Innovation and use policies required to realize investment and emission reductions in the materials sector

Basic materials such as steel, cement or aluminium are important inputs to our economies. However their production is responsible for the dominant share of industrial emissions and 16% of European greenhouse gas emissions (GHGs). This report illustrates the portfolio of options available to reduce these emissions with climate friendly production, efficient material use and re-use, and lower-carbon materials. With this portfolio, Europe’s 80-95% emission reduction targets for 2050 and climate neutrality as agreed in the Paris Agreement can be achieved in the materials sector. The report outlines policy developments that can allow all actors in Europe to benefit from climate friendly choices on producing, using, and re-using basic materials. This requires a consistent policy framework of effective policies for innovation and for use of climate friendly options. Both are closely interlinked: Firms will, for example, only co-invest in innovation,if the investment framework makes large scale applications commercially viable.