Government Incentives for Low Carbon Construction Materials Are Great, but Not Enough

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In order for the real estate industry to decarbonize more low carbon materials will need to be used, but for that to happen there might need to be more help.

The push to decarbonize the building sector is gaining momentum. While progress on building decarbonization has been notable, a quieter, yet critical piece of the puzzle is the role of construction materials. With incentives aimed at reducing emissions in transportation projects, the focus is shifting to greener building materials like low-carbon concrete and steel. These materials have the potential to significantly lower the construction sector’s carbon footprint, yet challenges remain in scaling their use.

The Biden administration’s push for low-carbon construction materials is starting to take shape with initiatives like the Buy Clean program and federal funding through the Inflation Reduction Act. While these steps are promising, the road to widespread adoption is far from smooth. From high costs to logistical hurdles in supply chains, the transition to greener materials faces several sticking points. Even with federal grants encouraging their use, the demand side needs more support to build a sustainable market for low-carbon alternatives.

Despite these challenges, some developers are already making strides. At Lendlease’s 1 Java Street project in Brooklyn, a blend of innovative, low-carbon concrete and geothermal systems is helping set new benchmarks for sustainable urban development. By replacing traditional Portland cement with recycled glass pozzolan, the project has significantly reduced its embodied carbon emissions while also cutting costs. However, for this kind of success to become more widespread, it will require more than just individual efforts—it will take systemic changes in how the industry approaches materials sourcing and funding.

While the path forward is fraught with challenges, the potential for large-scale change remains. As the demand for low-carbon materials grows, more investment will be needed to bolster manufacturing capacity and expand the availability of these products. Developers, policymakers, and manufacturers must work in tandem to build the infrastructure that can support the widespread adoption of these climate-friendly materials. With the right incentives, this sector could become one of the most impactful drivers of the global decarbonization movement.

Explore the full story on the need for more support of low carbon construction in today’s featured article. This article is free to read for the next 24 hours. Not a subscriber? Get unlimited access to all our exclusive content for just $1 in your first month. Sign up now!

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