Close to 50% of companies around the world say they’d pay a premium for lower-emission steel and concrete.
45% of survey respondents said they’d be willing to pay a premium for emissions reductions of 25% or higher for steel, while 57% would be willing to do so for reductions exceeding 50%.
For concrete, the numbers were 40% and 49%, respectively.
The survey, conducted by engineering and design consultancy Ramboll and the non-profit Climate Group, received answers from 259 companies representing 21 industries in 42 countries, with a preponderance of European countries.
Higher willingness than last year
Most respondents said they had a direct influence on steel and concrete purchasing decisions. Companies included developers, manufacturers, utilities, and public sector organisations.
52% of respondents said they had a higher willingness to pay a premium than they did a year ago. And 34% reported no change in their stance.
78% of respondents said they expected lower-emission steel and concrete to be standard in the next decade.
The greatest barriers to adoption were given as cost (84%), industry conservatism (37%), and lack of knowledge (33%).
Many said governments have a role to play through tax incentives, credits, and subsidies (69%), carbon pricing (50%), and minimum product standards or embodied carbon limits (43%).
Together, steel and concrete are responsible for 15% of global emissions.
‘The appetite is here’
“This report is a real temperature check of the market,” said Jen Carson, head of industry at Climate Group.
“It’s hugely encouraging to see the appetite is here, now, for organisations to pay a premium for lower-emission steel and concrete.”
Ramboll’s chief operating officer Michael Simmelsgaard said the results send “a strong signal to the market”.
“To accelerate progress, all actors now need to come together, from policymakers and investors to off-takers of steel and concrete, as well as end users who will need to accept a price premium until the market matures.
“Let’s build on the momentum we have to drive a rapid and lasting decarbonisation of heavy industries on the path to global net zero.
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