Materials are central to our economies – but their production also dominates industrial greenhouse gas emissions. It is therefore not possible for Europe to reach an 80-95% emission reduction target without significant emission reductions from the materials sector. While some production efficiency improvements and fuel shifting to lower carbon inputs have been achieved in sectors such as steel and cement, they amount to only modest reductions and their full potential is limited. The large, and necessary, mitigation potential linked to break-through process technologies, new materials, and more efficient material use remains largely untapped. The discrepancy between the policy objective of near complete decarbonization of the economy and only incremental developments in the sector creates uncertainty, thus inhibiting investments and innovation. With this workshop we aim to explore what elements need to be put in place at the European and Member State level to allow for large scale emission reductions from material production through developing a portfolio of innovative processes and materials and providing incentives for their efficient use.
Opening comments: Karsten Neuhoff (DIW Berlin)
Session 1: Technological options for emissions reductions and their economics
In this session, we will explore options of product innovations, process innovations, and more efficient use of materials for the major materials (cement, steel, aluminium and chemicals).
Chair: Heleen de Coninck (Radboud University)
Presentation 1: Tobias Fleiter (ISI Fraunhofer)
A transition pathway for Germany’s industry up until 2050 - Results form a bottom-up modeling study
Presentation 2. Tatiana Vakhitova (Granta Design)
Material substitution for decarbonization
Session 2: Frameworks for adoption of new technologies in practice
In this session, we will discuss policy frameworks that can support the adoption of new technologies in a world of (regulatory) uncertainty once they have reached maturity. In the discussion policy options, such as public procurement, project based carbon price guarantees, and mechanisms to ensure effective carbon pricing like inclusion of consumption, but also new business models for financing shall be explored as well as evaluated.
Chair: Henry Derwent (Climate Strategies)
Presentation1: Richard Baron (OECD)
Role of public procurement for low-carbon innovation
Presentation2: Roland Ismer (University Erlangen)
Inclusion of Consumption of carbon intensive materials in emission trading systems. An option for carbon pricing post 2020
Presentation3: Maciej Bukowski (WiseEuropa)
The “prime minister perspective” to environmental policy
Presentation4: Jörn Richstein (DIW Berlin)
Project-based carbon contracts: a sketch
Session 3: Innovation support in practice
In this session, the speakers will present policy options supporting climate friendly materials innovation, as well as challenges for their success (e.g. ensuring technology competition, time inconsistency of carbon regulation, avoiding regulatory capture). The discussion/session will in particular focus on options to structure the funding requirements for increasing the scale of demonstration projects for new processes and materials. This may involve national, regional and European programs based on for example national budgets, EU ETS allowance auctions or inclusion of consumption charge and different mechanisms for their disbursement.
Chair: Lars Zetterberg (IVL)
Presentation1: Craig Hart (Renmin University of China)
Radical Resign of Products and Processes for Sustainability
Presentation2: Olga Chiappinelli (DIW Berlin)
Valley of Death, Technology Pork Barrel, and support for large demonstration projects
Concluding comments: What is needed for a consistent picture across technology pathways, technology innovation and adaptation policies?