Higher price – even if lifecycle costs may remain lower – is limiting the growth in the consumer market for many green industrial products.
Even when price is not higher for green products, they are unfamiliar, and lifecycle cost savings are not sufficient to push demand over to sustainable solutions fast enough.
As cities around the world continue to grow, demand for industrial materials like steel, cement and aluminium will increase, threatening to drive up emissions.
More importantly, the solutions chosen in the cities we now build will drive emissions from transportation and from cooling and heating the buildings.
Without specific financing programmes or the policy certainty to encourage development and enhance demand for green solutions and technology, the development and scaling of green innovations may be stunted, threatening our ability to reach climate targets.
Subsidy reform and carbon pricing alone could generate an estimated US$2.8 trillion globally in government revenues per year in 2030 – more than the total GDP of India today. But entire systems around green markets need altered for change to be lasting.
The challenge: How might we stimulate material demand for green industrial products?