Advance Market Commitment Policy Brief

Investment Rating - The report does not explicitly provide an investment rating for the concrete industry but emphasizes the need for innovative policy mechanisms like advance market commitments (AMCs) to drive decarbonization efforts in the sector [5][10]. Core Insights - The concrete industry, particularly cement production, is a significant contributor to global carbon emissions, accounting for nearly 7% of all anthropogenic CO2 emissions [1][2]. - Decarbonizing the concrete sector is essential for meeting climate targets, and innovative policies such as AMCs are necessary to commercialize new technologies [5][10]. - AMCs can help transition technologies from research and development to commercialization by guaranteeing demand for low-carbon products [6][10]. Summary by Sections Introduction - Cement production is a major source of greenhouse gas emissions, and innovative policies are required to address the unavoidable emissions from the cement-making process [1][4]. Advance Market Commitments (AMCs) - AMCs are binding contracts that ensure demand for yet-to-be-developed technologies, facilitating financing for early-stage producers [6][7]. - Successful examples of AMCs in other sectors, such as vaccines, demonstrate their potential in the concrete industry [7][10]. Public Sector AMCs - Public procurement can leverage AMCs to incentivize the adoption of low-carbon materials, as governments spend billions on concrete [10][12]. - Twelve states have committed to prioritizing lower-carbon infrastructure materials, indicating a growing trend towards green public procurement [12][10]. Decarbonization Technologies - A variety of technologies are available to decarbonize cement and concrete, including alternative feedstocks, production processes, clinker substitution, and carbon capture [13][15]. - The report identifies at least five promising technologies suitable for AMCs, emphasizing the need for a suite of solutions rather than a single approach [13][15]. Implementation Framework - A five-year framework is proposed to establish AMCs in the public sector, focusing on building consumer confidence, educating stakeholders, and defining evaluation criteria [19][20]. - The framework includes strategies for addressing implementation barriers and unlocking innovation through technology prize programs [19][60]. Organizing Demand - Developing a buyers' coalition is essential to aggregate demand for low-carbon concrete products, which can signal to producers the need for investment in low-emission technologies [66][70]. - Successful examples of demand aggregation in other sectors, such as aviation fuel, highlight the potential for similar initiatives in the concrete industry [70][66]. Conclusion - The report calls for collaboration among industry stakeholders to implement AMCs for low-carbon concrete, emphasizing the need for critical actions to overcome existing barriers [71][73].