Demand Aggregation 101

Demand aggregation consolidates fragmented demand from multiple buyers into a single, larger signal to help suppliers overcome the high costs and risks associated with building low-emissions infrastructure. This process helps bridge the "green premium"—the price difference between conventional and low-emissions alternatives—by providing financiers with predictable, long-term cash flows through collective procurement and advance purchasing agreements. The document highlights the use of "book and claim" mechanisms to allow indirect procurement of environmental attributes when direct physical procurement is not possible. RMI and its partners are implementing this strategy through four specific initiatives: the Sustainable Aviation Buyers Alliance (SABA), the Zero Emissions Maritime Buyers Alliance (ZEMBA), the Sustainable Steel Buyers Platform (SSBP), and a phased approach for low-emissions cement and concrete.

• Demand aggregation is the process of combining individual demand from various buyers into a single signal to create a stronger market incentive for low-emissions products and help suppliers accelerate new investments.
• The strategy addresses the "green premium," where low-emissions alternatives are more expensive than conventional ones due to high upfront capital expenses and infrastructure requirements.
• Aggregated demand is particularly critical during project financing, as it provides lenders with the predictable, long-term cash flows necessary to ensure producers can meet their obligations.
• Book and claim mechanisms enable indirect procurement by allowing buyers to purchase environmental attributes separately from the physical product, which is essential for companies with complex supply chains or those purchasing services rather than materials.
• The Sustainable Aviation Buyers Alliance (SABA) completed an RFP in April 2024 where 20 corporate customers committed approximately $200 million over five years to purchase sustainable aviation fuel certificates (SAFc), representing about 50 million gallons of high-integrity SAF.
• The Zero Emissions Maritime Buyers Alliance (ZEMBA) completed its first collective tender in April 2024, with over a dozen companies committing to purchase environmental attributes for over 1 billion TEU/miles of zero-emission shipping on a route from Singapore to Rotterdam for 2025-2026.
• The Sustainable Steel Buyers Platform (SSBP) is launching a Request for Proposal in September 2024 for low-emissions steel to be delivered into North America before 2030.

APA

RMI (2024). Demand Aggregation 101. https://rmi.org/resources/demand-aggregation-101/

Chicago

RMI. Demand Aggregation 101. 2024. https://rmi.org/resources/demand-aggregation-101/.

Wikipedia

{{cite report |author=RMI |title=Demand Aggregation 101 |date=18 September 2024 |url=https://rmi.org/resources/demand-aggregation-101/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2024demand, author = {{RMI}}, title = {{Demand Aggregation 101}}, institution = {RMI}, year = {2024}, month = sep, url = {https://rmi.org/resources/demand-aggregation-101/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }