| Summary: | The global construction industry is the world's largest consumer of raw materials, and constructed objects account for between 25 and 40 percent of total carbon emissions in the world. The industry is projected to grow at 4.2 percent annually between 2018 and 2023 in terms of market value, with expansion opportunities in residential, nonresidential, and infrastructure projects. In parallel, the Paris Agreement and its well-below-2 degrees Celsius target for global temperature increase has signaled an imperative toward decarbonization in the public and private sectors, including creating the impetus for a sustainable construction industry. With increasing populations, urbanization, and the fact that almost 75 percent of the infrastructure that will exist in 2050 has yet to be built, the construction industry is expected only to expand, thus providing a significant opportunity to improve its efficiency and transition toward a low-carbon future. This paper provides a framework for considering the construction value chain and explores existing attitudes and initiatives toward carbon pricing along it, with the objective of enabling companies to identify possible synergies and align their approaches to sustainability. Twelve of the Carbon Pricing Leadership Coalition's (CPLC) partner companies representing sectors across the construction value chain, including aluminum, cement, glass, infrastructure, equipment manufacturing, construction services, and steel were interviewed to understand their motivations and experiences as they attempt to implement carbon pricing and transition toward low-carbon construction. Finally, the CPLC provides a forum for private companies to engage with governments to ensure the development of well-designed carbon pricing policies to help create a level playing field
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