Cement and concrete – reimagining procurement practices to reward low-carbon innovation2.1 Cement contributes 6% of global CO2e emissions.78Introduction Cement and concrete provide the foundations of modern infrastructure, but are one of the hardest sectors to decarbonize. Suppliers interviewed for this report consistently returned to one point above all others: bankable, long-dated demand is the gatekeeper to capital. In a commodity business with thin margins and exacting standards, first-of- a-kind (FOAK) projects struggle to attract project finance without credible, durable offtake. Near-zero solutions lack economies of scale and both demand and market awareness are relatively nascent – underscoring the need for demand creation and deployment support.79 Deep decarbonization will likely require a portfolio approach, including clinker substitution (supplementary cementitious materials and novel binders), carbon capture, utilization and storage (CCUS), alternative raw materials and chemistries, fuel switching and efficiency.80 This chapter captures the supplier perspective: innovators and producers at the leading edge of low-carbon cement and concrete who are learning, often painfully, how to move from pilot-scale demonstration projects to commercial- scale production. Offtake as the backbone of scale Across supplier interviews, a key constraint kept resurfacing – no offtake, no debt; no debt, no plant. Startup innovators have very limited access to finance in this capital-intensive, cyclical commodity industry where everything is sold on the spot market. A substantial balance sheet, a long track record and economies of scale really matter here. Cindy McLaughlin, CarbonBuilt Norway’s Longship programme shows how public support can catalyse bankable supply that buyers can contract against. In June 2025, the Norwegian government launched the world’s first full-scale carbon capture and storage (CCS) value chain. It brought Heidelberg Materials’ Brevik capture facility online, which is designed to capture ~400,000 tonnes CO2/year (≈50% of plant emissions) with transport and storage via Northern Lights. This is precisely the type of policy scaffolding that converts nascent intent into financeable volumes – critically, it creates the confidence for longer-tenor offtake that lenders will recognize.81 First-mover decarbonisation projects also need to be economically successful to take off… and that’s why we work closely with governments to create that business case. Winston Beck, Heidelberg Materials Turning Challenge into Opportunity: Supplier Voices from Heavy-Emitting Sectors 30

Turning Challenge into Opportunity 2025