From GERD to Green Growth: Ethiopia’s Cement Industry at a Crossroads.

Great Ethiopian Renaissance Dam (GERD). Photo: Ministry of Planning & Development, Ethiopia

The Great Ethiopian Renaissance Dam (GERD) stands as a powerful symbol of Ethiopia’s economic transformation. Formally inaugurated during the Africa Climate Summit, GERD is Africa’s largest hydroelectric dam — built with more than 10 million tonnes of cement.

Ethiopia’s shift from a largely agriculture-based economy is fueling the growth of industry, particularly cement production, which sits at the heart of the country’s development story. New homes, schools, and hospitals are essential, but they also bring the risk of rising emissions. Cement is among the most carbon-intensive materials, contributing around 7% of global CO₂ emissions.

As one of the first African countries to join LeadIT, Ethiopia has since 2021 demonstrated strong commitment to the goals of the Paris Agreement. Determined to meet the twin challenges of building a new economy while delivering on climate targets,  the Ethiopian government turned to LeadIT to explore models of best practice. From the outset, Ethiopia emphasized collaboration: industry and government working together to identify scalable technologies and solutions.

Lessons from India

Ethiopia had already mapped out some low-carbon pathways, including replacing coal with biomass in cement kilns, developing LC3 cement using calcined clay to replace part of the limestone responsible for process emissions, testing alternative binders, and implementing energy efficiency measures. What was missing was a clearer understanding of how these pathways were being applied in another emerging economy. India, with its fast-growing cement sector and track record of innovation, soon became the natural focus.

In April 2025, a delegation of Ethiopian government and industry representatives traveled with LeadIT to India. Over four days, they investigated low-carbon solutions and explored how knowledge sharing and capacity building could address one of the toughest decarbonization challenges.

At the ACC/Adani Cement plant in Wadi, delegates saw first-hand how waste-derived alternative fuels (AF) and raw materials (AFR) were being integrated, alongside a Waste Heat Recovery System to reduce reliance on fossil fuels. AF inputs used here include pharma waste and old tyres. Discussions at the site emphasized the role of enabling policies in supporting the factory’s transition

1745408831821 (1)

A workshop at the Indian Institute of Technology in Delhi brought the delegation together with Professor Shashank Bishnoi, a world-renowned cement chemist and India’s lead on Limestone Calcined Clay Cement (LC3). As the architect of India’s LC3 standards, Dr. Bishnoi shared insights into scaling new materials and overcoming technical barriers.

The visit ended with a reception hosted at the Ethiopian Embassy in India, whre the delegation met the Ethiopian Ambassador Fesseha Shawel Gebre and Swedish Ambassador Jan Thesleff. Discussions round the table considered on how Common But Differentiated Responsibilities (CBDR) intersect with equitable and just transitions. The EU’s Carbon Border Adjustment Mechanism (CBAM) and broader carbon pricing policies also featured in the exchange.

img 1434[50]
Reception at the Ethiopian Embassy in India. Photo: LeadIT
For the Ethiopian delegation, the visit highlighted how Ethiopia’s abundant biomass resources and renewable electricity potential could be harnessed more extensively to support cement decarbonization. Energy efficiency and clinker substitution emerged as equally critical lessons with direct relevance to Ethiopia’s cement industry.

A commitment to low-carbon cement pathways

In September 2025, Addis Ababa hosted the second Africa Climate Summit. With a focus on amplifying African voices in global climate action and championing homegrown adaptation and mitigation solutions, it provided the ideal venue for further dialogue on cement decarbonization.

During the Summit, Ethiopia launched its third-generation Nationally Determined Contribution (NDC 3.0). NDCs are countries’ national climate action plans under the Paris Agreement and this update from Ethiopia lays out detailed sectoral pathways and milestones, including for cement. But it also makes clear that achieving these targets will require significant external finance, technology transfer, and capacity-building support.

2710c610 e862 48f9 a75a 6587a4508a9e
From left to right: Gezehagn Dechassa, Ethiopian Cement Producers Association and Ethiopian Industry Minister,Minister Hassan Mohammed, sign the joint statement on cement decarbonization.

LeadIT, invited by Ethiopia’s Ministry of Planning and Development and Ministry of Industry, convened two events at the Summit to explore how public–private partnerships could accelerate progress. A tangible outcome was the signing of a joint statement between the Ministry of Industry and the Ethiopian Cement Producers Association. This agreement committed to a comprehensive technical and economic assessment of low-carbon cement technologies and the enabling policies needed to deploy them.

With thanks to Nubia Media & Communications. Library footage from InOldNews.

Next steps

Ethiopia’s journey shows how collaboration, knowledge exchange, and political will can lay the foundations for industrial transformation. The work has only just begun, but as Ethiopia looks ahead, it has the potential not only to reshape its own cement sector but also to become a model that inspires other African countries on the road to green industrialization. As part of that ambition, Ethiopia hopes to host COP32 in 2027, having formally launched a bid to stage the climate conference in Addis Ababa.

The pathway for a net zero cement industry is complex but it is a global and achievable target. This transition is an opportunity, it is an opportunity to future-proof our industries, to create new green jobs, to decrease energy costs through efficiency and through positioning Ethiopia as a continental leader in sustainable industrial manufacturing....the challenges are significant but we have to solve them together.

H.E: Hassan Mohammed

State Minister, Ministry of Industry

Insights.

You may also be interested in these LeadIT analyses.

View all

10 Sep 2025

Cement decarbonization – Ethiopian solutions

Written by Jane Birch

In an important milestone for Ethiopia’s sustainable growth journey, the Ethiopian Ministry of Industry and the Ethiopian Cement Producers Association have signed a new agreement to work together to shape the future of low-emissions cement production.

Cement

Emerging Markets

Ethiopia

Partnerships

Roadmaps for Industry Transition

Read full article

3 Jul 2025

Leadership for Inclusive Industrial Transition

Written by Arati Davis, Jane Birch

LeadIT's first-ever Global Business Leader Summit brought together senior industry executives, innovators, and institutional partners from across regions and sectors to explore how in a time of geopolitical uncertainty business can drive green industrial transformation.

Cement

Emerging and Developing Economies

Leadership

Partnerships

Steel

Read full article

25 Jun 2025

Ecometrix – a Swedish AI start up joins LeadIT

Written by Jane Birch

Ecometrix, a Swedish AI start up has joined LeadIT. The company uses AI tools to support the decarbonization of heavy industry, especially within the construction and concrete sectors.

AI

Cement

technology

Read full article

16 May 2025

SEK 10 million funding available for Swedish companies to work with Indian partners

Written by Jane Birch

A SEK 10 million call for project proposals under the LeadIT Industry Transition Partnership (ITP) is now open for Swedish companies to work in collaboration with Indian partners to drive decarbonization in steel and cement.

Cement

India

Industry Transition Partnership

Steel

Read full article

7 May 2025

Joining Forces for a Greener Future: JSW Cement is the latest company member of LeadIT

Written by Jane Birch

JSW Cement has joined LeadIT strengthening the Group's presence in India and in the global cement industry. Decarbonizing this sector is vital to global climate goals.

Building materials

Cement

co-development

Developing Countries

Emerging Markets

Industry Transition Partnership

Innovation

technology

Value Chain

Read full article

24 Oct 2024

Cement delegation visits Sweden

Written by Jane Birch

A delegation representing the Indian cement industry including manufacturers and trade associations accompanied by representation from the Indian government has visited Sweden on a fact finding visit hosted by LeadIT

Building materials

Cement

co-development

Industry Transition Partnership

Innovation

Partnerships

technology

Read full article