Prologis, Amazon and Meta sign low-carbon concrete pact

Key Points

Concrete manufacturing, and especially cement production, accounts for 8% of global greenhouse gas emissions, according to the World Economic Forum.

Amazon, Meta and Prologis are joining other organizations in founding the Sustainable Concrete Buyers Alliance, led by RMI.

The idea is to use their collective purchasing power for low-carbon concrete, financially supporting sustainable concrete production.

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Concrete manufacturing, and especially cement production, accounts for 8% of global greenhouse gas emissions, according to the World Economic Forum. That’s about the same as the world’s third- or fourth-largest country’s annual output. 

And that’s why large users of concrete, some of the biggest names in real estate, are joining forces to support low-carbon concrete. Amazon,  Meta and Prologis are joining other organizations in founding the Sustainable Concrete Buyers Alliance, or SCoBA. The group is led by nonprofits RMI, previously known as the Rocky Mountain Institute, and the Center for Green Market Activation.

“We’re looking to channel their investments into real off-take agreements that will then enable low-carbon cement and concrete producers to invest in decarbonization projects and ultimately accelerate the market,” said Ben Skinner, a manager on the cement and concrete team at RMI.

The idea is to use their collective purchasing power for low-carbon concrete and thereby financially support sustainable concrete production. It could also help to finance capital-intensive decarbonization projects, which improves market conditions for those low-carbon concrete producers to grow their technologies and their businesses.

“Low-carbon cement and concrete are essential to decarbonizing the built environment, and this alliance will help bring next-generation solutions to scale for the benefit of our customers,” said Keara Fanning, director of net zero and sustainability at Prologis, the world’s largest warehouse REIT, or real estate investment trust.

The problem the organizations are trying to tackle is one of scale. Large cement suppliers who do have net zero commitments operate massive plants, and so making the retrofits needed to decarbonize their product is extremely expensive. They need to see legitimate demand in the marketplace before they’re willing to make the investment.