Steel and cement are essential to the global economy, generating nearly USD 3 trillion annually, yet they account for around 16% of global CO₂ emissions. Decarbonising these sectors is therefore critical to any credible net-zero pathway.

Emerging technologies, such as hydrogen-based steelmaking, clinker substitution, and carbon capture, exist, but commercial uptake is still very limited. Structural barriers, including unpriced externalities, fragmented supply chains, and procurement practices that favour lowest-cost bids, maintain a high green premium and deter investment.

This report, commissioned by Amazon, examines the market features constraining low-carbon materials and explores demand-side levers, including green public procurement, product standards, buyer alliances, carbon contracts for difference, and de-risking instruments, that can accelerate uptake.

We also assess the role of Environmental Attribute Certificates (EACs), which allow buyers to source low-carbon materials even when production is distant or limited. Properly designed, EACs can help aggregate demand, support pioneering producers, and reduce transaction costs, acting as a practical interim solution.

The report shows how these tools can unlock demand, lower the green premium, and help scale low-carbon steel and cement in Europe’s transition to a sustainable industrial base.