Policy for Material Efficiency: Enabling New Climate Change Mitigation Strategies

Abstract

Material efficiency, the reduction in the production of materials, can reduce GHG emissions and complement other strategies to mitigate climate change. Seven material efficiency strategies for cars and homes in the G7 countries were recently modeled in a study by the International Resource Panel.

The modeling indicated that material efficiency strategies focusing on construction and use of homes could lower the overall cumulative emissions in the G7 between 2016-2060 by 8.5 Gt CO2e (20%), while material efficiency strategies focusing on the production and use of cars could reduce up to 12 Gt (24%) of the G7s cumulative GHG emissions. For both homes and cars, the strategy of more intensive use—where fewer products are required to provide the same basic service—showed the greatest potential.

A review of existing material efficiency policies reveals that attention to material efficiency in climate policy has been limited and policy toward material efficiency has historically focused on waste management rather than GHG reduction. Ex post evaluation of policies that do exist, especially for recycling and related waste management strategies, is uncommon Framing efficient use of materials as a measure primarily intended for climate mitigation is new. Production-related policy opportunities have been neglected because using material efficiency to reduce GHGs is novel in some sectors and because increased material efficiency faces economic and social barriers. Rebound effects where reduction of the cost of housing or transportation can increase material consumption offsetting potential gains, a problem for all efficiency-based approaches, is understudied and not currently addressed through policy.

Keywords: Automobiles, circular economy, climate change, greenhouse gas (GHG), housing, material efficiency,

JEL Classification: Q20, Q30, Q00, Q01, Q28, Q38, Q50, Q53, Q56, Q57, Q58, R29, R48