Filling gaps in the policy package to decarbonise production and use of materials

The production of basic materials, including cement, iron, steel, aluminium, and chemicals, accounted for approximately 25% of global CO2 emissions in 2014. The author contends that deep decarbonisation has been limited by a lack of knowledge regarding climate-friendly alternatives and a policy focus on carbon leakage risks. To overcome this, the brief identifies three primary policy gaps: incomplete incentives for recycling, a lack of short- and long-term markets for climate-friendly options, and missing signals regarding the phase-out of carbon-intensive production. Proposed solutions include green public procurement, project-based carbon contracts for difference (CfD), and a consumption charge on basic materials integrated into the EU ETS. The document emphasizes that the European materials sector is in a 'precarious limbo' where investment decisions over the next 10 to 15 years will determine whether assets are closed or transitioned to climate-friendly options.

• The production of basic materials—specifically cement, iron and steel, paper and board, aluminium, and chemicals and petrochemicals—was responsible for roughly 25% of global CO2 emissions in 2014.
• Three interrelated policy gaps currently hinder substantial progress in decarbonising the materials sector: incomplete incentives for recycling, the absence of markets for climate-friendly options, and a lack of policy signals that carbon-intensive production will be phased out.
• To address the gap in markets for climate-friendly options, the document prioritizes three specific policy instruments: green public procurements for lead markets, project-based carbon contracts for difference to stabilize revenue for new materials and processes, and a consumption charge on basic materials integrated into the EU ETS.
• The materials sector in Europe faces a critical investment window over the next 10 to 15 years, as existing CO2-intensive assets will either require major reinvestment or closure.

APA

Climate Strategies (2018). Filling gaps in the policy package to decarbonise production and use of materials. https://climatestrategies.org/wp-content/uploads/2018/06/CS-DIW_Policy-brief-designed_2.pdf

Chicago

Climate Strategies. Filling gaps in the policy package to decarbonise production and use of materials. 2018. https://climatestrategies.org/wp-content/uploads/2018/06/CS-DIW_Policy-brief-designed_2.pdf.

Wikipedia

{{cite report |author=Climate Strategies |title=Filling gaps in the policy package to decarbonise production and use of materials |date=June 2018 |url=https://climatestrategies.org/wp-content/uploads/2018/06/CS-DIW_Policy-brief-designed_2.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatestrategies2018filling, author = {{Climate Strategies}}, title = {{Filling gaps in the policy package to decarbonise production and use of materials}}, institution = {Climate Strategies}, year = {2018}, month = jun, url = {https://climatestrategies.org/wp-content/uploads/2018/06/CS-DIW_Policy-brief-designed_2.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }