A survey, conducted by Ramboll and The Climate Group, has shown that nearly 50% of businesses are willing to pay more for low-carbon steel
Ramboll and The Climate Group have published a report, titled The Steel and Concrete Transformation: 2024 market outlook on lower emission steel and concrete, showing that just under half of businesses surveyed would pay extra for low-carbon steel.
The survey questioned 250 businesses from 42 countries and 21 industries.
Willingness to decarbonise is growing
The research shows a promising growth of willingness within businesses to decarbonise and purchase low-carbon steel.
45% of respondents to the survey said they would be willing to pay a premium price for a reduction in emissions of 25% or higher for steel. 57% would be willing to pay premium for a reduction of 50% or more.
Compared to last year’s survey, this indicates a rise of 52% of willingness in respondents, and just 34% said their stance had not changed.
The report also looked at barriers to adopting low-carbon steel.
The results indicated that the key barriers are main cost (84%), industry conservatism (37%), and lack of knowledge (33%).
Low-carbon steel is key for net zero
Jen Carson, head of industry of Climate Group, says: “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. Actors across the value chain – suppliers, governments, and investors – should take note.
“But there’s deep work to be done to speed up progress. It’s critical that businesses can make the right choices for their operations, and the planet, and switch to lower emission steel and concrete. Governments must listen to their concerns, support their ambition, and act quickly to remove barriers. This way we can unlock corporate demand to drive real sector transformation.”
Michael Simmelsgaard, chief operating officer of Ramboll, said: “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 – 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 decarbonization of heavy industries on the path to global net zero.”
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