First Movers Coalition: over 95 members send world's largest clean demand signal for emerging climate technologies

In the 2 years since its inception, the First Movers Coalition (FMC) has become the world's largest private sector demand signal for emerging climate technologies. Today, members are moving from commitment to action: signing offtake agreements, driving demand for low carbon products to global decarbonization initiatives, and collaborating with global partners to advance emerging climate technologies.

The FMC was launched at COP26, as a partnership between the World Economic Forum and US Special Presidential Envoy for Climate John Kerry to help decarbonize the world’s heavy-emitting sectors via private sector demand for decarbonization technology. From 35 members at its inception, this coalition has grown to 96 members, who have collectively made 120 commitments. By 2030, these commitments will represent an annual demand of $16 billion for emerging climate technologies, and 31 million tonnes (Mt) CO2e in annual emissions reductions.

Members have made significant progress on commitments, delivering direct investment in climate technologies and tangible offtakes. As of COP28, coalition members have signed 94 offtake agreements to buy emerging climate technologies from qualified suppliers.

Highlights include Volvo, a founding member of the FMC, striking a deal with Holcim for the largest commercial order of heavy-duty battery electric trucks. By 2030, Holcim, the world’s largest building solutions provider, will put 1,000 of Volvo’s zero-emission trucks to work across their operations, replacing 1,000 diesel trucks.

In the carbon dioxide removal (CDR) sector Microsoft signed an offtake agreement with Ørsted to purchase around 2.7 million tonnes of durable CDR credits over 11 years, representing one of the largest CDR offtake deals by volume to date.

In shipping, FMC members Yara Clean Ammonia and Höegh Autoliners have agreed on a future supply deal for clean ammonia for Höegh’s new car carrier vessels. The twelve vessels are equipped to operate on zero carbon ammonia and methanol and will be some of the most environmentally friendly car carriers ever built.

Meanwhile, Amazon, also a founding member of FMC, co-launched a request for proposal to ship 600,000 TEUs (twenty foot equivalent units) on zero emission vessels over 3 years – which will result in approximately 1 million metric tonnes of carbon emissions reduction.

And in the aviation sector, in August of 2023, FMC members Delta, Bank of America and Ecolab joined forces with Xcel Energy and Greater MSP to establish the Minnesota SAF Hub, the first large-scale sustainable aviation fuel hub in the U.S. with collaboration among players across the value chain committed to scaling Sustainable Aviation Fuel (SAF) production. SAF is the most promising lever known today to decarbonize aviation, and lifecycle greenhouse gas emissions from SAF can be up to 80% lower than traditional jet fuel.

All of the 94 deals across FMC’s target sectors generate direct investment into emerging climate technologies, advancing their path to commercialization and accelerating the decarbonization of the heavy-emitting sectors.

The FMC focuses on decarbonizing the world’s heavy-emitting sectors – steel, aluminum, cement, shipping, aviation, and trucking – where decarbonization is critical.

It is estimated that 50% of the reductions needed for net-zero emissions by 2050 must come from technologies not yet available at scale – technologies like hydrogen to produce low-emission steel, sustainable aviation fuel, or carbon capture and storage technologies that capture residual emissions.

By joining FMC and committing to purchase innovative emerging climate technologies, members send a powerful signal to green suppliers, attract qualified supply and are able to make green purchases and investments that achieve corporate commitments. Simultaneously, members leverage their collective purchasing power to create early markets for the emerging climate technologies that will be essential in the race to decarbonization. As more and more investment flows into these technologies and producers accelerate supply to meet corporate demand, today’s climate solutions will see the same technological breakthroughs and cost reductions that yesterday’s innovations saw – like solar which is now cost competitive.

In addition to working with corporate members, FMC also engages 13 governments – Australia, Canada, Denmark, Germany, India, Italy, Japan, Norway, Singapore, Sweden, the United Arab Emirates, the United Kingdom, and the United States – which together account for over 50% of global GDP.

The Intergovernmental Panel on Climate Change (IPCC) has confirmed that the world is not reacting fast enough to the climate crisis and is on course to breach the critical barrier of 1.5°C warming within the next two decades. This sets us on a path to cascading climate tipping points, from the melting of carbon-rich permafrost in the poles to the loss of almost all mountain glaciers – with up to 10 tipping points triggered below 2°C warming.

With 50% of the emissions reductions needed for net zero emissions by 2050 set to come from technologies not yet available at scale – this critical climate target of 1.5ºC can only be reached if new decarbonizing technologies are developed and scaled at speed.

The First Movers Coalition helps spotlight member companies public commitments to purchase emerging climate technologies, connects members to qualified supply, and actively facilitates critical collaboration and an enabling ecosystem for members to achieve commitments.

If your company is a climate leader in one of FMC’s target sectors – steel, cement and concrete, aluminum, aviation, trucking, and shipping - we encourage you to work with us.