Australia’s construction materials sector has welcomed the Federal Government’s new 2035 climate target.
However, it warns that success hinges on procurement reform to create demand for low-carbon products.
Cement Concrete & Aggregates Australia (CCAA) has responded to last week’s announcement of a 62 to 70 per cent emissions reduction target by 2035 and the release of six sector transition plans under the Net Zero Plan.
While acknowledging the ambition, the industry stressed that cutting emissions must not come at the expense of material reliability or project delivery.
“Our sector builds the foundations of the nation’s housing, transport, energy and social infrastructure,” said CCAA Chief Executive Officer Michael Kilgariff.
“Achieving this target will require a carefully managed transition that cuts emissions while keeping materials reliable, affordable and available.”
Kilgariff said the government’s sector plans reflected “many of the areas our industry has been calling for – clearer carbon data, performance-based procurement, more consistent standards, and the infrastructure to support zero-emissions transport fleets.”
However, he argued that procurement is the most powerful lever now available.
“Public and private procurement decisions will make or break Australia’s decarbonisation ambitions,” he said.
“By embedding low-carbon requirements into procurement policies, governments can drive demand for sustainable materials and unlock investment across the construction materials supply chain.
“If major infrastructure projects consistently require lower embodied carbon, industry will respond by accelerating the adoption of new processes and technologies. This will create the business case for large-scale deployment of lower carbon cement, concrete and aggregates.”
According to CCAA, embedding whole-of-life carbon into project decisions and modernising specifications will be critical to ensuring innovation takes hold.
Kilgariff said frameworks that reward low-emissions performance would not only cut carbon but also “boost local manufacturing, create skilled jobs, and strengthen Australia’s sovereign capability in building materials.”
The peak body has also emphasised the need for collaboration with government on access to low-emissions energy and transport, training, and consistent procurement reforms to avoid cost blowouts or disruption to the construction pipeline.
“CCAA and its members are committed to playing our part,” Kilgariff said.
“We are ready to work with government, industry and the community to deliver a practical and balanced pathway to net zero – one that delivers emissions reduction while keeping Australia building.”
The heavy construction materials industry generates more than $15 billion annually and directly employs 30,000 Australians, with a further 80,000 jobs indirectly linked to the sector.
CCAA members produce the majority of the nation’s cement, concrete and aggregates, making the sector’s alignment with national climate targets essential for achieving the government’s net zero ambitions.
