A robust system of carbon monetization with a portion paid upfront can get a company some of the additional capital it needs to make necessary investments in infrastructure. Furthermore, long-term forward carbon offtake commitments can help mimic contracted revenue for the material, which might help some lenders get comfortable enough to provide project finance. Cindy McLaughlin, CarbonBuilt Monetizing carbon Suppliers increasingly frame environmental attribute certificates (EACs) and carbon credit structures as revenue instruments, not just marketing tools. Properly structured, these can offer pre-paid, contract-backed income that will support financing. In 2024-25, Microsoft and partners published science-based criteria for high-quality EACs in low- carbon concrete and steel intended to be verifiable, additional and catalytic. Such standards matter because they support lender diligence and mitigate fears of double counting.84 Carbon monetization and upfront capital can turn early demand intent into tangible, financeable cashflow. It can unlock buyers beyond traditional local markets, including customers who may not be physically close to low-carbon suppliers’ production facilities. Furthermore, it can bring in buyers who are willing to pay a premium for low-carbon products. This is clearly aligned with lenders’ appetites for contracted revenue streams, making the financing process easier. Policy certainty and public procurement to spur demand Europe is seen as an attractive market for the suppliers interviewed for this report, for a number of reasons: –Carbon pricing through the EU ETS and the CBAM can create a clear market floor for low- carbon materials.85,86 –Public procurement rules increasingly reward EPD (Environmental Product Declaration)-verified low-GWP (Global Warming Potential) mixes. –Suppliers interviewed indicated that permitting and approvals are predictable and streamlined for near-zero materials. In Europe the sector is well-funded, but funding is overwhelmingly skewed towards CCS/CCU at incumbent plants, with far less capital flowing to alternative binders and processes, such as calcined clay, novel chemistries or electrified routes.87,88 The cement sector [in Europe] is extremely well-funded… the problem is you’re not seeing the same level of commitment go to the alternative technologies. Susan McGarry, Ecocem In the US, the federal energy policy landscape is shifting, with federal policies which had been supportive rolled back in 2025.89,90,91 At the state level, several public policies are providing support: –Colorado’s Buy Clean Colorado Act now enforces environmental production declaration (EPD)-based maximum global warming potential (GWP) limits for cement and concrete on Colorado Department of Transportation (CDOT) projects. These limits, effective from January 2025, operationalize disclosure into hard thresholds. –New York State’s Low Embodied Carbon Concrete Leadership Act (LECCLA) requires state entities to procure low-carbon concrete for state projects, resulting in the Office of General Services (OGS) Buy Clean Concrete Guidelines, which establish EPD reporting and emissions standards with bid preferences for compliant mixes. –California’s Department of Transportation (Caltrans) requires EPDs for concrete and asphalt and is standing up advance procurement tools to lock in low-carbon cement and concrete supply.92,93,94 These state rules have the potential to translate ambition into measurable procurement criteria for companies in this sector looking to decarbonize. Despite this progress at state level, companies interviewed describe a harder path from pilot to plant in the US, with grant uncertainty and sparse offtakes outside a handful of hyperscalers. Turning Challenge into Opportunity: Supplier Voices from Heavy-Emitting Sectors 32

Turning Challenge into Opportunity 2025