Carbon limits in end products

Current status of implementation and existing gaps

The concept of carbon limits in end-products does not necessarily apply to heavy-duty trucks. However, it can apply to the procurement of raw material and fuels that are used to produce these vehicles.

Examples and initiatives

Please refer to examples listed in the “iron and steel” and “chemicals and petrochemicals” tables.

Current status of implementation and existing gaps

Carbon limits for end products in the shipping sector can be defined as the emission thresholds for the fuels used, compared with fossil fuel benchmarks, or as the minimum energy efficiency requirements for vessels, including the emission intensity of fuels as well as energy and operational measures. Both tools can be useful in setting clear goals for the sector.

Examples and initiatives

The IMO has established energy efficiency indexes that require emission reductions for both newly built and existing ships. The IMO’s initiative is expected to be complemented by a “basket of measures”, including a marine fuel standard (IMO, 2023).

The EU Renewable Energy Directive sets the emissions threshold for RFNBOs and recycled carbon fuels at 28.2 gCO₂eq/MJ.

Current status of implementation and existing gaps

Fixing binding targets or quotas on the aviation sector that require a specified level of uptake of SAF can accelerate the creation of initial markets.

Examples and initiatives

Refuel EU Aviation mandates a minimum supply of SAF, as well as other measures related to energy savings, fuel infrastructure and the promotion of green flights, which send effective signals to markets (European Council, 2023).

Current status of implementation and existing gaps

Thresholds on embodied carbon using iron and steel have been initiated for consumer products (e.g. cars, buildings). Several countries have set limits on embodied carbon for various building types as part of national policies and strategies (ITA, 2024).

Examples and initiatives

The revised EU Energy Performance of Buildings Directive mandates reporting the life-cycle global warming potential of the construction material of new buildings. (European Commission, n.d.).

Current status of implementation and existing gaps

By 2022, nearly 100 countries had implemented bans and levies on plastic packaging and single-use items. However, the enforcement of bans is still an issue in some parts of the world. Additionally, waste management practices, although improved, have not kept pace with the plastic waste generated (Braun, 2024; OECD, 2024b).

Examples and initiatives

In 2024, global leaders, including the High Ambition Coalition to End Plastic Pollution and the G7 Ministers, called for a legally binding treaty and comprehensive actions to end plastic pollution by 2040.

Current status of implementation and existing gaps

Thresholds on embodied carbon have been initiated for consumer products (e.g. cars, buildings), often considering embodied carbon on its own or as part of a broader metric alongside operational carbon over the product’s life cycle. Since cement and concrete are among the largest sources of embodied carbon in construction, several countries have introduced limits on embodied carbon for various building types as part of national policies and strategies (ITA, 2024).

Examples and initiatives

Country-specific examples include Denmark’s National Strategy for Sustainable Construction, France’s RE 2020, the Kingdom of the Netherlands MilieuPrestatie Gebouwen, and global warming potential under the Buy Clean California Act in the US (ITA, 2024).