Building Blocks

The production of basic materials accounts for approximately 25% of global CO2 emissions and 16% of EU GHG emissions. While industry commitment to carbon neutrality by 2050 is growing, current innovation funds and carbon pricing are insufficient to make climate-friendly technologies commercially viable. The Climate Friendly Material Platform proposes a policy package including a 'Climate Contribution' as an alternative to Border Tax Adjustments, Carbon Contracts for Difference (CCFDS), Contracts for Difference for Renewables, Green Public Procurement (GPP), and Product Carbon Requirements to stimulate investment and prevent the relocation of production to regions with less stringent climate policies.

• The production of basic materials, including cement, iron, steel, paper, aluminium, chemicals, and petrochemicals, is a major driver of climate change, representing about 25% of global CO2 emissions and 16% of greenhouse gas emissions in the EU.
• Existing mechanisms such as carbon pricing and innovation funds are inadequate to transform the materials market because climate-friendly production technologies remain significantly more expensive than current processes.
• The Climate Friendly Material Platform recommends a specific policy package to incentivize low-carbon materials: a 'Climate Contribution' charge on carbon-intensive materials sold in Europe (proposed as a pragmatic alternative to Border Tax Adjustments), Project-based Carbon Contracts for Difference (CCFDS), Contracts for Difference for Renewables, Green Public Procurement (GPP), and Product Carbon Requirements to ban carbon-intensive materials.
• The proposed policy framework aims to ensure a just industrial transition by creating a business case for climate-neutral technologies while preventing the relocation of jobs and production to regions with less stringent climate policies.

APA

Neuhoff, K., Chiappinelli, O., Gerres, T., Haussner, M., Ismer, R., May, N., Pirlot, A., & Richstein, J. (2019). Building Blocks. Climate Strategies. https://climatestrategies.org/publication/buildingblocks/

Chicago

Neuhoff, Karsten, Olga Chiappinelli, Timo Gerres, Manuel Haussner, Roland Ismer, Nils May, Alice Pirlot, and Jörn Richstein. Building Blocks. Climate Strategies, 2019. https://climatestrategies.org/publication/buildingblocks/.

Wikipedia

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BibTeX

@techreport{neuhoff2019building, author = {Neuhoff, Karsten and Chiappinelli, Olga and Gerres, Timo and Haussner, Manuel and Ismer, Roland and May, Nils and Pirlot, Alice and Richstein, Jörn}, title = {{Building Blocks}}, institution = {Climate Strategies}, year = {2019}, month = oct, url = {https://climatestrategies.org/publication/buildingblocks/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }