Decarbonizing the built
environment
Cement & Concrete
Emissions from the production of cement and concrete constitute approximately 8% of all global emissions, and demand is expected to grow for this crucial construction material by around 40% by 2050. Low-emissions solutions for cement and concrete exist, however the supply is limited and carries a price premium compared to conventional products. Direct concrete purchasers operate under tight margins and – absent regulatory requirements – are unlikely to pay the premium or sign long-term off take commitments without additional support. Cement and concrete producers need clear signals that there is sizable demand for low-emissions products to justify the high capital costs required to finance low-carbon cement production.
In response to these challenges, GMA and RMI have recently announced a partnership to establish an initiative focused on facilitating the deployment of capital towards low-carbon cement and concrete to dramatically reduce embodied emissions in the built environment. The GMA-RMI Concrete initiative will consist of two parts: first leading a multi-stakeholder engagement process to design a credible measurement and book-and-claim system, and, subsequently, establishing a collective procurement processes for both physical and attribute offtake similar to other programs such as the Sustainable Aviation Buyers Alliance (SABA), GMA Trucking, and Sustainable Steel Buyers Platform.
Innovating concrete solutions
Our goal is to decarbonize the concrete sector by engaging with companies who want to reduce emissions from construction materials but are unable to do so given the limited availability of low-carbon cement and concrete solutions in their geographic regions and lack of clear business models that reward companies for investments they make in reducing emissions in their supply chains. In the book-and-claim model GMA is designing in partnership with RMI, concrete end users will be able to purchase environmental attribute certificates (EACs) directly from low-carbon producers to address their value chain emissions, while providing the required green premium to ensure suppliers of low-carbon concrete products recoup their costs.
This initiative is in its early phases. We are preparing and engaging with the market to identify interested parties to provide feedback and perspectives on the system design. Once designed, GMA and RMI will identify potential EAC and physical purchasers to facilitate the acceleration of low-carbon cement and concrete production facilities or retrofits. Further details on how to get involved in the book-and-claim system design process will be provided on this page as this program continues to develop.
Cement and concrete make up 8% of global emissions
Demand for concrete and cement is expected to grow 40% by 2050
Limited pathways for end users to decarbonize
Sponsors should be concrete end users that are interested in engaging with GMA to:
1
Review and align on measurement methodologies for attributes or certificates
2
Build the book-and-claim structure for concrete attributes
3
Identify additional key stakeholders to engage
4
Provide market intelligence to ensure GMA designs the system in a way that addresses real business and sustainability needs
Working Group
GMA is helping stand up a working group of companies to design a book and claim framework for concrete. Details to come!