Open consultation

A policy framework to grow the market for low carbon industrial products: factsheet

Published 23 June 2025

1. What is the government consulting on?

This consultation seeks feedback on technical policy options that, when developed and implemented together, will form a cohesive demand-side policy framework. The proposed key policies prioritised in the initial phase of the framework are:

• an Embodied Emissions Reporting Framework (EERF)
• product classifications
• product level green procurement

2. How could an Embodied Emissions Reporting Framework work?

The embodied emissions reporting framework (EERF) is a core component of the government’s demand-side policy framework. It aims to help producers with measuring, reporting, and verifying the embodied emissions of industrial products, thereby establishing a foundation to remove information failures and support buyers to make informed purchasing decisions.

It proposes guidance on embodied emissions reporting as the first phase of the EERF, while also developing an IT system to simplify and reduce the costs of reporting, ensuring the data is more accessible and easier to compare.

These measures are initially proposed on a voluntary basis, but the government is seeking feedback on the potential to transition to a mandatory approach in the future, subject to further consultation.

3. How could product classifications work?

Product classifications create a structure for differentiating between lower and higher emission products by setting thresholds and bandings for products based on their embodied emissions. These can create ratings (such as A to G) to help buyers compare and understand the climate impact of their product purchases on a ‘like-for-like’ basis. Product classifications can also help clarify what ‘good’ looks like and define what constitutes a ‘low carbon product’.

The government is exploring how to use product classifications as a basis for other demand side policies such as green procurement. This involves assessing models that have been developed by industry and international organisations for the steel, concrete, and cement sectors.

4. How could product level green procurement policies work?

Green procurement is a crucial policy lever to drive market demand for low carbon products as public and private sector organisations buy substantial quantities of steel, cement, and concrete. This spending has the potential to shape the market and if strategically directed could help increase demand for low carbon products, foster innovation, and support the transition to a low carbon economy.

The central role of procurement was recognised at COP26, where the UK and India co-founded the Industrial Deep Decarbonisation Initiative (IDDI). This was followed by the IDDI’s Green Procurement Pledge (GPP), to which the UK committed at COP28 and signalled its intention to meet up to Level 3. Level 3 of the pledge is to require the procurement of low carbon cement, concrete, and steel in public construction projects from 2030.

The government is exploring opportunities to promote product level green procurement, including the potential benefits and challenges of implementation, and the role of existing government policies and industry-led initiatives.

There are already many established green procurement policies, both in the UK and internationally, but many of these are not focussed on product level green procurement. Of those that do, there is a range of approaches which may benefit from greater consistency. The government’s proposals aim to address this issue and help deliver on the UK’s commitment to the Industrial Deep Decarbonisation Initiative’s Green Procurement Pledge.

5. What could be done in future?

The government is considering additional longer-term options to help further develop the market for low carbon products.

This is primarily focused on how to approach the use of product ecolabels that could help communicate information about a product’s low carbon characteristics to interested buyers.

Also under consideration is the possible use of regulations based on emissions intensity, mandatory product standards (MPS), which were also explored in a previous consultation on carbon leakage mitigation policies in 2023.

Finally, the government is considering whether to expand the sectoral scope of demand side policies (for example, to chemicals, ceramics, glass, aluminium, and plastic) as well as whether it should consider any other types of policies as part of the framework.