Two key announcements relating to decarbonisation within the heavy industry sector were made in the past week, as the segment grapples with reducing its emissions. The built environment is estimated to account for 42% of global emissions[i], with the embodied carbon of just four building and infrastructure materials – cement, iron, steel, and aluminium – being responsible for 15% of this total.
In a bid to incentivise the procurement of more sustainable building materials the GCCA (Global Cement and Concrete Association) announced on Thursday (24th April) that it would be introducing Low Carbon Ratings (LCRs). Inspired by existing energy performance tools such as the EU’s Energy Performance Certificates and the US Home Energy Rating System, it will offer a ‘simple, transparent, and adaptable’ approach for stakeholders within the construction sector.
It will help customers prioritise sustainability when selecting construction materials, by using a simple AA to G scale to identify cement and concrete products based on their carbon footprints. The score for cement for example is based on kilograms of embodied carbon dioxide equivalent per tonne – KgCO2e/t, as shown below.
Source: GCCA
The rating system is also designed to be used with Environmental Product Declarations (EPDs), which are third party verified.
Thomas Guillot, Chief Executive of the GCCA, said: “Cement and concrete are the foundations of modern life – from the buildings we live and work in, to the roads we travel, and the infrastructure that supports clean water and green energy. As global demand for sustainable construction grows, the need for greater transparency around the carbon footprint of construction materials is more critical than ever.”[ii] He added: “Our Low Carbon Ratings system supports more sustainable procurement practices and will empower the entire value chain to accelerate decarbonisation.”[iii]
In a further development made just a day prior to GCCA’s announcement, (23rd April) the London Metal Exchange (LME) released plans to explore the feasibility of a ‘green metals premium’. This would see price premiums introduced for LME-approved brands that meet the low-carbon footprint requirements of certification bodies. Those metals under consideration to be included are aluminium, copper, nickel and zinc. LME suggests that by making a sustainability price differential public, the value attached to sustainable metals will be transparent and could support the development of the market for sustainable metals. LME has already partnered with digital platform Metalshub to enable consumers to buy LME-grade low-carbon nickel.
Matthew Chamberlain, CEO of LME, said: “Our conversations with stakeholders have shown that there is support for establishing a way to reflect an LME brand’s sustainability in its price. There is a growing sophistication in industry sustainability standards and accreditation programmes that cover broad criteria for different metals markets. Taken together with the disclosure and comparability of these credentials through LMEpassport and our work with Metalshub, these developments provide the opportunity to establish credible sustainability pricing premia for LME-listed metals.”[iv]
[i] Why The Built Environment – Architecture 2030
[ii] World’s first Low Carbon Ratings system for Cement and Concrete launches : GCCA
[iii] Ibid
[iv] LME explores establishing price premia for sustainable metals | London Metal Exchange
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
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