Source · Select Committees · Environmental Audit Committee
Recommendation 49
49
Accepted
Consult by April 2026 on financial incentives for lower embodied carbon products and manufacturing.
Recommendation
The Government could also consider other financial incentives in product areas where the cost differential makes adoption of lower embodied carbon products unattractive and support for manufacturing set up of lower embodied carbon products. We recommend that the Government consult, by April 2026, on what further incentives could shift the dial in this area. (Recommendation, Paragraph 160)
Government Response Summary
The government states it is already exploring financial mechanisms such as the Advance Market Commitment pilot for low carbon concrete.
Government Response
Accepted
HM Government
Accepted
91. The Government is already exploring innovative financial mechanisms to accelerate adoption of lower embodied carbon products. For example, we are co-sponsoring an Advance Market Commitment (AMC) to pilot for low carbon concrete, delivered by Innovate UK and Carbon Limiting Technologies. 92. This pilot, running since 2023, creates a guaranteed future market by securing public commitments from developers to purchase specified quantities of low carbon concrete, provided it meets technical standards and price ceilings. 93. By aggregating these commitments into a significant demand signal, the AMC programme aims to give suppliers and investors confidence to develop and scale up new technologies. Insights from this pilot will inform consideration of further incentives as part of future consultations. 94. This work on AMCs complements the Government’s ongoing work on the policy framework to grow the market for low carbon industrial products and in particular product-level green procurement, described in the response to recommendation 30.