44 SEPTEMBER 2024 | THE FOREIGN SERVICE JOURNAL of emissions by 2050, driven by a significant increase in global demand estimated at 80 percent for aluminum, 40 percent for cement and concrete, and 30 percent for steel. While sea freight is predicted to triple, trucking is expected to double by mid-century. Stimulation of demand is essential to bring about a systemic change across these sectors and accelerate the pace of the transition to low-carbon solutions. FMC works to create the demand signal needed for technologies to go through the pilot-scale demonstration phase and accelerate the timelines to reach the first go-to-market projects on the path to large-scale commercialization beyond 2030. Former U.S. Special Presidential Envoy for Climate John Kerry became co-chair of the coalition and continues to drive this initiative forward, rallying top companies with high climate ambition and a willingness to harness their purchasing power to decarbonize heavy-emitting industries. FMC and similar coalitions and initiatives that stimulate market demand, accelerate low-carbon technology deployment, and help facilitate bankable offtake agreements are vital to reducing and eliminating the green premium as well as to jump-starting the market for near-zero emissions products and services to achieve the Paris Agreement’s emissions reduction targets. Taking Stock of First Movers in Action Since its launch two years ago, and through the dedicated work of its 100 member companies that have made more than 120 commitments under FMC, the coalition has become the largest private-sector-led global demand signal for products and services made with innovative near-zero emissions technologies and energy solutions. Members make purchasing commitments applicable to a minimum percentage of their existing spend on products and services in one or more FMC sectors by 2030 (e.g., 10 percent of the company’s steel procured or 10 percent of the volume of goods shipped overseas). These procurement figures can be small for a company but represent a substantial demand when aggregating all member commitments. It is estimated that the FMC now represents about $16 billion in aggregate annual demand by 2030, equating to 31 million tons of annual CO2 equivalent emissions reductions once these purchasing commitments are met. FMC has evolved from a purely demand signaling initiative to also support members’ procurement efforts across all seven sectors. The coalition convenes players involved in the full life cycle of a product such as, say, low-carbon aluminum or steel to foster collaboration and action on breakthrough technologies. FMC convenes regional workshops, bringing together experts to discuss scaling up the supply of near-zero emission solutions, identify the challenges and barriers to increasing both demand and supply, and develop concrete recommendations for a way forward. To catalyze the emergence and commercialization of near-zero emissions innovations, the coalition launched two challenges—one on aviation in collaboration with UpLink, the World Economic Forum’s innovation platform, and one on steel in partnership with the Rocky Mountain Institute (RMI), ResponsibleSteel, and Greenhouse. And in January 2024, the First Suppliers Hub was launched as an online database where current and future suppliers of FMC-compliant technologies can present their products and connect with buyers. The value of collaboration has been evident in the past two years. FMC has played an important role in connecting players and creating unconventional partnerships between value chain actors (i.e., those involved in the full life cycle of a product) and other industry sectors to bridge the gaps between demand, supply, and essential ecosystem enablers such as policy, finance, and infrastructure. This has resulted in an increasing number of offtake agreements and investments with suppliers, translating purchasing commitments into action and bringing breakthrough technologies one step closer to commercial scale. For instance, in January 2024, FMC member Ball Corporation announced a collaboration with fellow coalition member Novelis to launch its first-ever low-carbon aluminum cup, made of 90 percent recycled aluminum supplied by Novelis and 10 percent FMC-compliant low-carbon primary aluminum, supplied by Alcoa from the ElysisTM process—an R&D technology that eliminates direct greenhouse gas emissions from the aluminum smelting process. In the aviation sector, where there is already strong demand for sustainable aviation fuels (SAF), public-private partnerships between governments, airlines, fuel suppliers, and investors are needed to expedite its deployment and deliver net-zero aviation. One example of full value chain collaboration that stands out is the Minnesota SAF Hub, where multiple coalition members from different sectors collaborate with the state government and airport to find solutions to scale SAF global production and replace conventional jet fuel. In shipping, Amazon, a founding member of the FMC, has been instrumental in getting the Zero Emission Maritime Buyers Alliance (ZEMBA) off the ground. Through ZEMBA, cargo owners can demonstrate demand through forward-procurement of zeroemission maritime freight services. Amazon is supporting joint
RkJQdWJsaXNoZXIy ODIyMDU=