This second part of our research into decarbonizing cement explores the regulatory environment that the European sector could be facing in light of the EU's envisaged more stringent regionwide carbon legislation, and how we can analyze this from a credit perspective. We leverage S&P Global Ratings' data on the industry to perform a scenario analysis of the potential implications of the regulations for our ratings on cement companies. This research complements the first part of our research, "Decarbonizing Cement Part One: EU Makers Are Reducing Emissions While Building Business Resilience," published Oct. 27, 2022, in which we present our views on trends in the European cement industry’s carbon footprint and manufacturers' decarbonization strategies.