HARNESSING THE POWER OF DEMAND: DESIGN PRINCIPLES FOR DEMAND SIGNAL INITIATIVES

The guide defines demand signal initiatives as campaigns and alliances that commit companies and public bodies to purchasing net-zero products and services, thereby incentivizing supply-side investment. It outlines a five-step process for setting up these initiatives, identifies key target audiences across the value chain, and provides a case study on the steel industry and a list of existing global initiatives such as SteelZero and the First Movers Coalition.

• Demand signal initiatives are designed to accelerate the commercialization and adoption of net-zero technologies by aggregating the buying power of companies and public procurement bodies, which provides suppliers and investors with the confidence to invest in these solutions.
• There is an urgent need for these initiatives because approximately 50% of the technologies required to reach net-zero emissions by 2050 are still under development.
• The guide proposes a five-step practical framework for setting up a demand signal initiative: scoping the market gap, defining a theory of change, gathering a critical mass of C-level engagement, collaborating with stakeholders, and basing monitoring on the initial objective.
• Demand signal initiatives are most effective in regions with strong political momentum, in sectors with high emission reduction potential but low supply of solutions, and when they remain technology-neutral to allow markets to determine the most efficient technology choices.
• In the steel industry, which accounts for about 8% of global CO2 emissions, initiatives like SteelZero have found that members require higher levels of awareness and support than expected to commit to net-zero by 2050, and that building trusted relationships is critical, especially in China, which produces about 50% of the world's steel.
• The document identifies various types of initiatives, including 'Green public procurement campaigns' (e.g., Industrial Deep Decarbonisation Initiative), 'Broad demand campaigns' (e.g., RE100, EV100, ConcreteZero), and 'Early market seeding campaigns' (e.g., First Movers Coalition).

APA

We Mean Business Coalition (2022). HARNESSING THE POWER OF DEMAND: DESIGN PRINCIPLES FOR DEMAND SIGNAL INITIATIVES. https://www.wemeanbusinesscoalition.org/wp-content/uploads/2022/07/WMBC_Demand_Signal_Initiatives.pdf

Chicago

We Mean Business Coalition. HARNESSING THE POWER OF DEMAND: DESIGN PRINCIPLES FOR DEMAND SIGNAL INITIATIVES. 2022. https://www.wemeanbusinesscoalition.org/wp-content/uploads/2022/07/WMBC_Demand_Signal_Initiatives.pdf.

Wikipedia

{{cite report |author=We Mean Business Coalition |title=HARNESSING THE POWER OF DEMAND: DESIGN PRINCIPLES FOR DEMAND SIGNAL INITIATIVES |date=July 2022 |url=https://www.wemeanbusinesscoalition.org/wp-content/uploads/2022/07/WMBC_Demand_Signal_Initiatives.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wemeanbusinesscoalition2022harnessing, author = {{We Mean Business Coalition}}, title = {{HARNESSING THE POWER OF DEMAND: DESIGN PRINCIPLES FOR DEMAND SIGNAL INITIATIVES}}, institution = {We Mean Business Coalition}, year = {2022}, month = jul, url = {https://www.wemeanbusinesscoalition.org/wp-content/uploads/2022/07/WMBC_Demand_Signal_Initiatives.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }