Concrete Is One of the World’s Worst Pollutants. Making It Green Is a Booming Business.
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Concrete Is One of the World’s Worst Pollutants. Making It Green Is a Booming Business.

The material accounts for more than 7% of global carbon emissions, according to some estimates

By KONRAD PUTZIER
Wed, Mar 13, 2024 8:45amGrey Clock 3 min

Bill Gates , Jeff Bezos and former Los Angeles Laker Rick Fox are part of a new wave of investors and entrepreneurs looking to make one of the world’s worst pollutants greener.

Concrete accounts for more than 7% of global carbon emissions, according to some estimates. That is roughly the same as the CO undefined produced by all of India and more than double the amount produced by the global aviation industry.

Most of those emissions are caused by cement, the glue that binds together sand and gravel to make the concrete used to build roads, bridges and tall buildings.

Concrete, the second-most-used material in the world after water, is popular because it is cheap, relatively easy to produce, fire-resistant and extremely strong.

“It’s the most democratic material,” said Admir Masic , an associate professor of civil and environmental engineering at the Massachusetts Institute of Technology.

It is also very, very dirty. Cement is made by heating limestone and clay at around 2,700 degrees Fahrenheit in giant kilns and turning them into marble-sized granules called clinker, which are then turned into a powder and mixed with other materials. As it heats up, the limestone releases a lot of CO undefined , and the whole process is often powered by fossil fuels such as coal or gas.

Big cement producers and startups including Brimstone and Partanna, a startup based in the Bahamas and headed by three-time NBA champion Fox, are developing new technologies to produce cement while producing less CO undefined . Breakthrough Energy Ventures, which was founded by Gates and is backed by Bezos, Jack Ma and Michael Bloomberg among others, Fifth Wall and other venture firms have poured tens of millions of dollars into these companies.

These companies are being motivated in part by the federal government, which is dishing out grants and setting aside billions to decarbonise materials such as cement. Local regulators are also encouraging these new technologies. California in 2021 passed a law to cut emissions from cement and New York in 2023 issued rules that limit emissions on concrete used in state-funded construction projects.

Some companies are trying to make cement from different materials that are less polluting. Brimstone said it developed a way to make cement from rocks that contain no carbon. The company said it has raised around $60 million in venture funding to date.

Others are selling substitutes for cement so that concrete mixers need less of it. Eco Material Technologies, for example, harvests coal ash from landfills and volcanic ash from mines and sells it to concrete mixers. These substitutes aren’t new, but the company says it has worked out ways to increase its share in concrete.

“Our goal is to be able to use the last several generations of trash as the next several generations of greener concrete,” said CEO Grant Quasha .

Still others are removing pollutants from the air. The Halifax, Nova Scotia-based startup CarbonCure came up with a process to pump CO undefined into concrete as it is being made and raised $80 million in venture funding this past year.

CarbonCure pumps CO2 into concrete as it is being made. PHOTO: KENT NISHIMURA FOR THE WALL STREET JOURNAL

Partanna, which uses brine from saltwater desalination to make concrete, said homes made from its material suck carbon out of the air.

It is unclear if the greener concrete alternatives will ever catch on broadly. Building codes have rigid rules on what concrete must contain, and many builders don’t like to try out new materials, Masic said.

Cost is another issue. Eco Material’s most environmentally friendly cement alternative, for example, costs around twice as much as standard cement, according to Quasha. CEO Cody Finke said Brimstone’s cement will be as cheap or cheaper than the common sort, but the company has yet to build a factory.

“If I go to the developing world and tell them you’re going to have to pay 20% more for your cement, they won’t do it,” said Eric Toone , a managing partner at Breakthrough Energy Ventures.

Even if some of these new technologies succeed, the startups have yet to prove that they can produce green cement at the vast quantities needed to make a dent in global warming.

Still, Toone said cement makers have no choice but to find cheap ways to cut emissions because ditching the material isn’t an option.

“Cement is sort of this wonder material,” he said. “It’s so cheap, it’s so valuable, it’s so good for what we need that it’s really hard to think of ways around it.”



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This may be contributing to continually rising weekly rents

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There has been a substantial increase in the number of Australians earning high incomes who are renting their homes instead of owning them, and this may be another element contributing to higher market demand and continually rising rents, according to new research.

The portion of households with an annual income of $140,000 per year (in 2021 dollars), went from 8 percent of the private rental market in 1996 to 24 percent in 2021, according to research by the Australian Housing and Urban Research Institute (AHURI). The AHURI study highlights that longer-term declines in the rate of home ownership in Australia are likely the cause of this trend.

The biggest challenge this creates is the flow-on effect on lower-income households because they may face stronger competition for a limited supply of rental stock, and they also have less capacity to cope with rising rents that look likely to keep going up due to the entrenched undersupply.

The 2024 ANZ CoreLogic Housing Affordability Report notes that weekly rents have been rising strongly since the pandemic and are currently re-accelerating. “Nationally, annual rent growth has lifted from a recent low of 8.1 percent year-on-year in October 2023, to 8.6 percent year-on-year in March 2024,” according to the report. “The re-acceleration was particularly evident in house rents, where annual growth bottomed out at 6.8 percent in the year to September, and rose to 8.4 percent in the year to March 2024.”

Rents are also rising in markets that have experienced recent declines. “In Hobart, rent values saw a downturn of -6 percent between March and October 2023. Since bottoming out in October, rents have now moved 5 percent higher to the end of March, and are just 1 percent off the record highs in March 2023. The Canberra rental market was the only other capital city to see a decline in rents in recent years, where rent values fell -3.8 percent between June 2022 and September 2023. Since then, Canberra rents have risen 3.5 percent, and are 1 percent from the record high.”

The Productivity Commission’s review of the National Housing and Homelessness Agreement points out that high-income earners also have more capacity to relocate to cheaper markets when rents rise, which creates more competition for lower-income households competing for homes in those same areas.

ANZ CoreLogic notes that rents in lower-cost markets have risen the most in recent years, so much so that the portion of earnings that lower-income households have to dedicate to rent has reached a record high 54.3 percent. For middle-income households, it’s 32.2 percent and for high-income households, it’s just 22.9 percent. ‘Housing stress’ has long been defined as requiring more than 30 percent of income to put a roof over your head.

While some high-income households may aspire to own their own homes, rising property values have made that a difficult and long process given the years it takes to save a deposit. ANZ CoreLogic data shows it now takes a median 10.1 years in the capital cities and 9.9 years in regional areas to save a 20 percent deposit to buy a property.

It also takes 48.3 percent of income in the cities and 47.1 percent in the regions to cover mortgage repayments at today’s home loan interest rates, which is far greater than the portion of income required to service rents at a median 30.4 percent in cities and 33.3 percent in the regions.

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