• The First Movers Coalition held a workshop in the US in July on industrial decarbonisation, focusing on cement & concrete, steel, and trucking.
• The workshop participants discussed how to leverage recent U.S. government incentives to secure bankable offtake agreements. 
• Discussions in sector-specific breakout groups revealed strategies for overcoming market and financial barriers to scale near-zero technologies.

The First Movers Coalition (FMC) held a pivotal two-day workshop at the Willard InterContinental, focusing on the decarbonisation of the cement & concrete, steel, and trucking sectors. The U.S. In-Country Workshop brought together key stakeholders from government, industry, finance, academia and wider sector experts to discuss strategies for scaling near-zero technologies in these hard-to-abate sectors. 

Opening remarks from David Crane, Under Secretary for Infrastructure at the U.S. Department of Energy, highlighted the recent legislative actions and incentives aimed at fostering an enabling environment for near-zero technologies. "The Bipartisan Infrastructure Law and the Inflation Reduction Act have set the stage for significant advancements in decarbonisation," said Crane. "Now, it's up to the private sector, buyers as well as producers, to capitalize on these opportunities by agreeing to bankable offtake agreements for near-zero products." 

In the cement and concrete sector, participants acknowledged that the primary challenge for near-zero emissions offtake lies in market dynamics rather than technology. There was broad consensus on exploring a book & claim system to decouple green attributes from physical products, potentially expanding the market to match the willingness to pay with near-zero supply. This follows the clues from how successes in the Renewable Energy and Carbon Credit Market, with clients who want to encourage investment, but may not have the site area or means to fully invest in onsite facilities still being able to support decarbonisation. Key design principles, risk mitigation, integration with existing certification schemes and a stakeholder-informed roadmap were identified as crucial elements for success. "By decoupling green attributes from physical products, we can significantly enhance market reach and demand for sustainable cement and concrete products,” noted Arathi Gowda, Principal at ZGF Architects. 

The steel sector discussions centered on addressing the green premium and investment risk. Attendees highlighted that although there is demand for near-zero emissions steel, the necessity of sharing these burdens across the value chain and moving quickly despite uncertainties in regulations and standards. Success stories, such as those from H2 Green Steel, were used to illustrate the potential of near-zero emissions steel in the U.S. Heather Krajewski, Head of Forgings and Fossil-Free Materials Purchasing at Volvo Group, noted, "We need to leverage storytelling to showcase successful transitions and make a compelling case for near-zero steel.” 

The discussion on trucking focused on enabling the uptake of zero-emission Medium- and heavy-duty (MHD) vehicles and services. By 2030, nearly half of the 160+ models are expected to be more cost-effective than diesel vehicles. However, less than 0.1% of US truck sales are zero-emission due to market skepticism and high initial costs. Commitments to purchase zero-emission technologies and cross-sector collaboration were deemed crucial to incentivise manufacturers, build confidence, and lower costs. Henry Collard from Cemex's Global Fleet Management highlighted that "effective pathways to reducing emissions involve cross-sector collaboration with OEMs to improve new technologies, engagement with multilateral institutions, and coordination across the entire supply chain to support infrastructure deployment, share risks, and make additional investments profitable." 

The second day of the workshop honed in on finance and offtake mechanisms, with presentations and panels exploring the critical role of financial institutions in supporting decarbonisation efforts. Leslie Biddle, Deputy Under Secretary for Commercialization and Finance at the U.S. Department of Energy, outlined the importance of innovative financing models and long-term offtake agreements to de-risk investments. "Securing offtake agreements is pivotal for attracting the necessary capital to scale near-zero technologies." 

The workshop concluded with a call to action for securing long-term offtake agreements by COP29. Participants committed to continued collaboration and strategic partnerships to overcome market and financial barriers.  

The FMC U.S. In-Country Workshop has set a robust foundation for future collaboration and innovation in industry decarbonisation, underscoring the urgent need for collective action and strategic investment in near-zero technologies.