A groundbreaking report released at Climate Week NYC by Climate Group and Ramboll unveils a significant shift in the global business landscape towards sustainable construction materials.
Nearly half of the surveyed companies expressed willingness to pay a premium for lower-emission steel and concrete, signalling a robust demand for eco-friendly alternatives in these carbon-intensive industries.
The study, titled The Steel and Concrete Transformation: 2024 market outlook on lower emission steel and concrete, surveyed over 250 companies across 42 countries and 21 industries.
The results paint an optimistic picture of the future of sustainable construction:
- 45 per cent of respondents would pay more for steel with 25 per cent or higher emissions reductions
- 57 per cent would pay a premium for steel with over 50 per cent emissions reductions
- For concrete, these figures stand at 40 per cent and 49 per cent respectively
The report highlights a significant shift in market sentiment, with 52 per cent of respondents showing increased willingness to pay for lower-emission materials compared to a year ago.
Moreover, 78 per cent of surveyed companies anticipate that these sustainable materials will become standard within the next decade.
Despite the positive outlook, several barriers to widespread adoption remain:
- Cost (84 per cent)
- Industry conservatism (37 per cent)
- Lack of knowledge (33 per cent)
To accelerate the transition, businesses are calling for decisive government intervention.
Key policy recommendations include:
- Financial incentives: tax credits and subsidies (69 per cent)
- Carbon pricing mechanisms (50 per cent)
- Minimum product standards or embodied carbon limits (43 per cent)
Jen Carson, Head of Industry at Climate Group, emphasised the significance of these findings: “Business leaders are not only calling for change — they’re enacting it. This report is a real temperature check of the market. It’s hugely encouraging to see the appetite is here, now, for organisations to pay a premium for lower emission steel and concrete.”
Michael Simmelsgaard, Chief Operating Officer at Ramboll, added: “The fact that more companies are now willing to pay a premium for lower emission steel and concrete sends a strong signal to the market. To accelerate progress, all actors now need to come together.”
With steel and concrete production accounting for 15 per cent of global industrial greenhouse gas emissions, the decarbonisation of these sectors is crucial for meeting Paris Agreement targets.
This report suggests that market forces are aligning with climate objectives, potentially catalysing a transformation in these hard-to-abate industries.
As the world grapples with the urgent need to reduce carbon emissions, this shift in business attitudes could mark a turning point in the fight against climate change, driving innovation and sustainability in the construction sector.
