Highlight
- Financial incentives for innovation and adoption of green concrete could accelerate industry-wide change. As the industry is risk averse, reducing the financial cost associated with a green switchover can push companies to adopt these technologies. Incentives have spurred innovation and adoption of other clean technologies, such as rooftop solar in California.
Opportunity
- Several tax incentives already exist in the federal tax code which may be used by green concrete firms. Section 45Q, which was extended to cover projects beginning construction by 2033 by the IRA, allows for a tax credit of up to $85-180 per ton of CO2 captured and stored or used.62 For green cement plants which will be producing significant quantities of cement (and thus capturing and utilizing hundreds of thousands of tons of CO2), this could provide a significant financial boon and make them more economically viable. Section 48C is a competitive tax credit program which is targeted to provide tax credits to firms planning to undertake projects to reduce emissions from industrial processes or utilize carbon capture technology. There is a specific priority for projects which could promote commercial viability and widespread adoption of such technologies63 – with green cement potentially being at the forefront of these goals. These federal incentives such as §45Q and §48C could still be augmented with state tax incentives and subsidies to decarbonize the industry more rapidly.
62 Section 45Q credit for carbon oxide sequestration – policies. International Energy Agency. (2023, April 14). https://www.iea.org/policies/4986-section-45q-credit-for-carbon-oxide-sequestration
63 Gardner, R. (2023, June 2). Doe clarifies priority projects and selection criteria in new guidance for the 48C(e) advanced energy project credit. JD Supra. https://www.jdsupra.com/legalnews/doe-clarifies-priority-projects-and-6256577/