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Carbon Credits and the UK Steel Construction Sector

Exploring the commercial and carbon-reduction implications of carbon credit use in the steel construction sector.

Understanding the Challenge

With the target of achieving net zero in 2050 looming, the UK steel construction sector is under substantial pressure as construction emits around 25% of the UK’s total greenhouse gas emissions. This is exacerbated by the goal to deliver 370,000 new homes on average each year and the delivery of infrastructure projects in the pipeline. As a result, ‘carbon credits’ have been introduced to regulate construction’s emission activities. The steel construction sector, in particular, is now purchasing massive credits due to their seemingly carbon-intensive production, incurring additional costs. However, this sector is concerned about the fair allocation and pricing of carbon credits, and whether or not they are forced to do so for emissions they did not create. In the face of recent collapses of several UK steel companies, this small-scale project aims to explore the dynamics of the transactions of carbon credits in this sector in the UK from the perspective of the supply chain and its implications on reducing construction’s carbon footprint. 

 

Our Approach

This project  will combine a literature review, site visits, and a practitioner focus group. First, a review of existing literature on voluntary and compliance carbon markets, including the UK Emissions Trading System, will establish an understanding of how carbon credit systems operate within the UK context.

Second, site visits to industry partners in the steel construction sector will provide practical insights into how carbon credits are currently understood, managed, and applied in construction practice. These visits will help examine real-world mechanisms, costs, and decision-making.

Third, a case study visit to the Strategy Development Centre for Carbon Neutrality at Southeast University specialising in carbon emissions measurement in the Chinese construction industry will inform the project through comparative learning. While the insights gained will be UK-focused, this element will draw on international experience from a highly developed emissions monitoring context.

Finally, a focus group involving academics and construction practitioners will bring together evidence from the literature and case studies to evaluate the financial and practical implications of carbon credit use in UK construction, and to explore more effective approaches to carbon reduction.

 

Dr Jianfeng Zhao

Project Lead

Architecture and Built Environment

Email: jianfeng.zhao@northumbria.ac.uk

 

Project Themes

Resilience and Sustainability

Economy and Society

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