters, digital control often becomes one of the first stages of modernization.
Example: what comprehensive modernization can provide
Real projects show that the maximum effect is usually achieved not by one technology, but by a combination of solutions. In a published IFC cement plant project, a combination of vertical roller mills, roller presses, grate clinker cooler, five-stage cyclone preheater, waste heat recovery system and variable frequency drives was designed to achieve around 97.4 kWh/t of cement compared with 119 kWh/t on the existing line. (IFC)
In another industrial project, replacement of the clinker line with installation of an additional cyclone preheater stage and pre-calciner provided for a reduction in thermal consumption from approximately 940 to 760 kcal/kg of clinker, and electricity consumption from approximately 130 to 100 kWh/t of cement. (IFC)
These indicators cannot be directly transferred to Uzbek enterprises. But they clearly demonstrate the principle: technological modernization should begin with measurement of current specific consumption and calculation of the economic potential of each measure.
7. Waste Heat Recovery – heat recovery: returning part of the paid-for energy back
A cement kiln generates significant flows of waste heat. Part of the energy purchased by the enterprise in the form of fuel is lost through: exhaust gases; clinker cooling; equipment casing.
Waste Heat Recovery — WHR makes it possible to use part of this heat for electricity generation.
IFC considers WHR as one of the key energy efficiency solutions for the cement industry; in certain configurations it is capable of noticeably reducing the plant’s demand for purchased electricity. (International Finance Corporation) However, WHR is already an investment project. Before its implementation, it is necessary to determine: temperature and volume of gases; potential capacity; annual generation; CAPEX; electricity savings; payback period. Develop design documentation, implement the technology in accordance with design solutions.
8. Reduction of clinker factor as a key pathway for decarbonization
Energy efficiency makes it possible to reduce the fuel component of emissions. But it does not eliminate CO₂ that is chemically released from limestone. Therefore, the next stage is reducing the clinker content in cement.
IEA considers reducing the global average clinker factor from approximately 0.71 in 2022 to 0.65 by 2030 as one of the key elements of the cement decarbonization pathway. (IEA)
For an enterprise, this means looking for the possibility to replace part of the clinker with: limestone; calcined clays; slags; ashes; and other suitable materials.
HPBS already observes such an effect when conducting LCA of construction products. In a study performed by us, it was recorded that mineral additives are capable of reducing the overall carbon footprint due to partial replacement of the clinker component of cement. And analysis of various concrete formulations shows a significant difference in the amount of cement and mineral components. For example, one of the studied compositions contained 290 kg of cement and 60 kg of mineral powder per 1 m³, while in compositions with modifiers the amount of cement could be reduced to 250 kg/m³ when using additional mineral components.
9. LC3 and technology optimization
For Uzbekistan, LC3 is of particular interest due to the possibility of using local low-grade clays and limestone. Before making an investment decision, it is necessary to conduct a feasibility study.
It should include: mapping of available clays; analysis of the distance to the plant; chemical composition; mineralogical analysis; kaolinite content; laboratory calcination; determination of reactivity; selection of formulations; testing; service life; assessment of cement quality; calculation of carbon footprint; CAPEX; OPEX; production cost of one tonne; comparison with existing cement and implementation timelines.
10. Alternative fuel, technologies and localization of raw materials
The next possible level is partial replacement of coal with alternative fuel or a combination of technologies.
Potentially, the following may be considered:
- municipal solid and industrial waste; used tires; biomass; other materials suitable for the process
- energy technologies, for example heat pumps, renewable sources and energy storage systems
It is important to take into account the stability of supplies of such fuel and operation of technologies.
11. CBAM and new requirements for the carbon footprint of cement
From 1 January 2026, the European Union’s Carbon Border Adjustment Mechanism — CBAM entered its definitive regime. Cement is included in the list of regulated goods. Importers into the EU must declare embedded emissions and, subject to the established conditions, purchase CBAM certificates, the cost of which is linked to the price of EU ETS allowances.
For most cement plants in Uzbekistan, CBAM today is not the main financial risk: the current export destinations of the industry are predominantly outside the EU. However, CBAM shows the direction of market development. Increasingly, a manufacturer is required to be able to answer the questions:
• How much CO₂ is there per tonne of cement?
• Which processes form this indicator?
• Can it be confirmed by source data?
• How will it change after modernization?
• How much does reducing one tonne of CO₂ cost?
This information is becoming necessary not only for CBAM. It is needed for: international financing; EPD; green buildings; climate reporting; international supplies; government decarbonization programs; work with banks and investors.
Full calculations of the impact of the CBAM mechanism on the cost of cement can be studied in the article “Decarbonization of the Cement Industry, the CBAM Mechanism and Financing.”
12. Development of MRV and carbon regulation in Uzbekistan and Central Asia
Regulatory changes are also taking place within the country. In July 2025, Law No. O‘RQ-1073 “On Limiting Greenhouse Gas Emissions” was adopted in Uzbekistan.
The law provides, among other things, for: state accounting of emissions; reduction targets; development of the MRV system — monitoring, reporting and verification; a carbon units registry; rights and obligations of legal entities in the field of emissions regulation.
A separate decree provides for development of Uzbekistan’s participation in the international carbon units market under Article 6 of the Paris Agreement and creation of a National Carbon Registry from 2026.
That is, the issue of systematic emissions accounting is gradually moving from the category of voluntary ESG practice into the area of industrial regulation.
In Kazakhstan, cement is already within carbon regulation. For Central Asia, the example of Kazakhstan is particularly illustrative. Current regulation includes a national emissions trading system, and the list of regulated industries directly includes production of cement, lime, gypsum and bricks. For installations in regulated sectors exceeding the established emissions threshold, carbon quotas are applied. Order of the Minister of Ecology, Geology and Natural Resources of the Republic of Kazakhstan dated 28 March 2022 No. 91.
For Uzbekistan, this is an important regional signal: the carbon indicator of an industrial enterprise is gradually becoming a manageable economic indicator.
13. Carbon Platform for digital accounting and decarbonization management
When an enterprise begins to simultaneously account for: production; raw materials; fuel; electricity; logistics; GHG; CBAM; LCA; EPD; investment measures, maintaining these data only in separate Excel files becomes increasingly difficult.
Therefore, HPBS is developing 7G Carbon Platform as a digital tool for MRV and management of the enterprise’s carbon indicators.
For a cement plant, the digital model may look as follows.
- Clinker level
The following are accounted for: production volume; chemical composition of raw materials; process CO₂; fuel consumption; alternative fuel; electrical energy; kiln productivity.
- Cement level
The following are accounted for: clinker factor; raw materials; grinding energy; packaging.
- Supply chain level
The following are accounted for: suppliers; type of transport; distance; fuel; carbon footprint of raw materials.
As a result, the enterprise receives dynamic indicators:
• kg CO₂e/t clinker
• kg CO₂e/t cement
• Scope 1, Scope 2, Scope 3
• CBAM
• the effect of each modernization or decarbonization scenario
The purpose of such MRV: to see which technological solution today simultaneously reduces CO₂ and the production cost of the enterprise.
14. How to evaluate modernization through CAPEX, OPEX, CO₂ and payback period
For a cement plant, it is not enough to know that a specific technology reduces emissions. It is necessary to determine: how much it costs and how much money it returns to the enterprise.
Therefore, HPBS proposes evaluating each measure simultaneously by five indicators:
CAPEX – OPEX savings – tCO₂ – payback period – cost of reduction of 1 t CO₂.
Transparent risk economics is formed.
| Solution | CAPEX | Economic effect | CO₂ potential | Horizon |
| Optimization of operating conditions | low | high | medium | 0–1 years |
| Variable frequency drives and electric motors | low/medium | medium | low/medium | 0–2 years |
| Optimization of separators and grinding | medium | medium/high | medium | 1–5 years |
| Reduction of the clinker factor | low/medium | potentially high | high | 1–4 years |
| Waste heat recovery | high | high | medium/high | 2–3 years |
| LC3 / technical solution | medium/high | depends on the raw material base | very high | 3–10 years |
| Carbon capture, utilization and storage | very high | currently limited | very high | long term |
It is precisely this approach that makes it possible to structure the program so that savings from the first phase help finance the next one.
15. Uzbekistan received an opportunity for CIF financing of decarbonization of cement plants
Financing may become a critical element of industrial modernization. Uzbekistan was selected for preparation of an investment plan under the Climate Investment Funds Industrial Decarbonization Program.
According to World Bank documents, the potential volume of concessional CIF financing is up to $250 million, and the investment plan is expected to be developed jointly with the World Bank, IFC, ADB and EBRD. For the cement industry, this means an opportunity to prepare a plan of investment projects in advance.
For an international financial institution, the statement “We need to modernize the plant” is not sufficient. A structured project is required: Baseline – technical solution – CAPEX – OPEX savings – CO₂ reduction – financial model – MRV – investment effect. Therefore, technical and carbon assessment of the enterprise should take place before attracting financing, not after.
16. What a pilot program for the cement industry of Uzbekistan may look like
HPBS proposes starting not with an industry-wide program for all plants simultaneously, but with 2–3 pilot enterprises of different technological levels.
For example:
Pilot 1 — traditional plant: relatively high resource consumption and significant potential for operational modernization.
Pilot 2 — more modern production: the main potential may be in cement composition, digitalization, logistics and further reduction of specific indicators.
Pilot 3 — enterprise with LC3 potential: availability of local clay and the possibility of forming a separate investment project.
Stage 1. Data analysis and formation of the baseline
Data for 12–24 months are analyzed: production, clinker, cement, coal, electricity, product composition, raw materials, logistics, downtime, production cost.
Stage 2. Technical assessment
Together with the enterprise’s technologists and energy specialists, technological processes and their components are analyzed
Stage 3. Carbon footprint and MRV
The following are calculated: Scope 1, 2, material Scope 3, product carbon footprint and CBAM parameters.
HPBS has already performed a similar inventory at the level of cement products. In the conducted study, the carbon footprint was calculated in accordance with international standards ISO 14040, ISO 14044 and EN 15804, and the results were used as the basis for an Environmental Product Declaration — EPD. The calculations showed that cement production was the largest source of the carbon footprint of various concrete compositions. For example, for one of the studied compositions, the total indicator was around 231 kg CO₂e/m³, and contribution analysis confirmed the dominance of cement.
Stage 4. Investments and decarbonization plan
Projects are divided into three horizons: 0–2 years, 2–5 years, 5–10 years, a feasibility study, targets and investor opportunities are prepared.