Catalytic Procurement: How Corporations Can Lead the Green Commodity Transition

RMI has released a report detailing how corporate procurement can serve as a primary lever for scaling nascent markets for low-emissions commodities like green steel, cement, and sustainable fuels. As companies face increasing pressure to meet Scope 3 sustainability targets, leveraging combined purchasing power is essential to overcome high transition costs and ensure project bankability for new technologies. This strategy aims to accelerate the decarbonization of heavy industry and transportation, sectors that are critical to achieving long-term global climate goals.

According to the RMI report, corporate procurement is a critical tool for unlocking differentiated markets for low-emissions commodities, including steel, cement, aviation and maritime fuels, plastics, and fertilizers. These sectors currently face significant hurdles due to high transition costs and the nascent stage of green alternatives. By committing to purchase these products, corporations provide the financial certainty needed to make large-scale decarbonization projects bankable, thereby catalyzing system-wide change across the global energy and manufacturing landscape.

The report highlights that this approach has already proven successful in the renewable energy and sustainable aviation fuel sectors, where corporate buyers were instrumental in driving market maturity. RMI suggests that a similar wave of transformation is now possible for heavy industry and transportation. By utilizing their collective purchasing power, companies can simultaneously address their Scope 3 emissions and build more resilient, sustainable supply chains that are less dependent on carbon-intensive traditional commodities.

Investing in low-emission technologies today is framed as a strategic move that triggers positive feedback loops, ultimately reducing costs and providing a long-term competitive advantage. The report, which received external review from experts at the Center for Green Market Activation, emphasizes that early action is necessary to shape the future of low-emissions markets. By positioning themselves as climate leaders now, corporations can ensure they meet their sustainability commitments while driving the technological innovation required for a zero-carbon future.