The CSI has been exploring a variety of policy options to see which may offer opportunities for faster, more effective, large-scale responses to climate change. A sector-based analysis of the problem offers a number of possible advantages over more traditional geographically organized responses.

A sectoral approach consists of a combination of policies and measures developed to enhance efficient, sector-by-sector greenhouse gas mitigation. Under this approach, producers and their host country governments adopt a set of emissions goals, which may vary by country, or take other coordinated action to help combat climate change.

A sectoral approach offers significant national control to tailor management of emissions and efficiency goals to local circumstances and capabilities. For developing countries, it offers a policy structure to encourage efficiency gains without limiting economic development, and it offers a chance to share and benefit from best practices and participate in technology development.

The CSI’s economic model of the sectoral approach for the cement industry (2009) showed that this concept would result in significantly larger greenhouse gas emissions reductions in the cement industry worldwide compared to global intensity targets. In the CSI model, developed countries would adopt cap & trade systems and developing countries intensity targets.

The main levers to reduce GHG emissions in the cement industry, identified by the CSI model, are:

• Thermal and electric energy efficiency – well understood by industry, but offers relatively small contributions as modern plants approach theoretical efficiency limits
• Alternative fuels – the use of alternative fuels and biomass to heat cement kilns should be incentivized; this needs respective changes in national and local waste management regulations
• Clinker substitution – this needs cement standards in some countries to be changed to allow more widespread use of blended cements
• Carbon capture and storage (CCS) – This will be a critical technology; it is however not yet developed commercial application in cement plants. Additional research, development, and pre-commercial demonstration projects are necessary, for which government support and investment will be needed.

The CSI has developed a number of tools that can support the implementation of a Sectoral Approach:

• The CO₂ accounting and reporting protocol, used by the majority of the global cement industry. CSI members have their CO₂ reports assured by an independent third party.
• The global database of plant-specific energy and emissions data (“Getting the Numbers Right”) to allow analysis and benchmarking of industry performance. It represents the world's best data available for any one sector, covering one third of global cement production, with over 80% of data independently verified.