Over $16bn: First Movers Coalition sends world's largest demand signal for emerging decarbonization technologies

The global goal to reach net-zero greenhouse gas (GHG) emissions by 2050 is critically dependent on the transformation of heavy-emitting sectors such as long-haul transportation (aviation, shipping, trucking) and industrial materials (aluminium, cement and concrete, steel) that account for roughly 25% of annual global GHG emissions; without interventions, this share could grow to 50% by 2050.

Half the emissions reductions needed to achieve net zero are expected to come from technologies not yet available at scale. Building early market demand for such technologies by 2030 is therefore critical to help scale-up and catalyse their mainstream adoption for carbon-intensive sectors.

The FMC was launched at COP26 as a partnership between the World Economic Forum and US Special Presidential Envoy for Climate John Kerry. The goal is to help decarbonize the world’s heavy-emitting sectors via private sector demand for breakthrough decarbonization technologies. From 35 members at its inception, this coalition has tripled its membership to over 100 members who have collectively made 125 purchasing commitments across the heavy-emitting sectors that FMC focuses on. By 2030, these commitments will represent an annual demand of more than $16 billion for near zero emission products and services and over 30 million tonnes (Mt) CO2e in annual emissions reductions.

By joining FMC and committing to purchase innovative emerging climate technologies by 2030, 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 realize the same technological breakthroughs and cost reductions as previous advances – like solar, which is now cost competitive.

The next step therefore is for FMC members to transform their 2030 purchasing commitments into concrete deals. This is already becoming a reality - FMC members are increasingly engaging in joint ventures, investments, MoUs with value chain partners and offtake contracts with qualified suppliers in support of their commitments. An encouraging data point is that over the past three years, members have engaged in around 100 offtake agreements and investments across FMC’s seven sectors.

For example, Volvo has entered into a deal with Holcim to supply the largest ever 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, a landmark deal will see Ørsted sell a further one million tonnes of carbon removal over a ten-year period to Microsoft from Avedøre Power Station, which is part of the bioenergy carbon capture and storage project ‘Ørsted Kalundborg CO2 Hub’. This new agreement builds on an existing commitment by Microsoft to buy 2.67 million tonnes from Asnæs Power Station, bringing the total purchase under contract to 3.67 million tonnes of CO2.

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.

In cement and concrete, FMC member Vattenfall signed a letter of intent with CemVision to work towards the development and future supply of highly decarbonised cement, with CemVision aiming for a 95% decarbonised product by 2030.

In the steel sector, Ørsted secured first access to lower-emission heavy plate steel through an MoU with Dillinger. Under a large-scale supply-agreement entered into in 2022, Ørsted will procure significant volumes of regular heavy plate steel from 2024, giving the company access at scale to and visibility of the most crucial raw materials in offshore wind while providing Dillinger with the needed support to accelerate investments in new lower-emission steel production. Ørsted expects to be able to procure lower-emission steel produced at Dillinger’s plant in Dillingen, Germany, from 2027-2028.

In the aluminium sector, FMC members Ball Corporation and Novelis joined forces with Alcoa to unveil an innovative aluminium cup, revealing the paramount importance of collaborative efforts in decarbonizing the aluminium supply chain. In the production of the final product, the partners used 90% recycled aluminium sourced from Novelis, supplemented by 10% primary aluminium produced with the use of the breakthrough ELYSIS technology that leverages carbon-free smelting technology – a joint venture between Alcoa and Rio Tinto.

And in the aviation sector, in 2023, FMC members Delta, Bank of America and Ecolab joined forces with Xcel Energy and Greater MSP to establish the Minnesota SAF Hub. This is the first large scale sustainable aviation fuel (SAF) hub in the U.S., which in November 2024 announced the development of a new $5 billion SAF manufacturing facility in Minnesota. SAF is one of the most promising levers known today to decarbonize aviation, with lifecycle greenhouse gas emissions that can be up to 80% lower than traditional jet fuel.

FMC aspires to be not only the place where members make their public commitments, but also where they can find the tools and partners they need to make good on those commitments by investing in near zero emission products and services.

One such measure to help surface suppliers of decarbonisation technologies and demonstrate their feasibility is the First Suppliers Hub, established by FMC in January 2024. The First Suppliers Hub is a global online repository where companies can find developers and suppliers of decarbonisation technologies, thereby serving as a critical resource for connecting FMC members, governments, and financiers with suppliers that meet or plan to meet the decarbonization thresholds set by the FMC commitments. Since its launch, the platform has grown to include over 190 products and projects from more than 120 suppliers. The First Suppliers Hub provides relevant information that reduces research efforts in the procurement process, allowing users to identify and connect with suppliers directly for offtake agreements, partnerships, financing, and more.

The first deal involving an FMC member and a First Suppliers Hub supplier was seen in last year’s Letter of Intent signed between Vattenfall and Cemvision for the supply of highly decarbonised cement. Additionally, the platform has surfaced insights about the current and future availability of supply, which has influenced actions taken by FMC and its members.

The First Movers Coalition helps spotlight member companies' public commitments to purchase emerging climate technologies, surfaces qualified supply to help members make good on their commitments, 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, as well as carbon dioxide reduction technology (CDR) - we encourage you to work with us.