Will lower-emission concrete be the standard within 5 years?

The concrete sector is in flux, with organisations increasingly committing to decarbonisation and aiming for net-zero by 2050. The 2024 survey shows that many respondents are ready to buy lower-emission concrete now. 40% of respondents say that they are willing to pay a premium for CO2 reductions exceeding 25%, and 49% for CO2 reductions exceeding 50%. However, 10-20% are not willing to pay any premium, and a third of respondents are uncertain, revealing knowledge gaps about lower-emission materials. 56% of respondents confirm that lower-emission concrete is part of their carbon reduction strategy for addressing scope 3 emissions. Despite this, there is a gap between the strategic importance placed on decarbonisation and the actual willingness to pay for lower-emission materials, suggesting some companies may expect these materials at no extra cost.

While the willingness to pay varies across sectors and geographies, the interest in exploring lower emission materials is accelerating and sends the signal that organisations are increasingly ready to act. Compared to last year, 52% of respondents reported a greater willingness to explore lower-emission materials, with only 3% indicating a decline.

The survey highlights the most significant barriers that need to be overcome in the coming years. Not surprisingly, cost is considered the biggest barrier with 84% of respondents indicating that they see this as key to holding back large-scale uptake. Other significant barriers include industry conservatism (indicated by 37% of respondents), lack of knowledge (33%), quality and credibility of data from suppliers (29%), and concerns about quality of the lower emission materials (22%). The respondents suggested ways to overcome some of these barriers, such as leveraging buying power to help reduce costs, addressing knowledge gaps through technical training, strategic and financial analysis, and improving supplier negotiations. Initiatives like ConcreteZero are working to enhance data transparency and supply chain engagement to help accelerate decarbonisation efforts across the industry.

While some buyers are aiming for significant reductions (50-80%), many are targeting modest goals (10-20%), with 16% not pursuing reductions at all. This shows a need for greater ambition to meet global emission targets.

Leadership seems to play a key role in driving the adoption of lower-emission materials like concrete as well as the expectations around the pace of market change. 55% of respondents indicated that top management is pushing for lower-emission materials, while 44% pointed to mid-level management, and 22% to employees on the ground. External pressures (41%), including customers (27%), and business partners (14%), also play a role. 45% of the respondents believe that lower-emission concrete will be standard within five years.

Government action is essential: policy and market forces need to be combined to support decarbonisation. Regulatory frameworks like the EU's Renewable Energy Directive II and the US Inflation Reduction Act are mentioned as catalysts for the green transition. However, decarbonisation also requires broader policies such as carbon pricing (50% of respondents), embodied carbon limits (43%), and clean energy policies (34%).

69% of respondents believe tax incentives, credits, and subsidies are essential to create a supportive environment for adopting lower-emission materials. An example is the €4 billion financing of the H2 Green Steel plant in Sweden, backed by a green credit guarantee from the Swedish National Debt Office.

Governments are considering tax reforms to encourage sustainable alternatives by taxing non-renewable materials and offering tax exemptions for renewable energy, helping align environmental and economic goals.

The survey reveals a growing willingness to pay for lower-emission concrete, driven by support from top management, integration into decarbonisation strategies, and expectations of upcoming policies. Around half of respondents (40-57%, depending on CO2 reduction levels) are willing to pay a premium and 45% believe that lower-emission concrete will be standard within five years. However, barriers like cost, industry conservatism, and knowledge gaps hinder widespread adoption. The survey respondents did highlight significant barriers to mass scaling, such as cost, industry conservatism, and lack of knowledge, as well as the need for proactive policy support to accelerate scaling. While progress is underway, cross-sector collaboration and robust policies from all levels of government are crucial for decarbonising concrete by 2050. The call for action is urgent – change must happen now and at a faster pace and on a greater scale.