Setting procurement targets for sustainable and net zero emissions materials in construction would be an effective method for governments to reduce emissions and ensure broad sustainability outcomes. The potential for emissions reductions are large. Producing steel and cement generates 15% of all global carbon dioxide emissions.100
At sufficient scale, government procurement decisions can encourage investment to meet the upfront costs of switching to the production of low-emission, recycled and remanufactured materials. Procurement targets give manufacturers and importers certainty around their market and potential return on investment.
When setting procurement targets for materials, it is critical to consider cost-competitiveness with existing production.101 Procurement targets should not introduce uncertainty. To ensure this, governments need to work with industry and monitor global research, learning and trends.
Electrifying a portion of government fleets would kick-start the Australian electric vehicle market. By demonstrating demand, manufacturers are likely to provide a wider range of electric vehicles to suit a variety of consumer needs. Government procurement and fleet replenishment would also create an attractive secondary electric vehicle market for a broad range of consumers.102 Where appropriate (such as for standard passenger vehicles), fleets should target 100% zero emission vehicles within five years. For each fossil-fuel powered vehicle bought by a government agency, the purchaser should have to Justify why a zero emission vehicle was not a better option.