Building demand for low-carbon materials

The report concludes that while the EU Emissions Trading System (EU ETS) remains the primary driver for industrial decarbonisation, current carbon prices alone are insufficient to trigger the massive investments required for deep decarbonisation in the steel and cement sectors. It argues that demand-side measures—specifically Green Public Procurement (GPP) and sustainable product regulations—can provide the necessary market signals to build technological capacity and avoid carbon lock-in. The study highlights that government-driven initiatives have significantly more potential than voluntary industry pledges, though the latter can serve as a short-term bridge. Key recommendations include harmonising low-carbon product definitions across EU Member States and exploring Carbon Contracts for Difference (CCfDs) to bridge the 'green premium' cost gap.

• The EU Emissions Trading System (EU ETS) is the most significant driver for industrial decarbonisation, though its historical impact was limited by low, volatile prices and the generous allocation of free allowances.
• Current EU ETS prices are generally not high enough to provide a standalone business case for the massive upfront investments needed for deep decarbonisation in heavy industry.
• Green Public Procurement (GPP) is identified as one of the most powerful demand-side tools due to the government's role as a major consumer, but it is currently hindered by a lack of binding rules and fragmented national implementation.
• Regulatory product standards, such as the Ecodesign for Sustainable Products Regulation (SPR) and the Construction Product Regulation (CPR), can drive demand, but require harmonised definitions of 'low-carbon' across Member States to be effective.
• The steel industry expresses greater concern than the cement industry regarding the Carbon Border Adjustment Mechanism (CBAM), arguing that its current scope allows international competitors to circumvent the levy by importing finished or semi-finished products.
• Voluntary corporate purchasing pledges, such as those by the First Movers Coalition, can kickstart markets and provide investment guarantees for first-movers, but are too fragmented to achieve macro-level climate targets.
• Carbon Contracts for Difference (CCfDs) are proposed as an innovative way to bridge the 'green premium' by paying the difference between the market price and the cost of a carbon-neutral product.
• Decarbonisation of the steel sector focuses on hydrogen-based Direct Reduced Iron (DRI) and CCUS, while the cement sector relies heavily on CCUS (expected to provide 42% of cuts), alternative fuels, and clinker substitution.

APA

Bolscher, H., Torres, P., Schers, J., Finesso, A., Miari, A., & Opinska, L. G. (2023). Building demand for low-carbon materials. Clean Air Task Force. https://cdn.catf.us/wp-content/uploads/2023/12/08151044/building-demand-low-carbon-materials.pdf

Chicago

Bolscher, Hans, Perla Torres, Jules Schers, Andrea Finesso, Aurora Miari, and Liliana Guevara Opinska. Building demand for low-carbon materials. Clean Air Task Force, 2023. https://cdn.catf.us/wp-content/uploads/2023/12/08151044/building-demand-low-carbon-materials.pdf.

Wikipedia

{{cite report |last1=Bolscher |first1=Hans |last2=Torres |first2=Perla |last3=Schers |first3=Jules |last4=Finesso |first4=Andrea |last5=Miari |first5=Aurora |last6=Opinska |first6=Liliana Guevara |title=Building demand for low-carbon materials |publisher=Clean Air Task Force |date=September 2023 |url=https://cdn.catf.us/wp-content/uploads/2023/12/08151044/building-demand-low-carbon-materials.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bolscher2023building, author = {Bolscher, Hans and Torres, Perla and Schers, Jules and Finesso, Andrea and Miari, Aurora and Opinska, Liliana Guevara}, title = {{Building demand for low-carbon materials}}, institution = {Clean Air Task Force}, year = {2023}, month = sep, url = {https://cdn.catf.us/wp-content/uploads/2023/12/08151044/building-demand-low-carbon-materials.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }